People seek online quotes for a variety of reasons. There are those who are uncomfortable speaking with an agent because of the implied responsibility that entails. Others are just looking for a range of prices as part of beginning the process of applying for coverage.
However, no matter how sophisticated the website, any potential applicant interacting with a machine cannot receive guidance based on experience, nor can a machine advise you based on your best interests.
Recently, I compared several of these large internet insurance websites that concentrate their business among a few of the low cost carriers against an independent agent's ability to choose from many more highly rated companies.
Here's what I found.
Generally, applicants under 50 in good health will pay about the same cost at the better health ratings (preferred best and preferred non-smokers). This is because most low cost carriers are priced competitively for young, healthy applicants. Even without major health issues, many applicants over 50 will see a wider range of premiums than those under 50. In addition, those with weight and/or health issues may see an even greater range of prices.
Many online quote sites concentrate their business among a limited number of carriers. This makes sense for the online website because fewer carriers mean higher volume per carrier. Higher volume translates into higher commission levels and bonus.
In contrast, most independent agents offer coverage through a large group of carriers. As applicants age, the independent agent is likely to find more options for the client. This is because each carrier has slightly different underwriting criteria.
Another major advantage of using an independent agent is their ability to access competent underwriting advice before applying for coverage. They often have access to an in house underwriter or an underwriter at multiple carriers. With literally hundreds of companies to choose from, this is an important benefit of using an independent agent. It assists the agent and applicant in choosing a carrier, saving time and frustration for all concerned.
When appropriate, the independent agent can go to several carriers on an informal basis with pertinent medical information and receive informal offers. In this way, the agent can guide the applicant to the insurance company that looks at their case in the most favorable light.
Another important distinction between online sites and qualified independent agents concerns some "out of the box" thinking. Recently, we were able to assist one of our life insurance clients in Florida by replacing a whole life policy with a guaranteed premium universal policy. This resulted in reducing his premium by almost half because he had no need for cash accumulation.
Because we were aware of changes in carrier underwriting guidelines, one of our term insurance clients in Southern California was able to replace a 2 year old policy and save money while extending the guarantee period. Certain underwriting criteria will see improved ratings over time. Another term insurance owner in Texas replaced existing coverage and received a better health rating because we alerted him to the opportunity.
These are just a few of the value added benefits that a competent independent life insurance agent can provide.
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. You may contact him at lenny@lifenetinsurance.com or visit his website at http://www.lifenetinsurance.com/ to read all you'll need to know.
Filed under Home Insurance by on May 29th, 2010. Comment. 
Will home insurance replace roof in new home?
We just moved into our home on December 7, 2009. Tonight the wind was blowing really hard and it started to rain a little. Anyway, when I came out of the shower I noticed that there was a water drip next to the ceiling fan on the roof in the bedroom. Will my insurance pay for this or do we have to come out of pocket for it. Also, since we have been in this home, we have had to have the plumber come out and unstop the sewer twice. I feel like we made a bad choice in getting this home now. However aren't stuck with it??
In the case of Home Owners Insurance, reporting a claim should only be considered when the expense is more than you can afford to absorb. You should set your deductible high, to reduce the cost, and then cover anything under a thousand yourself. Insurance is really there to help avoid a catastrophic loss. The thing is, with HO Ins, a single claim is enough to get you canceled in most states (some have laws against it). Doesn't mean they will, but you can be sure that an underwriter will be reviewing your policy. If you do get canceled, the challenge in finding a new policy will go along with a huge premium increase. If you don't get canceled, then next renewal, you may see an increase, after two losses, almost certainly an increase or cancellation.
In this case, if you have serious damage to the roof as a result of the wind, and a resulting leak, it could be covered. However, basic policies may exclude coverage and if you live in an area that experiences a lot of wind damage, then it may be excluded even from better policies.
If an adjuster inspects the ceiling and finds water spots from a previous leak, they won't cover the new damage inside, but they should still cover exterior wind damage.
As to the sewer, that stuff happens, you just have to roll with it. It doesn't make the house a bad deal, but it does mean you should probably go through and look for neglected maintenance so you can get ahead of it before you have more problems.
Filed under Home Insurance by on May 28th, 2010. Comment.
How do I know which insurance Class Code my business should be?
My broker put my business down for Home Health Care Services but we provide training to special needs adults in their home and do not administer medication. We do monitor their medication intake to make sure they take them properly per doctor guidelines but that's all. The quote was much higher for that class code compared to our other services.
You can call on another broker or insurance company and get a quote and code from them and than approach your broker. Every broker deals sometimes with a specific insurance company which has preassigned certain codes and rating to them.
Filed under Home Insurance by on May 27th, 2010. Comment.