Insurance in Cincinnati

February 2nd, 2012

My name is Jack Thomas and I oversee an independent insurance agency in Cincinnati. I’m an author, blogger and prolific writer. The truth is this : I love to write, advise, and every once in awhile I display some dry humor in reference to insurance policies. (Insurance is dull but it doesn’t have to be that way.) Right now I’m working on a guideline that will help uncover some nasty little methods that a number of insurance firms do not want you to learn about. I’ll present more information about that in a forthcoming future article.

In actual fact insurance is a unfortunate requirement, and on top of this it is tremendously misunderstood. We learn more about insurance coverage by viewing tv advertisements. Insurers tell us we are having to give an overwhelming amount for our motor insurance and then they by themselves hold the secret to our salvation to affordable auto insurance costs. I refer to this as the Insurance Merry-Go-Round™. I’ll summarize in my subsequent article the precise specifics of the Insurance Merry-Go-Round™.

When anyone are searching for car insurance in Cincinnati, they might observe a very similar insurance advertising theme that is running in the Ohio, Kentucky, and Indiana area where our company actively provides insurance.

One insurance company promises they offer 40% discounts, another insurance company tops on another 15%, and still another insurance company informs us that they are able to save us hundreds, 21st Century Insurance tells us that if you are with two certain insurance companies you are overpaying by hundreds.

If you were to tally up all of the discounts and the rate savings, your insurance ought to be free right?

Insurance providers really should compensate us to sit through the day-to-day barrages of insurance advertisements we have to experience as we try to savor our evenings, would you concur?

Insurance commercials rule the tv advertising marketplace in Ohio and they most likely dominate in your area as well.

So why do we see a lot of commercials about insurance? Considering that the insurance firms producing those advertisements are making profits hand over fist! Insurance is big business, and it is lucrative also. Exactly why do you reckon Warren Buffett purchased Geico? Simply because he’s generating so much income he does not believe he is shelling out enough in income taxes! (In spite of the fact that Mr. Buffett’s company owes $1 billion in past due taxes to the federal government.)

So we notice insurance advertisements on television simply because companies are effective in persuading people to purchase their insurance plans bringing in tens of millions, and billions of dollars in brand new premiums.

However is that all there is to insurance? The firm offering the best selling price on insurance is the winner?

Let’s investigate this a little bit more in my following post referred to as the Insurance Merry-Go-Round™.

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Buying Insurance Direct May Not Be Your Best Option

June 5th, 2009

Local insurance agents offer better prices than GEICO, Progressive Direct, and Esurance. Don’t be fooled by slick TV advertising!

Convenience does not guarantee best price.

We most certainly live in a very fast-paced society. Although the economy is facing one of the worst recessions in recent history, convenience is still something that we all desire. When we shop for groceries we often use a local grocery store to do so, when we fill up our gas tank we likely use the service station close to our home or place of business.

In years past when you looked to purchase car or home insurance, you likely would go to your local insurance agent to do so. Companies like GEICO, Progressive Direct, Esurance have made purchasing insurance seem both easy and convenient. With their witty and comical commercials you seem to get the impression that you are assured to save money on something that we don’t necessarily want to spend a lot of time thinking about.

However what’s interesting about these companies is that they don’t necessarily offer the best savings opportunities for your insurance. Sure, you can get a quote, and buy your policy with a few clicks of the mouse, but do these companies really offer the best price?

You might be surprised to learn that you can receive a much better price from a local agent who lives right in your community.

GEICO, Progressive Direct, and Esurance plus the growing number of companies that sell their policies directly to the public spend billions of dollars to get their message out to the public. Those billions of dollars invested in advertising goes right into the price you pay for your insurance.

So before you are tempted to purchase a policy from GEICO, Progressive Direct, Esurance, or any company that does not use local insurance agents, take the time to get a quote from a local agent.

By doing so you will likely save more money compared to what one of these companies can offer you, plus you are purchasing insurance from a local agent, often a small business owner living in your community, not to mention someone you can meet with in person.

For a free insurance quote from a local agent in your community click here.

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Who Offers the Best Price on Car Insurance?

May 31st, 2009

With an abundance of television advertisements nonstop from some of the top players in the insurance industry one could conclude that he who advertises the most has the best rates on car insurance. Evidently many consumers agree with that notion as well. In 2008 GEICO not only grew policies in force by 8.2% but at the same time dethroned Progressive Insurance as the number three writer of private passenger automobile insurance in the United States.

What drives these impressive sales numbers? Advertising, advertising, and more advertising.

In the year 2007 GEICO spent $751 million in advertising. Exact figures are not available for 2008 but a record $1 billion or more was estimated to have been spent to encourage insurance buyers to pick up the phone and call for a car insurance quote.

But here is the Billon-dollar question: Does GEICO have the best car insurance rates? If you buy an insurance policy direct with GEICO thereby cutting out the so-called middleman (the insurance agent) does that guarantee a better price?

In a word no, GEICO sets their insurance rates in the exact same way that other insurance companies set rates. GEICO spends a considerably larger amount of money on advertising than any of its competitors and a interesting fact insurance buyers may not realize is the money invested by GEICO in advertising for new customers, is reflected in the true cost of the car insurance policy you own with GEICO.

In other words if GEICO decided to spend no money next year on advertising in theory they could lower the rates for their customers by $1 billion!

