ABI Insurance Agency Blog

Getting the BEST Insurance at the lowest cost Jan 13, 2012

Getting the BEST insurance at the lowest cost
 
Insurance is something we all need, and in many cases are required to buy, but no one really likes to pay for.  At ABI Insurance our goal is to help you get the best coverage for the least amount of premium.
 
The first step in getting the most value for your insurance dollar is deciding which type of agent you work will with.  You have one of two choices, you can buy your insurance through an agent that writes for only one company and offers only one choice like Allstate or State Farm or through an Independent Agent that has multiple company contracts like ABI Insurance Agency.
 
What are the differences in these types of agencies?  One is called a direct writer and the other is called and Independent Agent.
 
A direct writer tries to place all their customers into one insurance market that they represent for the price they have available. The Independent Agent shops their customers insurance through different companies to find the right coverages at the best price.
 
If the direct writer only has one company they represent, then they can only offer one price for their customer in a “one size fits all” approach.  However, if you represent several companies like ABI Insurance Agency an Independent Agency, you often find a much better price for the same or better coverage that fits your specific insurance needs.  The direct writer does sometimes have the best coverage for the price for the perfect fit, but often there is a better choice.
 
No two people have the exact same insurance needs.  The size of your home, the number of cars, atv’s, boat’s, rv’s, age, credit rating, driving history and number of drivers all weigh in on what you pay.
 
An Independent Agent has the flexibility to shop several insurance companies with one phone call versus having to go to each direct writer to get a quote from their own company.  While the Independent Agent usually will not have the same market as the direct writer, they offer several choices with minimum effort on the insurance buyer’s part. 
 
Regardless of which agent type you decide to trust your insurance needs to, make sure you seek out a local agent.  When it comes time to use your insurance you will be glad you did. 

Has your Insurance Premium recently INCREASED for no apparent reason? It could be the CREDIT FORMULA used by your insurance provider! Nov 2, 2011

Credit scoring has become a very important part of our day to day lives.  A good credit score allows many advantages in receiving the best rates on home loans, car loans, credit card rates and what you pay for your insurance premium.
 
All insurance companies use some sort of credit based classification to determine who gets what rate.  What they use is sometimes very difficult to gauge since they don’t always come out the same with one insurance company versus another on the same person.
 
Unlike a home or car loan, there is no way to explain anything to offset a poor score and change it.  As a matter of fact, the companies normally will not even discuss someone’s credit score with an agent.  Insurance companies normally do not offer anyway for an insured to correct a problem other than refer the customer to a credit rating bureau that they use as part of their scoring formula.
 
It is very important to work with an agency like ABI Insurance Agency that represents many different insurance companies.  Just because one insurance companies formula rates someone with a less than favorable credit score does not mean they all will since each company uses several different factors and no two are the same.  Some companies surcharge more than others for credit related rating factors.  Next to your loss history, credit scores are one of the largest variables for receiving the best value for your insurance dollar.  We have often ran quotes with 4 or 5 different insurance companies and have the same customer qualify for the top tier with one company and be very high-risk with another.  It is not unusual to see rates fluctuate as much as 25% to 50% because of the insurance credit score from one company to the next for no apparent reason.  You may be currently paying too much for your insurance because you do not meet the insurance companies profile as to who qualifies for their top tier  credit rating guideline but qualify for another companies discount and have no way of knowing it.
 
Working with an independent agency like ABI Insurance Agency allows you to compare several different insurance options with just one phone call.  Unlike shopping for a car or home loan, running your insurance credit for insurance purposes will not adversely affect your credit rating, so you have nothing to lose.  ABI will shop the insurance market for you and find the right fit for you and your insurance needs. 

Deduct your way to Savings Sep 12, 2011

Deductibles are part of most insurance polices that can vary greatly from very small to quiet large.  What size deductible fits you best is something that should be discussed with your insurance agent.  In the old days most people carried very low deductibles such as $100 for $250.  Some companies no longer even offer the lower deductibles.  Now we seldom sell new policies with less than a $1000 deductible.
There are several reasons to consider carrying a larger deductible on the physical damage on your vehicles, home or business property.  The first is to get the best buying power for your insurance premium.  The best savings percentage versus risk assumed usually comes with a $1000 deductible with most carriers.  The additional amount of the deductible at risk if you go a year or two without filing a claim, is usually offset by reduced premium in less than a year.   With multiple cars, home or a business with a large property schedule and/or auto’s, savings often would allow you to cover several small claims from premium savings obtained.   We often suggest to our customers to put the savings in a separate account to self insure the small claims and to have cash available to meet the higher deductibles. 
In personal insurance most insurance carriers go by the rules that reminds one of baseball: 3 or more strikes and your out in a three year period.  Insurance was not designed to be used as a maintenance policy and small claims are often better paid, if there are no injuries, out of pocket to avoid being penalized by the insurance company for increased premium due to claims.
Insurance companies look at both frequency and severity when calculating what pricing guidelines you qualify for.  Often by turning in a small claim you loose more in premium surcharges than you gain by turning in the claim.  Also, by turning in multiple small claims in any three year time frame you may severely limit your insurance options and jeopardize your insurability.  If an insurance company cancels you for claims frequency, this information is shared in what is known as a clue report that would make it very difficult to obtain insurance coverage anywhere outside of a high risk pool.
At ABI Insurance we work with our customers to try to help them avoid such tragic mistakes and offer our clients more than just a cheap price.  We work with each customer offering several choices with options and provide risk management advice so our customers can make a better buying decision.  The deductible is certainly one of them that can help our clients find the best value for their insurance premium dollar.  Please give one of our agents a call and find out how ABI Insurance Agency can offer you the best value for your insurance dollar. 

Bundle Up for Summer Savings! Aug 16, 2011

Bundle Up for Summer Savings
 
 
The new buzz word with insurance advertising now days is “bundling”.  It seems that all insurance companies are now trying to act like they have something new to offer with putting together your home, auto, RV and even life insurance.
 
ABI Insurance Agency has been bundling coverage’s for our customers for many years.  In order to get the most out of your insurance premium, applying discounts for multiple policies written with the same company is one of the biggest saving tools available.  The difference is that when you deal with an independent agent like ABI Insurance Agency, we offer more than just one quote on companies offering “bundling.”  I find it very amusing that the direct writer, TV cartoons and actors are now changing gears and confirming what we have been offering as advice to our customers for years, “put all of your insurance through one company in order to get the most savings available on your total insurance needs.”
 
The good news is you can do this locally through an experienced agent that can offer you not only this great savings option but one on one personal advice.  Bundling or multi-policy discounts are certainly nothing new, but we agree is something you should look for when buying insurance.  At ABI Insurance Agency we offer value added insurance planning that specifically meets your needs.  Insurance is not a one policy or company fits all product.  Having the ability to find the BEST coverage for the BEST price is our goal for each of our customers.  There are many ways of achieving this and our insurance professionals are great at systematically shopping your insurance to find that perfect fit.