The Basics of Shopping for Insurance Quotes

Many people look for cheaper options when their insurance premiums go up, but how do you know if you’re shopping for insurance quotes correctly? I sat down with Don Blizzard, our risk management advisor and most recent hire for his perspective.

What are the most common mistakes that people make when shopping for insurance quotes?

  • Making it all about the price. Anyone in the business knows that customers want a good price, you never need to say it. Saying it to the wrong agent can lead to gaps in coverage to meet price expectation.
  • In commercial lines, calling multiple brokers. Most carriers will only quote your account for one broker, so find one you trust and work with them for the carriers they represent. This way, they can leverage them on your behalf and show you everything rather than you having to sort through offers from 4-5 brokers and figuring it out on your own.
  • Withholding information – always tell your broker everything.
  • Not allowing yourself and the broker enough time. You’d never go to a car dealer and say, “this is what I need and I have to buy something today,” and expect to get the best results. One of the biggest benefits to working with a broker is being able to explore multiple options, and doing that effectively takes some time.

What is the difference between an agent and a broker?

  • Most people who aren’t in the industry use the words interchangeably. The biggest difference between the 2 is who they represent. Insurance agents represent the insurance company, insurance brokers represent the insurance buyer.

How often should I shop/review my insurance policies?

  • In general, it’s a good idea to shop your rates every 3-5 years. Some companies give better pricing to clients who have been with one insurer for 3 years or more. Some let you earn discounts like accident forgiveness, for example. If you have a good broker, they’ll usually let you know when another carrier they have may be more competitive.

How do insurance companies decide on my premium amount?

  • Loss history is obvious in both personal lines and commercial insurance; if you’ve had a lot of claims, you will pay more. One factor a lot of people don’t know about is, in personal lines, credit/debt-to-income ratio plays a huge part in your rates.
  • For commercial accounts, the size, location, and annual revenue of your business have a direct impact on your premium. For example, a business located in Philadelphia will generally have higher premiums than a business located in Media, PA. Companies in the city are seen as a higher risk, so they are expected to pay more.

What are the pros and cons of shopping for insurance online?

  • I honestly can’t think of a pro other than you might be able to do it after hours or get a rate faster.
  • There are too many cons to list. The purpose of insurance is to transfer risk to the insurance company in order to protect your assets. That’s not something that should be taken lightly or done online unless you really know what you’re doing.

What should I look for when deciding on a broker?

  • First and foremost, ask friends and family for a referral.
  • Talk to several brokers and tell them what you’re looking for. Every agency does things differently, so find one that works for you.
  • Don’t assume bigger is better. Choose a broker that’s going to give you the attention you want and deserve. Big agencies can be great, but are you going to be a priority to them if you’re not what they consider a “large” account? Probably not…

Should I have all of my insurance policies with one agency?

  • It is a good idea to have all of your personal and commercial insurance with one agency. It doesn’t necessarily need to be with the same insurance carrier within the agency, but having one set of eyes on everything helps to make sure that there are no gaps in coverage.

Call Risk Averse Insurance in Media, PA to get business or personal insurance quotes.

Risk Averse Insurance is an insurance agency in Delaware County that specializes in providing high-quality insurance products at an affordable price.

What is Commercial Umbrella Insurance?

As a business owner, you risk experiencing losses at your company that are greater than your current liability policies will cover. A commercial umbrella policy will lower your chances of being involved in a claim that will significantly impact your business.

 

Commercial umbrella insurance serves to provide an additional layer of liability protection for your business in the event of a loss that exceeds the limits of your current General Liability, Auto Liability, Workers Compensation, and other policies. If you have a $2 million limit on your general liability policy and the costs of a claim end up adding up to $2.7 million, your commercial umbrella policy will step in to make up the $700k difference.

It’s important to note that a commercial umbrella insurance policy cannot be purchased on its own; you need to already have a liability policy such as general liability or commercial auto before trying to purchase umbrella coverage. Every business should have at least a general liability policy, so this should not be an issue.

You can purchase a commercial umbrella policy with $1 million of coverage for about $1,000 in premium per year depending on the size, location, and nature of your business. It’s a small price to pay for the peace of mind of knowing that your business can still thrive even after a large claim!

There are many situations in which a commercial umbrella policy could come in handy and save you from paying a huge sum of money in the event of a claim or lawsuit. Below are a couple of examples:

  • There’s a rainstorm over the weekend which leads to a leak in the ceiling at your place of business. You call maintenance in to fix the problem, but before they get there, a customer slips and falls on your floor. Their medical expenses surpass the limits you have in place with your general liability policy, so you’d be forced to pay out of pocket without a commercial umbrella policy.
  • You are in a car accident and the occupants of the other car have severe injuries that exceed the coverage on your commercial auto policy. Your commercial umbrella policy would kick in for the additional amount of the loss.

Anyone can benefit from umbrella insurance, especially considering one liability lawsuit can put a huge dent in your company’s profits. Risk Averse Insurance is an independent insurance company in Delaware County, PA, so we can shop for the best price for a commercial umbrella insurance policy for you. Give us a call at (610) 335-1139 to protect your business and its assets!

Call Risk Averse Insurance in Media, PA to discuss commercial umbrella insurance for your business.

Risk Averse Insurance is an insurance agency in Delaware County that specializes in providing high-quality insurance products at an affordable price.

Does My Roommate Need a Separate Renters Insurance Policy?

Living with a roommate may mean sharing a space and sharing rental costs, but should you share a renters insurance policy as well? The short answer: no. In our long answer below, we’ll walk you through why sharing a renters insurance policy isn’t a good idea and what we’d recommend you do instead.

If you’re moving into an apartment with at least one roommate, it is likely that the landlord or property management company will require that you secure a renters insurance policy before move-in day. This is because while the apartment building itself is already covered by the landlord or property management company’s insurance, your individual apartment and its belongings are not. Ensuring that you obtain renters insurance coverage of your own limits the probability that you’ll go after the property manager in the event that something from your apartment is stolen or damaged.

That being said, why isn’t it a good idea to share a renter’s insurance policy with your roommate(s)? Great question! For one thing, a renters insurance policy only covers the policyholder’s property. If your roommate’s items were to be stolen or damaged, they would not be able to file a claim under your policy because they are not named anywhere on it.

reat option either. While splitting one policy may seem better for your wallet, renters insurance policies are relatively inexpensive. In Media, PA, a renters insurance policy with $100k liability coverage is about $10 per month.

Regardless of the price, adding your roommate to your renters insurance policy could end up increasing your annual premium significantly in the event that they need to file a claim on their own property. If your roommate that is named on your policy came home to find that thousands of dollars worth of their jewellery was stolen, they would contact your insurance agent to file a claim.

Any claims that are filed under your name will directly impact your ability to obtain a policy at a lower price for years to come even if your property was not what was stolen. Insurance companies do not care whether you were the one who needed to file the claim; as long as a claim was filed under your policy, you’re seen as a bigger risk to them and your annual premium will reflect that.

The best option is for you and your roommate(s) to have separate insurance policies. You can adequately protect your individual property at the cost of a few coffees per month. This is a much better situation to be in as you do not have to worry about claims being associated with your name that weren’t actually yours.

Contact Risk Averse at (610) 335-1139 to get a renters insurance quote for your rental property and ensure that your valuables are covered!

Call Risk Averse Insurancein Media, PA to discuss your business or personal insurance.

Risk Averse Insurance is an insurance agency in Delaware County that specializes in providing high-quality insurance products at an affordable price.