As an insurance buyer, you have many options relating to how you buy your insurance. We hope to provide some interesting factors that we hope will help you in your quest for the best possible combination of coverage, price, and service. We need to start with a basic premise, that is, insurance is not just a policy or product. Insurance is a tool you use to protect your business, your property and family from potential loss. In the absence of insurance, most of us could not afford to recover from a loss, injury or damage.
Let us lay out some fundamental truths about insurance.
- Insurance policies are all different.
- Insurance companies are also different.
- The experience level of agents varies greatly.
- There are different kinds of insurance agents.
- All insurers have basic rates that are regulated by the State.
- The fewer losses you have, the better off you are.
- It is possible to design an insurance policy that fits your needs while being cost effective.
What do we mean by each of these? Let us give you a short overview of each. We hope you will call our office and start a conversation with about how we might help you.
Insurance policies are all different.
Contrary to popular belief and advertising, insurance policies are not one size fits all. Every personal and business insurance policy is unique. Insurance was designed to offer basic coverage but have the ability to be modified, changed and added to make sure the coverage purchased meets the needs to the buyer. Having an agent who understands you and your needs allows him or her to design a policy or program that addresses your individual risks.
Insurance companies are also different.
Insurance companies differ in many ways. Some insurance companies have better rates for older drivers; some offer greater discounts for seniors; some only insure new homes while others only write businesses. In addition to the kinds of coverage, they offer insurance companies have different services. Some insurance companies have great claims service while others do not. Some insurance companies outsource their accounting to foreign countries. We understand that these differences can affect the level of customer service and support you get. We work hard to match our customers’ needs with the insurance company that will meet those needs.
The experience level of agents varies greatly.
Would you rather have an agent you just graduated from high school or one that holds many professional designations and ten years of experience? You want an agent who is supported by a local agency that is committed to the professional development of their staff. Some insurance agents sell more life insurance and know little about commercial insurance. Many insurance agents work to educate themselves through continuing education and obtaining certifications such as CPCU, ARM and other kinds of insurance specific designations. Don’t you want an agent who takes the time to train and educate themselves on how to help their client manage risk?
There are different kinds of insurance agents.
Most agents fall into two categories; independent agent and direct writers.
Independent agents are locally owned business professionals who live and work in your community. Independent agents have access to many different kinds of insurance companies and are not controlled by their insurance companies. Independent agents do not work for their insurance companies and can place business with the insurance companies that best fit the needs of their clients.
Direct writer or captive agents work for and are paid by the insurance company. These are firms like Allstate, Farmers, State Farm, and others. Captive agents have in-depth knowledge of their companies particular company’s insurance products and offerings, but cannot help a client who may need more coverage or different kinds of insurance offerings.
All insurers have basic rates that are regulated by the State.
Insurance companies who write both personal lines and commercial business must have their rates approved by the State. These rates are determined by a combination of written premium, losses, expenses and investment returns. This help protects the public by keeping insurers from lowering their rates to a point where they could not pay for future losses. Insurance companies also file for discounts that they may or may not apply to your final premium. These discounts can include; loss-free, customer loyalty, good student, safety features, deductible amounts and many more.
The fewer losses you have, the better off you are.
There is no question that people who have fewer losses will have lower insurance costs. One way we recommend to help with this is to review all your deductibles. If you are able to increase your deductible, you save money in lower premiums, but you may have fewer losses to report to the insurance company.
It is possible to design an insurance policy that fits your needs while being cost effective.
Our team of licensed professionals can review your personal and business insurance needs and design a program that fits your needs. We will market your program with many different insurance companies in order to keep your costs as competitive as possible.
McCormick Insurance Professionals
Are you curious to know how you can save more by combining your auto and home insurance? (619) 276-0492. The Wayne McCormick Insurance team in San Diego is ready to serve you, and help you save on your auto, homeowners, condo or apartment building insurance