Tip of the Week – Why Wait to Save?
Over the last few months many of the “big box” car insurance carriers have been advertising all sorts of money saving promotions. These promotions are merely temporary programs, “gimmicks” designed to encourage you to move your car insurance policy now. The promotion provides instant gratification, just like the prize in a Cracker Jack or cereal box, but the long-term value is just as questionable.
My favorite car insurance promotional commercial is the one where they say “We will send you a check for a small percentage of your ‘semi annual premium’ every 6 months that you don’t have an accident.”
Yes, that sounds like a pretty good deal – and yes, you will save a bit of money – in 6 months.
Since there is nothing free in this world; I have a better idea. Instead of waiting 6 months to get a check for a few dollars, how about getting some savings today? You heard me right… Today!
That’s because, if you have a good driving record, all the carriers which insureDirect.com represents will provide all your savings up front. No waiting. No gimmicks.
When you call InsureDirect.com, you instantly have access to 30 auto insurance companies which give you “all the discounts you deserve” today. No waiting for a check or a lower rate next policy period.
Grandfather Always Said
Last week, I was having dinner with my cousin Rob. And, as often is the case, we talked about the funny things our grandparents used to say. Things like, “put on a sweater or you’ll get pnuemonia.” Or, “don’t sit too close to the color television… You’ll go blind.” Or, “If you don’t stay out of the pool for twenty minutes after eating, you’ll get a cramp.
But, among all of these well-meaning, but generally inaccurate gems of wisdom that both my grandmother and grandfather shared with us, we realized that the advice grandfather shared about taking care of your automobile was actually both timeless and true.
For instance, he would always tell me that my car’s tires didn’t have enough air in them. “Mike, just because you can only afford to drive an old car, the last time I looked, air for the tires is free.” Well, air isn’t free at most places any more, but that fifty cent investment in keeping them properly inflated will save you as much as $5.00 on you next gasoline fill up, and probably increase the life of your tires too.
He’d also tell us, (although I’m not being paid for this endorsement) that “a can of STP in your oil every now and then will keep your motor going longer without costly repairs.” I can’t say that I know this to be true scientifically, but once again, it’s hard to argue that ‘an ounce of prevention is worth a pound of cure.’
And last but not least, my grandfather always used to boast how much money he was saving with his insurance guy. That his insurance agent had the cheapest car insurance in the world and provided the best coverage. Nothing you could possibly say would budge him from that belief.
Well, having been a kid at that time, I wouldn’t have argued anyway. But now, after so many years in the business and helping literally thousands and thousands of drivers get the best rate possible on auto insurance, I’d like to think that I’m at least somewhere among the best in the insurance world.
Sadly, grandfather is no longer with us, but my cousin Rob reminded me that he’s been insured with me for over 15 years, and that he didn’t give me the business because he’s a relative (even though he’s a good guy), but that he’s stayed with me all this time because he’s compared rates every year, and no one has yet been able to beat me. Although it kind of hurt my feelings to find out that he’s been shopping every year, I’m happy, because I’m able to share his experience with you.
So, while I’m not going to tell you to keep your tires properly inflated, or to put my grandfather’s preferred brand of oil additive into your engine, I will say that, With 30 carriers to choose from, probably including the one who writes your auto insurance today, and being able to quote and bind auto insurance nationwide, I’m pretty confident that I can find a great rate for you too.
-Mike
Tip of the Week – No Free Lunch?
You’ve no doubt heard the saying “there’s no such thing as a free lunch.” Sure you have; but but is that really true?
If I told you that you could get an insurance policy which would protect everything you own in your apartment, virtually for free, would you believe me? You should, or you’re going to miss out.
Many auto insurance buyers are simply not aware of the existence of Auto/Renters Package Policies. Although most carriers offer one, they don’t promote them heavily because they really don’t like giving anything away for free.
Just because you don’t own your home does not mean you can’t buy a package policy which covers both your car and the contents of your apartment or rented house from fire and burglary. Besides covering your clothes, televisions, computers, and furniture. You are also covered for personal liability.
So let’s get back to the free part. If you buy both your Auto and Renters insurance from InsureDirect.com, the discount you receive on both the car and Renters policy pretty much equals what you would pay for the cost of the renters policy alone.
Saving money when insurance doesn’t cover your loss
As an insurance agent for nearly 20 years, I have helped hundreds, if not thousands of my customers through the aggravation of the auto insurance claims process. Having even a minor accident is difficult to deal with, but if you have adequate insurance coverage to pay for the damage to your car, it helps to get through the event with much less pain.
