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Hello my name is Marcus Wegmeyer of Michigan Insurance Services and I’m here today as if one of my friends invited me to coffee and asked, “How can I find out if my present insurance premium is competitive?”  The short answer to their question is, obtain competing proposals.  By seeking a competing proposal you can determine how good or bad your present insurance premium & policy are!

Year after year you pay the premium and it goes up each year without explanation.  Your agent offers little help or rarely contacts you to answer questions, which leaves you in the dark.  So the questions become; How do I eliminate my uncertainty about paying to much?  Is there a better solution available?  How do I find answers to my questions?

The answers to your questions are not as difficult to find as one might think, BUT, it does mean there will be a few minutes of homework involved and the process can be rather simple.  If you are up to it I can offer some suggestions that will put you in control of this expensive part of your budget.

What will this document do for you?

  •  Give you a step by step simple process to obtain competing insurance proposals.
  •  I’ll discuss objections you might have to the methods suggested.
  •  I’ll discuss the advantages to you by using one of these methods. 

 Give you a step by step simple process to obtain competing insurance proposals.

Somehow you need to transfer the information you have about your insurance to the insurance agencies you wish a proposal from.  Basically that means all the information that is on the declaration pages (those first 3 - 4 pages of the policy that identify the coverage provided and rating info.  Let’s start with the easiest way to do this and work our way to the most difficult method.

1.       Grab your cell phone and take a picture of the first few pages of your policy, those pages which contain policy information specific to you. So in the case of an auto policy, pages that contain information about cars, drivers, coverage, deductibles, lien holders, etc.  Once you have selected the agent you want a competing proposal from text or email them the pictures.  They may have a few questions about claims or other things but basically you are done until the proposal comes back.

2.       The next easiest way to transmit the necessary information is to scan (make a PDF) of the pages we discussed in the above paragraph and email that to the agent you want a competing proposal from.  By the way you may be able to obtain a PDF from your current agent rather than make one yourself.

3.       The next way is to call the agent you wish a proposal from and read to them all the info from your policy pages.

4.       The most time consuming and difficult way is to fill out a form on line and submit that to the agent for a competing proposal.

 

I’ll discuss objections you might have to the methods suggested.

The most common objection I hear about sending your policy information to a competing agent is, “but the agent I’m seeking a proposal from will know what I’m paying in premium now!”  There is nothing wrong with that because it tells the competing agent what the max is and they must be more competitive than that to get your business.  They also do not know whom else you might be seeking proposals from and therefore their only option is to provide the best they have.

I’ll discuss the advantages to you by using one of these methods.

When you send your policy data there is an additional advantage to you!  The competing proposal will be based on the same information and coverage as is in your present policy and be the most accurate. 

OK so you have received your proposal back, now what do you do with it?

 

The objective was to determine the competitiveness of your present policy, so look at the premium, is it better, the same, or more expensive than your present policy?  Look at the coverage amounts, do they line up?  The question that probably is in your mind is, “How do I determine if I should make a change of agents or not?”

Here are the 3 steps to decide that:

1.      Rate your present agent & compare to what you sense about the new agent

2.      Depending on the answer to # 1 interview your new agent

3.      Decide

So let’s start with # 1 – rate your present agent:

  • Do you rate them a 3 – they are awesome, competitive, an advocate, & meet all your needs?  Then do you need to go further?
  • Do you rate them a 2 – they are OK but not Awesome?
  • Do you rate them a 1 – they are not awesome nor OK, just tolerable?

If you rated them a 2 or a 1 it’s time to interview a new agent.

  • Ask them about the company they suggested, how financially strong are they?
  • How well does this company pay claims?
  • When you need to make changes or file a claim how does that happen?
  • If you were to make a change of agents, what is the process to make that happen?
  • Will the new agent notify your present agent to cancel the coverage with them?

By now you should be getting a pretty good feel if making a change is in your best interest.  So decide!

So….

  • I have laid out a plan to get competing insurance proposals
  • And how to review proposals
  • And how to assess your present agent and your new agent
  • Hopefully this homework assignment has given you confidence & control over this expense item and its impact on your budget.

YES! I'm Ready To Check The Competitiveness Of My Present Insurance Policy.

Then Email, Text or Call Michigan Insurance Services Agency

Email us at office@mi-insurance.com

Or text us at (989) 370-7500  Call (989) 732-7548

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