Contrast Insurance - Coverage Simplified. - Get Informed

Why Do I Need an Insurance Broker?

Mon, 01 Jan 2024 04:00:00 GMT

WHY
INDEPENDENT BROKERS
MAY BE MORE IMPORTANT THAN EVER.

The pace of change today in the insurance business is incredibly fast.
People spending their work weeks surrounded by it can hardly keep up...so it's not surprising that the average person doesn't bother trying.

CAN I GIVE SOME ADVICE?

Brew A TON of coffee if you want to learn it before your renewal because it is a VERY deep dive.

Since it's 2024.
You could outsource that expertise to an insurance broker...
and watch some ad supported Netflix.

HERE'S WHY A
GOOD INSURANCE BROKER
IS YOUR BEST BET.

FLEXIBILITY AND CHOICE.

Buying directly from a company doesn't give you an idea of what's available.
There's no comparison.

When you shop with the help of a broker, you're looking at the whole
industry offering - not just one provider.

A good broker will review YOUR situation and make sure you understand what's out there and how your coverage stacks up against it.

If you've never used one....THERE IS NO COST TO YOU FOR THE ADVICE.
Brokers are paid via commission from the insurance companies not the people buying the insurance. Like when you buy a house.

RELATIONSHIP.

Everyone loves 'fast and easy' when buying things.
The downside is that it doesn't always translate to
'Great Service'.

GET YOURSELF A ‘GO-TO' PERSON. 

Ideally it's the same person each time because explaining myself multiple times to new people is a special kind of awful for me.

I find real value in ‘knowing someone to call'
when I have a problem...and with all else being equal I'll take service and relationship every time.

"Why yes. I'd love to hold. thanks."

CLAIMS GUIDANCE.

It happens more often than you’d think.
A good broker should be able to work with you throughout a claim.

They can:

Help with documentation and getting things started right.
Retrieve answers when things aren’t moving quickly.
Set expectations and explain things as they are happening.
Keep an eye out for what's best for YOU on renewal and going forward.

Without a broker you’re kind of on your own here. 

As someone who’s seen a few claims go sideways...having a broker that knows the process can be a true difference maker.

'Lawyering up' right away on a denied claim and dealing with it all yourself can take years off your life mentally not to mention draining you financially.

LET SOMEONE WHO KNOWS ABOUT IT BE YOUR GUIDE.

BROKERS OFFER THE BIGGEST VALUE IN A CLAIMS SITUATION, AND WHILE YOU HOPE TO NEVER HAVE ONE...ACCIDENTS HAPPEN.

Last but not least.
SUPPORT SMALL BUSINESS.

Independent brokers are part of the business community and are entrepreneurs just like your local barbershop, a contractor, or a restaurant owner.

Supporting small businesses feels good and creates local jobs.
Multinational Conglomerates are great... but if you can support someone in the community that'd be my preference.

Admittedly there are many options to buy insurance - so look around when your policy renews - and find one who's interested in you and worthy of your business.

-MD

What's VALUE to you?

Wed, 24 May 2023 03:00:00 GMT

It occurred to me recently that I’ll never REALLY be satisfied with paying for insurance.
Home. Auto. Life. Travel....whatever.
I could think of hundreds of things I'd rather spend $3,000 a year on.

1. Buy used Seadoos every year to ride and abandon.
2. Buy new grass each year and never take care of it knowing more is coming next year.
3. Unlimited Ice Cream and Milkshake Budget.
4. Donate it. (had to offer up SOMETHING that wasn't totally self indulgent)

This could go on, but I think you see where I'm going here.

Insurance is a lot like PROPERTY TAX or AN OIL BILL. I don't WANT to pay it, but it's a requirement if you have a vehicle, or home.

So with this in mind, I submit to you a suggestion for improving your feelings about these payments.

GET VALUE.

Make sure the money you spend is MAXIMIZING your personal enjoyment of this otherwise disappointing expense.

It seems that a LOT of people derive the VALUE from knowing they paid the absolute bottom dollar for insurance coverage.

They shop for new carriers every year, they don’t mind waiting on hold forever, and they have zero interest in getting to know the people offering that product.

THE VALUE FOR THEM is about feeling like they got the VERY LOWEST PRICE AVAILABLE.

In today's world.... I TOTALLY get that approach. It keeps the most dollars in your pocket TODAY, and you're rolling the dice on never needing to use it.