A more frustrating situation is when a loyal insurance customer becomes aware that a particular claim is simply not covered. This misfortune is never pleasant to discover.
Most of the time, this kind of situation occurs when the policy holder has an car that’s 10 years or older and he or she had chosen to reduce or remove their comprehensive or collision coverages to save money.
Although finding out that you’re not covered for an issue is upsetting, In many cases it is not really a bad financial decision to have made. If you calculate the high cost of premiums against a limited claims payout on an older car, and then add in a deductable of $500 or a $1000, you’ll find that in most cases involving an older car, you made the right choice. Insurance carrier actuaries are very good at what they do – It’s really true when they say “you can pay now or pay later.”
With that said, I’ve noticed an interesting phenomenon emerging over the last 10 or so years. Since the mid 1990’s, more and more of my insurance clients have been holding on to their older vehicles. That’s pretty smart; with the cost of a new car and repairs after the warranty has expired, I can see why its appealing to hold on to and maintain that investment.
But sometimes, there’s an option between reluctantly carrying expensive comp and collision on an older car and considering buying a new one when a claim isn’t covered. One story that comes to mind concerns a long time customer, a single mom on a strict budget, who faced exactly this situation. After her car was caught in a flash flood, and wouldn’t start, she was told by the garage she had the car towed to that the engine was seized: full of water and not repairable. Because she had dropped comprehensive coverage on her 15 year old car, she was told she would be fully responsible for the repair. But after the garage gave her an unaffordably high price for rebuilding the engine, she started shopping for a new car.
When she came to my office, we sat and reviewed rates for the replacement vehicles she had looked at. When the payment on a new car and the insurance required to cover it were considered, she came to the conclusion that buying a new vehicle was out of her price range. She didn’t want to buy a used car, worried that she would end up inheriting someone elses problems. So, we looked in a new direction. After doing some searching on the internet, we discovered that it was possible to simply buy a complete replacement engine for substantially less than the price quoted for rebuilding her ruined one. We settled on a company called Gotengines.com, which not only had the most comprehensive site we found online, but also had real people who answered the phone and answered all of our questions on how to arrange to purchase and have a replacement engine installed. Not only could they provide a replacement engine for virtually for any make, model and year of car on the road today, their prices were lower than anyone of the other resources we found on the web. They also have an extensive engine blog, which makes them something of a go-to resource when it comes to learning about replacement engines.
So, to make a long story short, my customer ended up purchasing a used engine (rebuilt and new engines were also available, but we were on a tight budget, of course) and had it shipped to a different local mechanic who was more than willing to install it at a much lower price (including the cost of the replacement engine) than the first garage she was dealing with.
Bottom line; we did two calculations. First, we determined how much she would have spent on the additional Comprehensive and Collision insurance for the previous 5 years. Second, after deducting the price of the engine from and the installation bill from the repair shop, we saw that she ended up saving over $500. Now, that’s a happy ending!
Is health insurance hiding inside your auto insurance policy?
With today’s healthcare reform headlines, there are few who aren’t aware that literally millions of Americans can’t afford the cost of getting Health Insurance through a traditional health insurance carrier. But even if a person does not have traditional health insurance, most private passenger automobile owners with an in-effect Auto Insurance policy actually do have some medical benefits coverage. This is referred to by the car insurance carriers as “Medical Payments Coverage.”
A surprising percentage of people who own an automobile and maintain a car insurance policy don’t realize part of the premium they pay every month may in fact defray the cost of their medical bills if they or a member of their household is involved in an auto accident.
The Medical Payments or Personal Injury Protection portion of many Automobile Insurance policies pays medical expenses which are as a result of a traffic accident or incident. Another covered event would include and incident when you are not in a Vehicle, but are struck by one. If you are a pedestrian walking on a public or private street, sidewalk or parking lot and you are struck by a car, bus or motorcycle, you may also have coverage. In many cases an automobile insurance policy maintained in your household will pay your medical bills — even if you are not a driver on the auto policy. The same could be true if you are a passenger in an insured family car.
Uninsured Motorist and Underinsured Motorist Coverage on an Automobile Insurance Policy might also possibly be accessed to defray or help to defray the cost of your medical bills when the at-fault driver or owner of a car other than your own has no auto insurance coverage in place at the time of the accident or incident. In addition, benefits may be available if the driver or owner of the other car has coverage, but not enough to pay the medical or hospital bills generated as a result of injuries you sustained in an accident.
