I Can Save How Much on My Insurance?

After more than 30 years in the insurance business, I’ve seen just about everything.  Even so, I am occasionally surprised.  A new trend is emerging among agents, primarily out of South Florida, who are mass mailing quotes for homeowners’ insurance.  Using public data, these agents are supposedly providing personalized quotes tailored to your home.  

These options are a terrible idea for most homeowners, and nearly every one I’ve seen is a thinly veiled bait-and-switch game.  A client recently brought one of these offers into our office, just for entertainment, and the quote got a bit of a chuckle in our shop.  The offer was for just over $560,000 in coverage for a premium of approximately $700 a year. That might actually be a reasonable quote in rural Iowa, but here in coastal Florida, it’s pure fantasy.  When I get questions about these mailings, I often suggest to the client that they call, or email, the agent to see if they can get a legitimate quote.  Results vary quite a bit, but I’ve yet to see one of these mailings that can honor the premium quoted in the original advertisement.

There’s no “magic bullet” for insurance.  Suppose you see a quote for a third of what you’re currently paying. In that case, there’s likely either something wrong with the coverage, with the insurer’s finances, or both.  It’s not realistic for one company to be that much smarter than the rest of the industry.  If they were, they’d have run everyone else out of business already.  

Think of it this way: If you knew all the cars out there for sale were priced between $10,000 and $12,000, and you suddenly found one for $2,500, wouldn’t you be suspicious?  With a car, you can inspect it, test drive it, or have a mechanic inspect it.  That’s harder to do with an insurance policy.  That car might leave you stranded far from home late at night, and an insurance policy could leave you in big trouble after a fire or hurricane.  Similarly, if you need your appendix taken out, you would go to a reputable local medical facility, not some random guy named “Jack” you found on the Internet.

Insurance can take a chunk out of your budget, and you definitely shouldn’t overpay for it.  But what’s the point of saving money on your policy if it leaves you high and dry when you need it most?  Ditch the direct mailings and find a professional, reputable local agent, and work with them to find a price and coverage that won’t leave you stranded.