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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
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.
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.
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.
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.
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.
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.
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
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
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.
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