Insurance. It’s a mandatory evil there to protect your financial interests, and no offense to the agencies out there, but they can get less blood from your pockets if you know what to look for.
One of the most important factors of insurance is knowing who procures your policy. Many policy holders have fell out-of-love with brand named vendors, and you can reduce your costs significantly just by picking the right agent to meet your needs.
There are three channels to buy insurance from;
Independent agents typically contract with several insurers, yet they present fewer variables to the insuree, but with an overall smaller premium. Additionally, the independent agent offers more flexibility to obtain competitive quotes from several insurers. Ray Lane, insurance guru, recommends these independent agents at the best way to go for most (details on CMU).
Captive agents represent a single insurer, like State Farm, Nationwide, or Allstate. An agent that represents State Farm, for example, is limited to offering insurance policies offered by State Farm companies. There’s no flexibility and if the insurer would like to compare quotes, they must go to another agent representing another company.
Direct marketing writers typically offer bargain basement no-frill policies you often find on the back of a postcard. Widespread advertising typically emphasizes the best quote with the easiest terms to obtain insurance. The downside is, these 800-number telemarketers rarely have the ability to counsel you on sufficient coverage, not to mention, you don’t get the opportunity to examine the policy and fine print in person.
Don’t Rush The Decision to Buy Insurance
Cheaper coverage is always out there, but shopping for the right policy can be tricky. Forget the mass-marketed commercials that promise a policy to anyone because it can become more expensive in the end.
So whom do you choose?
A good independent agent is likely the place to start, and the primary difference here is comparison shopping.