That might save GEICO customers 15% or more on their GEICO car insurance policy!

The Agent Gurus Network recommends local insurance agents as a better option for consumers when they purchase insurance. Click here to receive your free quote and find out why professional advice and not just a price™ is a better option for consumers.

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Rate Shopping Comparison

January 8th, 2009

We are bombarded with television advertisements from insurance companies who sell car insurance directly to the public. Do such companies offer a better value compared to insurance companies who use agents exclusively to sell policies locally in your community?

Some car insurance shoppers may assume this is true, so we decided to put these companies to the test. We evaluated insurance rates from GEICO, Esurance, and Progressive Direct, companies that sell mainly to the public directly, (although all 3 companies mentioned here also sell through agents) with companies who exclusively use agents to sell insurance policies namely State Farm, Nationwide, Farmers Insurance, Grange Mutual, Encompass, and American Commerce Insurance Company.

This actual car insurance comparison is based on a married couple living in the suburbs of Cincinnati Ohio, with no tickets or accidents in a 5 year period. Vehicles quoted are a 2008 Acura TL, and a 2004 Honda Pilot EXL. Coverage limits are 250/500/100 with matching uninsured and underinsured limits. $100 comprehensive and $500 collision deductible. Loan/Lease gap coverage and finally road side assistance plus car rental is included. (Neither State Farm or Nationwide offers lease/ loan gap coverage)

Name of Company and Monthly Price

Esurance - $114.37
GEICO - $113.75
Progressive Direct - $109.19

Nationwide – $127.45
Farmers - $117.84
State Farm – $107.22

Grange Mutual - $99.80
Encompass – $81.83
American Commerce - $73.00

In this case study, the assumed price advantage is not evident with companies such as GEICO, Esurance, and Progressive Direct when rates are compared with other companies who exclusively use agents to sell coverage.

In all fairness, a similar comparison in other parts of the country, or with different coverage circumstances may not yield comparable results as insurance companies use so many variable factors to set rates. So you should not rely exclusively on this simple case study as an indication of the competitiveness of the companies indicated. Rates vary by type of cars owned, specific rating territory, credit levels, coverage limits, and frankly too many other factors to mention.

However in this specific example a better rate can be obtained by companies using agents compared to buying directly from the insurance company.

The Agent Gurus Network recommends that you care for your insurance needs by using a local insurance professional versus a company that sells policies exclusively online or by the telephone.

It is our opinion that reviewing your coverage needs with a local professional insurance agent is a better option even if you need to spend a few extra dollars. Click Here to receive an insurance comparison from a local agent in your area.

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Tickets / Accidents

December 15th, 2008

How might tickets and accidents affect your car insurance premiums? One speeding ticket in the last three years will likely not have a significant impact on your car insurance rates, unless it is a teenage driver. However, multiple tickets and accidents most certainly will impact your rates.

If you have experienced a large increase in car insurance premiums your best bet is to take time to receive comparison auto insurance quotes from competing companies. The Agent Gurus Network has established a fast and easy way for you to receive multiple car insurance quotes from top rated companies wishing to bid on your business. Click Here to do that now.

The reason why it is important to request comparison car insurance quotes is because insurance companies charge differing amounts of money when tickets and accidents accumulate. Some insurance companies essentially want you to take your business elsewhere by increasing your rates substantially, while other companies will make the increase more reasonable.

Depending upon the company, the rate increase for multiple tickets or accidents can be most severe. Some companies may increase your individual rate two to three times the normal rate meaning that your car insurance premiums could double or triple! Or worse, you could be dropped by your insurance company altogether, being labeled as a high risk driver.

Many years ago I experienced this first hand. A minor accident was caused with only minor damage and the claim was not turned into the insurance company. Three months later, the same car was totaled and our insurance premium jumped from from $1,000 per year to $3,000 per year instantly. Although we were not dropped, the rate increase to $3,000 per year made us look for other insurance options.

If you have had multiple tickets or accidents what can you do to lower your car insurance rates?

Some may conclude that taking remedial drivers’ training courses would be the best option. Taking such a course may remove points from your driver’s license, but your insurance company will likely not inclined to do the same.

The underlying reason is that remedial drivers training does not necessarily change the behavior of the driver; it removes the points from the license but not necessarily the behavior that led to the tickets or accidents in the first place.

I distinctly recall as I was sitting in a class room for driver’s education, watching a gruesome video of car accidents and the victims being pulled from the wreckage, with the purpose of “scaring” teenage drivers into considering the seriousness of speeding. Did it work for me? Absolutely not! My parents made the mistake of allowing me to drive a sports car they had purchased. With every opportunity I had, every time I drove the car, I pushed the ‘pedal to the metal’, one time exceeding 140 miles per hour with a few of my school buddies egging me on.

Remedial drivers training may remove the points from your driver’s license, but insurance companies will likely not remove the surcharge for tickets or accidents.

Changing your driving behavior is the best way to lower your insurance rates over the long term.

The second best way, as was mentioned previously is to obtain auto insurance quotes from other companies. Insurance companies use varying methods to set rates and penalize those who accumulate tickets and accidents, and the rate differences can be substantial. You can Click Here to receive online auto insurance quotes in all 50 states if your car insurance rates have gone up because of tickets or accidents.

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