Insurance advice

[freebird5850]

I've seen ads regarding car/home insurance and how you should NOT get it through an agent but get it "direct". Does anyone have info or experience? I'm retiring soon.

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TOPICS: Chit/Chat; Health/Medicine; Miscellaneous
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[Presbyterian Reporter]

Contact both and see what their offers are.

Then post your results on FR so the rest of us know.

[Raycpa]

Could not imagine not having agent.

[AppyPappy]

It means you get it online. Do you want cheaper rates or better service?

[maro]

An independent agent can look out for your interests. And the agent’s compensation does not necessarily come out of your pocket. If it did, why would the insurance company advertise to get you to cut the agent out?

[Vermont Lt]

I have used the same insurance agency for more than 30 years.

The price difference isn’t significant in MA because it’s highly regulated.

That said, I had a tree fall on my house and two vehicles three years ago. My agent stepped up and took care of everything. I had a check in my hand in about a week for the cars (1 totaled and the other needed significant body work) and he hooked us up with a contractor to fix the house.

Without the agent, I would have been battling with them for months (as my neighbor did over his home.)

Numerous times over the past decades my agent called me up and suggested changes to the coverage—often resulting in better coverage for less money. In the instances where the changes cost more, the explanation was sensible and put me at ease.

When I opened a business that required some commercial coverage, he was able to write the policies that I needed to get contracts at state universities in three states.

I understand wanting to keep coverage decent at a lower price. But there are “costs” associated with “cheap.” Those are the risks you have to balance.

[alternatives?]

+1.

But make sure you have a good agent, not an order taker.

[Feckless]

It’s not all about cost. My agent provided me with the inspectors report for my roof after a tornado which I used to get the company to pay for the whole roof when they only wanted to pay for half. Saved me from getting a lawyer.

[Mean Daddy]

Depending on the type of insurance, 80-90% of the first years premium goes to them. That’s why a lot insurance salesmen do so well if they can grow and maintain their customer base because they still get a piece of the pie 20 years after selling you the policy.

[Governor Dinwiddie]

[Magic Fingers]

“It means you get it online. Do you want cheaper rates or better service?”

I’ve paid more/less and received good/bad service in all purchasing scenarios. I’m currently using an independent agent who placed me with a carrier with competitive pricing (lower than what I was paying for coverage with a direct/on line company). I haven’t had to file a claim with them so the jury’s still out on their service. YMMV.

[freebird5850]

You’re right...My luck would be I have a car accident and have to deal with the legal stuff on my own if I didn’t have an agent. Next step is to compare other agencies.

[Georgia Girl 2]

I’ve been with Geico for 35 years. Bundle my car and homeowners. No middle man. You just deal with Geico.

[freebird5850]

You’re explanation certainly makes sense and nicely written. This is what I needed to hear (read), thanks.

[John Milner]

I had a parking lot hit and run. Called the agent. They do nothing. “Go download the app. Put in all the information.”

So much for, “Like a good neighbor, State farm is there.” Tried shouting that and no agent popped out of the mist.

They were sending me emails after my renewal was 30 days past saying my coverage was about to expire. I was not getting the bills. Found out after the fact that somehow (not ME) I got changed to email billing instead of USPS mail. I guess the agent could have called me when it was overdue to find out why I wasn’t paying on time after a couple of these. Finally got it changed back to USPS billing.

Now they’re ‘simplifying’ their billing process. I’ve received about 9 mailing about how simple it’s going to be and to make sure I change all my bill pay to the new account numbers they made up. So, yeah, NOT simpler.

Guess I have one of those order taker agencies.

[NEMDF]

We use a brokerage (Gallagher). When our prior carrier (Nationwide) came in with HUGE premium increases a couple years ago, they were very helpful in finding new, affordable coverage.

Also, don’t be afraid to ask lots of questions, and have rates quoted with higher deductibles, if you can afford to cover. Start with maybe at least $1,000 on auto coverages and $5,000 on homeowners. Some homeowner coverage a few years back would state the deductible as a percent of the market value of the house, but I think this is a little dangerous, since the value can fluctuate so much over a couple years.

If you are retiring, be sure to tell them that your mileage will be reduced (if true), and not doing a daily commute.

[MV=PY]

My agent knows what I want and shops for the best deal for appropriate coverage.

I went direct for years, will never look back.

But you have to find a good agent.

[KarlInOhio]

Was that a multi-company independent agent or a single company agent like State Farm? (No complaints about SF as that’s who I have and am most familiar with)

[alternatives?]

When you first buy, you need to go in and talk to the agent. You need to do some research before you go in. Read up a bit on umbrella coverage, packaging coverage, uninsured auto coverage, and deductibles. When you go in, don’t let them know what you know. See how they describe coverages and make recommendations. Ask about their claims handling.

I have had good luck experience talking to State Farm claims people. But I tray to offset their losses. When the power surge blew out several items, after checking with them, I replaced my garage door opener. They gave me a break on other items.

[Vermont Lt]

It is an independent agency.

They draw from a few different companies. And they do all types of insurance.