All auto policy forms vary from carrier to carrier and state to state. Call your agent or carrier for the rules and regulations governing your policy so you’ll know what your car insurance-related medical coverage is.
Understanding Car Insurance Options
Although most people make their automobile insurance payments every month, many have truly no idea of what they are actually purchasing or exactly what they are actually paying to protect. Most think Car insurance pays to fix your car in case of an accident. That is accurate as far as it goes, but the whole truth is that your automobile insurance policy covers you and your household members for many more things than just your car.
Believe it or not; when you purchase car insurance, there are only two areas of the policy form which truly protects “your Car;” That’s the Comprehensive and Collision components of your coverage.
Comprehensive Coverage
Comprehensive coverage pays to repair your vehicle for perils like having your car catch fire, or when you park at the shopping mall and find upon exiting that your car has been stolen. Comprehensive also covers your car if you emerge from the mall to find that some creepy vandal has used the key from his piece of junk car to etch scratches on the side of your vehicle. Your Car insurance carriers also may consider a collision with a deer under Comprehensive. Comprehensive will also cover you for windshield damage from a flying stone or bird strike.
Collision Coverage
Collision Damage coverage pays for the Physical damage to your vehicle. Regardless of whether an accident is your fault or not, your carrier will pay to repair your vehicle – minus the deductible you agreed to when you purchased your policy.
Property Damage Coverage
The Property Damage Coverage portion of your policy pays for damage you have caused in the event of an At-Fault Accident. The maximum amount of Property Damage the carrier will pay for is determined by the limit you agreed to when you purchased your policy. Property damage can include damage to another car or other property like a home owner’s back yard fence or a utility pole. The state minimum in most states is $5000. Many carriers also offer Property Damage limits that pay as high as $100K.
Liability Coverage
Another coverage which covers the driver and occupants of the other car is Liability Coverage. Liability Coverage pays the Medical bills for the occupants of the vehicle your car hit or that was determined to be not-at-fault. Again; the maximum amount paid by your insurance company is determined by the limit(s) you agreed to purchase. The minimum in many states is $15,000 per person, $30,000 if more than one person is injured.
Uninsured and Underinsured Motorist Coverage
What if you are involved an automobile accident and the other driver is at fault? And, to make matters worse, what if the other driver has no auto insurance coverage or has coverage but may not have a sufficient insurance limit to pay for your vehicle or damaged property? Making matters even worse, let’s say you don’t have Comprehensive and Collision coverage on your policy to pay for repairs to your car. Purchasing Uninsured Motorist (UM) and Underinsured Motorist (UIM) may make a huge difference in making you whole again. Depending on the state you live in and that state’s laws, UM and UIM can be accessed to pay for the damage to your car and/or Medical bills if the at-ault driver has insufficient insurance coverage or no coverage at all.
Additional Coverage Options
There are many other coverage options available for purchase within an auto insurance policy as well. For a small additional monthly premium, coverage for Loss of Income, Accidental Death, Rental car and Towing are available. If, after reading this you have any further questions regarding what coverages belong in your auto insurance policy, I invite you to call me personally at please me a call at 1-800-807-0762 ext. 206.
-Mike
“Going Green” Benefits Everyone!
If you think the concept of “going green” is only a recent development in the efforts of businesses and individuals to conserve precious natural resources and make our environment at least a bit more sustainable – then think again!
The fact is, that many businesses, both large and small, have for decades tried to be forward thinking, and to include what are now commonly called “green initiatives” into their business plans. It also makes good business sense, because “going green” does not have to be an either/or proposition. “Thinking green” can save money, increase efficiency, enable a business to serve customers better, and help the environment all at the same time!
Regardless of the common cry that “evil business empires” are ruining the United States’ pristine natural resources in their quest for profits at all costs, smart businesses have learned that adopting green technology helps the environment at the same time it helps to reduce business overhead and increase the bottom line.
In 1996, InsureDirect.com became one of these early innovators. As President, I was very concerned with the amount of copy paper our Lansdale, Pennsylvania location was purchasing annually. I wasn’t happy with either the expense or the thought of where all the paper we were printing was going to end up. I estimated that we were purchasing over 50 Million Sheets of paper every year… All that blank copy paper was costing InsureDirect near twenty five thousand dollars a year! And, everyone knows that business expenses are ultimately passed on to the consumer. We performed a utilization audit and discovered much of the paper we were using was utterly wasted on copying and recopying the same new insurance applications for the purposes of filing, reporting, and forwarding information to our insurance carriers.
