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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.
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.
'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.
Last but not least.
SUPPORT SMALL BUSINESS.
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.
-MD
In the past 5 years, have you ever been cancelled, declined, or refused coverage?"
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! |
Once renewal rolls around though, that's when you'll see the additional costs.
This leads to shopping for coverage elsewhere right away, and your options are often less attractive.
PAYMENT IN FULL?!
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.
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.
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?
2 Deductibles - 1 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.
In some cases they may remove or limit coverage on certain types of damage altogether. Ex. Vandalism by tenants.
The reasoning
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
Some carriers offer GREAT price breaks for certain deductibles, and way less of a break on the next level up.
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.
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
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'.
$6,000 ring
Maximum jewelry limit is $5,000.
LESS the $1,000 deductible = $4,000.
.....but that'd be incorrect.
$6,000 ring
- Deductible (1000)
= $5,000
In this case, policyholder 1 would get a $5,000 payout.
About the author
Matt Davison is a |
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