Have you or your business been receiving lots of correspondence from insurance carriers? Are these special offers they rave about actually good deals? Turn this annoyance into a learning opportunity and ask your agent about what a good deal on insurance actually is.
What makes a “good deal” on insurance?
There are many carriers out there who claim they can save you hundreds, if not thousands, of dollars a year on your insurance. This is especially true with auto and homeowners insurance, but it’s true of any type of insurance. These promises aren’t always empty, either – sometimes you really can save money. But you may go and get direct quotes and find little to no savings against your current policy at all. What gives?
“Special offers” are meant to try and get you in the door so they can sell you more insurance products. When carriers have to go through agents, they have to give the agent a commission. It might seem like these savings are passed on to the consumer, but are they really? It depends on a great variety of factors, but really what carriers are doing is trying to take advantage of a “knowledge gap” between most insurance consumers and how policy premiums are actually calculated.
This isn’t to say insurance carriers can’t give consumers good direct deals. Sometimes they really can. But the question has to be asked: with these savings, am I still getting the coverage I expect? This is where independent insurance agents can fill that knowledge gap. Agents are out to find the consumer the best policy and understand the “fine print” that the average consumer may not understand.
Convenience VS Peace of Mind
Being able to point-and-click and get an insurance policy is extremely convenient. As long as you’re sure you’re being covered for what you need, most people won’t worry about the price if it seems fair. But the few extra minutes talking to an independent insurance agent can provide peace of mind. An agent will help you find discounts that you may not have realized existed and help you better understand how different carriers calculate premiums for their customers.
Peace of mind is definitely worth the small investment of time. Any savings are just a bonus. Better yet, you may find that additional coverage doesn’t cost as much as you think. Saving money now isn’t as important as saving it in the long run, whether it’s for business or personal policies.
At the end of the day, every consumer wants the best deal, no matter what the product. But especially with insurance products, the best deal is not necessarily the one with the lowest price. You have to weigh the convenience of an instant quote against the knowledge and discernment of a trained independent insurance agent. Get the best value for your insurance, not just the lowest price.