I shared my concerns with our duplicating vendor, and learned about what was then a new technology where a business could scan any document into a computer, and then have that scanned document forwarded via Fax, sent by Email, and stored as a permanent record on a computer hard drive. The technology could even convert the printed words on a paper form into searchable text, so that even more efficiency and greatly enhanced customer service could be realized when searching for an important document or record of an insurance transaction.
So, not only were we able to use document scanning technology to reduce our purchasing of copy paper by 80% (and save a good number of trees in the process), we also eliminated the need to constantly buy new filing cabinets every month to store new business applications. Not only did we end up saving $200 on the purchase of new filing cabinets each month, we were also able to reduce the area we needed to heat – over 1000 Square feet of office space being used to house nearly 100 Filing cabinets – reducing what’s come to be known as our ‘carbon footprint’ by a significant amount. These changes also reduced our monthly expenditures, which allowed us to repurpose those funds into hiring more customer service personnel. That not only provided our customers with a better experience, it also helped establish Insuredirect.com as an organization that excels in serving our customer’s needs in everything from getting the right coverage at the lowest possible price to resolving any service issues with industry leading efficiency.
Today, with these measures having been taken 13 years ago, I estimate that InsureDirect has saved nearly 100 trees and passed on the savings of what would have been over $100,000 in copy paper and filing cabinet purchases.
So, if you’re a business person, even if you haven’t really been thinking of ways to include Green technology in your business, taking your company paperless is a great place to start. The savings to your business and your contribution to helping the environment will be a plus for everyone in your community! And, if you’re a potential customer of InsureDirect, consider that our commitment to green business practices not only helps our business to run more efficiently and to keep our planet healthier, but also delivers a better buying and customer service experience to you at the same time. Going Green is one of those rare win/win opportunities where everyone can benefit!
-Mike
How much can you really save on car insurance?
One of the most recognizable tag lines in car insurance advertising today is: “You could save 15% or more by switching to Geico.” Wow; think about that! Is this true? Is Geico 15% cheaper than every other car insurance company in America? If this were true; Geico would be only car insurance company in the United States. The reality is, if you shop online, watch TV, listen to the radio or read the newspaper, every car insurance company makes it sound like they are the cheapest.
How can that be?
Well, it can’t. If there was truly one car insurance company which had the best rates on car insurance, we would not have thousands of car insurance carriers nationwide.
The truth about these “our car insurance is the cheapest” claims is very simple. Every driver, car and situation is different. Every car insurance company needs to raise and lower it rates to stay in business. While everyone is running around shopping for the best rate on car insurance; the carriers are keeping you guessing by raising and lowering their rates and calling the Programs they offer by different names.
Trying to compare one insurance company to another is like shopping for a mattress. Yes, that’s what I said: Car insurance policies are like mattresses. Just try to find a common name of a mattress in two different bedding stores – it will never happen. Say you go to “Mattress Galaxy” and find a great Mattress called “Spine Bracer.” If you want to compare the price at “Bedding World” – they may have the identical mattress; but it’s named “Straighter Spine.” That makes it tough for you to really compare products. And they do it because they don’t want you to be able to.
So, what option do you really have instead of shopping between different car insurance carriers who try to obscure the difference between the policies they offer? If you go to State Farm; Allstate or Nationwide – their ‘captive’ agent represents only that one car insurance carrier. Even if you call Geico, they’re only going to give you one rate. A Geico rate.
What they all hope is that you don’t shop with a Broker like InsureDirect. We’re independent, which means that when you call our Toll-Free number, our friendly representatives give you the ability to receive quotes from over 30 different major carriers including Progressive and carriers owned by Allstate and Nationwide.
But wait a minute Mike! I’ve been told buying from an agent costs more money because an agent makes a commission. Well, I’ve been hearing that for 18 years. But keep in mind who it was that told you will pay more for your car insurance by going through an agent or broker. The big carriers who have to add in the cost of their astronomical advertising budgets, or the single product carriers who have to look out for their ‘captive agents,’ right?
So don’t be fooled by the common misconception that if you buy direct and cut out the agent; you’re going to pay less and save money. Nothing could be further from the truth. In fact, the exact opposite is usually the case. Agents and Brokers make it possible for car insurance companies to sell insurance who don’t necessarily see the wisdom of spending millions and millions of dollars on advertising or captive agents who must be paid regardless of what they sell.
