A Professional Agent or one of those "direct" carriers?

Written by: Shannon S Stockdale

Insurance isn't really as simple as some like to make it sound.  "Oh, just call this 800 number and they will get you cheap coverage."  EVERYONE wants their premiums to decrease and that includes me and I wish it was really that easy.

An insurance policy is a legal contract.  When you purchase that policy you have an expectation that coverage will be provided when you are in need.  How do you have any idea what you are purchasing and if this product is appropriate for your needs?

Before you purchase that policy you need to stop and consider what you are buying.  What coverages does it provide? What types of deductibles are part of that policy?  Insurance is not something you need JUST to satisfy New York State or your mortgage contract.  The definition of insurance is to make you whole again after a loss. To leave you in the same place you were before the loss happened. It isn't going to matter if that policy cost you $100 or $1000 if it doesn't offer you protection when you need it the most.

Below is just a few examples of what I see happen when folks decide to make the switch over to the "direct" carrier:

• In order to lower the price...lower coverage
• Apply a deductible to your personal injury protection.  This means if you are involved in an auto accident and need to go to the hospital you will be responsible for the first few hundred dollars of the hospital bills.
• Sell the policy first and underwrite later.  MANY fall prey to this one.  I compare it to a "bait and switch" marketing tactic. The company sells you the policy at the low rate and THEN runs reports on your motor vehicle record, loss history etc. Depending on those results this policy will either increase (could be minimal, could be dramatic) or they may not even want to continue coverage at all.  They will issue a cancellation and leave you out there searching for a policy all over again.

Something they won't tell you in that 15 minutes is when it comes time to upgrade your vehicle, you will find yourself driving upwards of 60 miles to maintain your coverage. NYS law requires a photo inspection to be completed within the first 5 days of adding the car to the policy.  Those direct writers do not have photo inspection sites between Binghamton and Albany.  So, after you pick up your new car you may be looking at a very long ride to ensure that the physical damage coverages are secured.

A wise person once said every single loss you have is insured.  The question is...is it insured by an insurance company or by you?

There are many ways to drive the price of insurance down, you can minimize, reduce or restrict coverage.  However, you need to be aware and educated in the process, and sometimes that can take a little longer than 15 minutes.

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