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| 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:
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.
'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.
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
-MD
0 Comments
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.
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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! |
More Money.
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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.
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.
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?!
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.
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.
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
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
What's a good deductible for my insurance?
If you've ever had insurance before, chances are you've heard the term 'deductible'.
Let's just go ahead and define it:
It's the amount of money a policyholder is responsible for in the event they make a claim on their policy.
WHY IS THIS IMPORTANT?
Well one reason is that DEDUCTIBLES are typically DIRECTLY RELATED TO THE COST OF THE INSURANCE POLICY.
The MORE money a person is willing to pay for a deductible, the LESS money an insurer usually charges for the policy.
Another IMPORTANT reason to care about your deductible is that you should MAKE SURE YOU CAN AFFORD TO PAY IT IF YOU NEED IT.
*So don't get carried away with $5,000 deductibles on your 2006 Honda Civic.
2 Deductibles - 1 Policy
There's nothing new about the idea of multiple deductibles in one policy.
Consider Auto Insurance being split into collision and comprehensive deductibles.
What's WORTH KNOWING NOW - Is how this has made it's way into both HOME INSURANCE and COMMERCIAL PROPERTY INSURANCE.
Consider Auto Insurance being split into collision and comprehensive deductibles.
What's WORTH KNOWING NOW - Is how this has made it's way into both HOME INSURANCE and COMMERCIAL PROPERTY INSURANCE.
Many insurers will give you a $500 or $1,000 deductible on the house....but then require a $2,000 deductible for any WATER damages.
In some cases they may remove or limit coverage on certain types of damage altogether. Ex. Vandalism by tenants.
In some cases they may remove or limit coverage on certain types of damage altogether. Ex. Vandalism by tenants.
The reasoning
By PUSHING UP DEDUCTIBLES insurers hope to:
1) decrease the number of small claims being made.
2) ease the pressure of yearly premium increases.
3) make policyholders care more about AVOIDING losses altogether.
1) decrease the number of small claims being made.
2) ease the pressure of yearly premium increases.
3) make policyholders care more about AVOIDING losses altogether.
Advice
Don't apply a one size fits all approach here.
Some carriers offer GREAT price breaks for certain deductibles, and way less of a break on the next level up.
Some carriers offer GREAT price breaks for certain deductibles, and way less of a break on the next level up.
EXAMPLE: Home Policy costs $1000 a year with a $500 deductible.
That carrier may offer you $850 a year for a $1000 deductible.
(that's a solid price break if you're wondering)
Then $800 a year for a $2,500 deductible.
That carrier may offer you $850 a year for a $1000 deductible.
(that's a solid price break if you're wondering)
Then $800 a year for a $2,500 deductible.
The last option is not as attractive in my opinion, but someone trying to minimize their yearly premium may feel differently. What is reasonable for one family to payout in the event of a loss may not be for another.
KEY TAKEAWAYS:
1) Understand what a policy requires of you if you need to make a claim.
2) Be comfortable paying the amount of a deductible if you need to.
3) Minimize the cost of coverage by figuring out what risk you're willing to carry.
2) Be comfortable paying the amount of a deductible if you need to.
3) Minimize the cost of coverage by figuring out what risk you're willing to carry.
CLAIM SCENARIO - Deductibles in action
FUN FACT: Did you know a deductible applies to the LOSS and not to a policy limit?
Example: Jewelry has a $5000 maximum payout on a policy and a $1000 policy deductible.
Policyholder 1 loses their $6,000 engagement ring while taking a ride on the Halifax Harbour Hopper. Lucikly they listened to a broker who helped them purchase a policy that included 'mysterious disappearance'.
Policyholder 1 loses their $6,000 engagement ring while taking a ride on the Halifax Harbour Hopper. Lucikly they listened to a broker who helped them purchase a policy that included 'mysterious disappearance'.
Most consumers would probably do the math like this:
$6,000 ring
Maximum jewelry limit is $5,000.
LESS the $1,000 deductible = $4,000.
.....but that'd be incorrect.
$6,000 ring
Maximum jewelry limit is $5,000.
LESS the $1,000 deductible = $4,000.
.....but that'd be incorrect.
The ACTUAL calculation takes a DEDUCTIBLE from the LOSS and THEN applies any policy limits.
$6,000 ring
- Deductible (1000)
= $5,000
In this case, policyholder 1 would get a $5,000 payout.
$6,000 ring
- Deductible (1000)
= $5,000
In this case, policyholder 1 would get a $5,000 payout.
About the author
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