Lets take Geico for example. I don’t know if you are aware of the cost of advertising these days, but it’s astronomical.
But here’s where it gets interesting… How many millions of dollars do you think it costs Gieco to make sure that there’s always a Geico TV commercial, radio ad, or picture of their lovable lizard in just about telephone book in the nation. Not to mention paying for internet ads running 24 hours a day 365 days a year?
The answer? Actually, it costs them nothing!
That’s right, all that advertising doesn’t cost Geico a dime. Those millions of dollars being spent daily are paid by every single auto insurance policy holder currently insured through Geico.
Now; if you take the advice I offered above and combine that with what you now know about who really pays the high price of car insurance advertising, isn’t it worth at least one more call, to 1-800-807-0762 , to see just what you might save on your auto insurance from a pool of 30 insurance companies? I hope you do give us a call – we’ll do everything we can to make you glad you did!
-Mike
Overpriced Car Insurance
Why do so many people continue to pay more for their car insurance than necessary?
Some auto insurance policy holders think they pay a great insurance rate. Some are convinced shopping for car insurance is too difficult or takes to much time to be worth the effort.
The biggest car insurance misconception among long-term customers of a particular car insurance provider is that the longer you stay with that company, the more loyalty that car insurance carrier will show you when you when you have a few car accidents or traffic tickets for moving violations. This is absolutely wrong!
I just love the recent car insurance “First Accident Forgiveness” sales pitches intended to make you feel safe and secure with your car insurance company.
Sure! A car insurance carrier may forgo surcharging you and still happily take your money when you have just “one” car accident…just don’t have another one. It doesn’t matter if you have been with the same insurance carrier for 30 years: If you have two car accidents or a few tickets within the same car insurance policy period, you can make a pretty safe bet that when your next car insurance payment comes due, your coverage is going to be dropped faster than if you missed your car insurance payment due date.
The truth is that nearly all car insurance companies won’t drop you after a single car accident. The only difference is that some may not surcharge you for it.
The only way to insure you’re paying the lowest price for car insurance is to “shop” your car insurance policy every year. Now, I know, you may say “that’s a lot a work” or “I don’t have the time” or “I know I have a great price on my car insurance.” But do you know that for sure? Wouldn’t you like to be confident in the knowledge that you’re getting the best rate possible every year without taking up any of your valuable time?
Well, there is an alternative way to know for sure if you’re really getting the best possible rate on car insurance: Today, there is only one nationally licensed Car Insurance Broker which has built its reputation on the promise that “we shop your car insurance policy every year.”
That’s right, InsureDirect, a nation-wide car insurance broker headquartered in historic Lansdale, Pennsylvania, has been price comparing both their new and renewing customers’ car insurance rates with the many car insurance carriers we represent since our founding in 1992.
Saving money on car insurance every year is easier than ever. So, even if you’re really confident that you have the best rate you can get on car insurance, think again! Like they say, “you could save hundreds.” And after all, since we do the shopping for you, even if you saved just $50 a year, that’s enough to pay for a tank of gasoline – And whose gas tank would you rather fill? Your insurance company’s or your own?
-Mike
Shopping for car insurance is like shopping for groceries… Boring but necessary!
Most would agree that grocery shopping doesn’t rank high as a fun thing to do. But everyone likes to eat, so so there’s no avoiding a shopping trip.
And, just llike a grocery store, where you shop for car insurance can make a big difference in the price you ultimately pay and the quality of the coverage you get.
Some products are cheap and some are pricey. Some car insurance carriers are highly rated, and some are not.
Just like shopping for food, it’s up to each of us to shop the car insurance marketplace every year to know you’re getting the best price possible.
But, in the same way that nowadays there are more and bigger supermarkets to choose from than ever before, there are a lot more car insurance choices too.
As recently as 20 years ago, ‘captive’ car insurance carriers like State Farm, Allstate, and Nationwide pretty much controlled the marketplace. These same few insurance carriers also came to mind when shopping for a new Car Insurance company.
The good news is that with the rise of the Internet, car insurance buyers have more options than ever before. The bad news is that, with so many options, many folks just can’t spend time it would take to find the best offers.
So, instead of settling for only one quote, or a few price comparisons from the single-choice carriers like those I mentioned, it makes sense to get in touch with a national car insurance Broker like insuredirect.com, where you can shop up to 30 different car insurance carriers and feel confident that you are getting a great rate.
We try to make it as easy as possible by offering online buying or the option of speaking to an agent on the phone at 1-800-807-0762.
-Mike