If you're this type of customer....consider a direct insurer.
There are lots of them out there catering exactly to what you're looking for. (TD, UNIFUND aka JOHNSON, Sonnet, etc)

The model is setup so that the insurers save costs on selling it (using call centers) and then pass some of those savings to the customer through lower premiums.

ALL UPSIDE right? Not necessarily.

There's usually a TRADE OFF.

When you buy direct from an insurer, you're opting to represent yourself in all dealings with that provider.

A broker's job is to advocate for their client in a claim. So by removing the broker from the equation you're forfeiting that extra layer of protection/advice you could be getting.

No different than buying a home without a realtor. Super idea until you find out the house is built on a swamp. Since you're actually risking more to buy direct it makes sense the price should be lower.

If you have a claim that goes sideways hopefully you've banked some of that money you've saved on premiums to hire a lawyer.

You forfeit the right to complain if you declined a coverage to save money, or don't feel well represented in a claim situation.

You shouldn't troll the TD social media accounts about how BAD THEY ARE AFTER A CLAIM IS DENIED. *Although I should admit I enjoy reading those.

If lowest price was the only thing people VALUED the market would be FLOODED with Kirkland Basketball Shoes and Big 8 Jeans...yet I can't find Big 8 Jeans anywhere.

VALUE can be lots of things...
especially with items you can't un-box.

Accessibility (quick to reply to emails/text/phone calls?)
Familiarity (Do I have the same people every time? Does it feel like my business is valued here?)
Transparency (Do they explain things to me? Do I know what I have, or why I have it?)
Capability (Do I feel like this person knows anything about insurance? Am I getting good advice?)
Dependability (Is this person going to be here when I have a problem? Do they know anything about claims?)
Support for Local Business (Local brokerages SHOULD provide local jobs)

VALUE for MANY is a combination of a number of things.

I prefer to support local when I can but honestly FAMILIARITY is my favorite. I like to have a relationship with a service provider if at all possible...BUT ONLY TO A POINT.
A reasonable price is absolutely a factor.

Most Nova Scotia residents are not in a position to completely ignore price...nor should they. Those insurance bills are going to keep rolling in...and most of us are going to keep paying them so why not feel better about the payment by getting some VALUE out of the transaction.

It’s out there…just figure out what it means to you and look for that.

-MD

Cancel your insurance. Don't just let it run out.

Tue, 14 Feb 2023 04:00:00 GMT

In the past 5 years, have you ever been cancelled, declined, or refused coverage?"

Clients that have been cancelled for non payment may find themselves PAYING A LOT MORE for coverage at renewal.

Here's a few reasons to make insurance payments a priority.

Avoid getting picked last for kickball.

Insurance companies choose pricing on policies to bring them customers they WANT to insure.

Paying your bill, and being financially reasonable is a big step towards keeping you on the WANTED list.

Pricing can be complicated and insurers tweak their offerings all the time to attract MORE of the risks they want, and LESS of the risks they don't want.

STAY ON THE WANTED LIST!

via GIPHY

More Money.

Without question, if you've been cancelled for non-payment during a policy term, your costs are going up at renewal.

Some companies surcharge as much as 25% more than last year for one of these slip-ups.

Fortunately Auto Insurance is regulated by the province, and if you pay the missing amount before your cancellation date there's a requirement to reinstate your coverage.

Once renewal rolls around though, that's when you'll see the additional costs.

Property on the other hand has NO REGULATION which means insurance companies don't HAVE to do anything... and the market is trending towards insurers NOT REINSTATING HOME POLICIES that have been cancelled for non-payment.

This leads to shopping for coverage elsewhere right away, and your options are often less attractive.

When it Rains, it Pours.

If you're able to get your insurer to reinstate your HOME policy, there's a good chance they may not offer monthly payment anymore.

PAYMENT IN FULL?!

Sadly yes.

If you decide to go elsewhere "since this is ridiculous" you're likely to have an even higher premium elsewhere since you've been removed from the WANTED list.

Understand What You Signed Up For.

An insurance policy is a 12 month agreement.

Tons of people end up getting cancelled for non-payment simply because they didn't know it they had to cancel it.

Some people will put a 'stop pay' on their payments rather JUST CALLING them to cancel it.

You accidentally push your future self off an insurance rating cliff.

The takeaway here is:

If you’re living paycheck to paycheck and you sometimes have to ask: "WHICH BILL IS GETTING PAID THIS MONTH?"

You can save FUTURE YOU some money by putting your insurance bill near the top of the pile.

- MD