COUNTING DOWN THE BIG FOUR - #2 GEICO

JUST 15 MINUTES TO SAVE 15%

Logging in at #2 this year after taking over from Allstate, Geico is steadily putting pressure on the number one spot.  The ease of creating a policy online makes them a favorite of the younger generation and those who are not into face to face interaction. The Geico Gecko is a very familiar presence, keeping the brand relevant for over 15 years since its appearance in 1999.

Geico at a glance: 

• Established in 1936 by Leo and Lillian Goodwin.
• Columbia University business student, Warren Buffett, makes his first purchase of GEICO stock in 1951.
• New headquarters opens in 1959; Chevy Chase, MD.
• Passes the 1M policies-in-force (PIF) mark in 1961.
• Insurance premiums reach $150M; net earnings double to $13M, 1965-66
• Introduces 24/7/365 telephone customer service in 1980.
• Warren Buffett purchases outstanding GEICO stock in 1996, making GEICO a subsidiary of Berkshire Hathaway, Inc. 
• Today, GEICO's assets have reached $32B
• Parent company (Berkshire Hathaway) currently #4 on the Forbes Fortune 500; $182.15B
• Employs more than 30,000 associates; Maintains 14 major offices around the country. 

DEDUCTIBLES - HIGH OR LOW?

CHOOSING YOUR DEDUCTIBLES

When deciding on your insurance deductible, a general rule of thumb to remember is to choose the highest insurance deductible amount you can afford. If you can only afford a $500 deductible, don’t choose a $1,000 deductible in hopes of saving money on your auto insurance policy. If you were to get into an accident, you will have to pay the $1,000 deductible before your auto insurance would kick in.

In fact, I very rarely advised customers to go with anything higher than $500 unless they are older with older cars and still want full coverage, but don't drive very often. The difference in the monthly premium is not nearly worth the amount you pay out of pocket in the event of an accident, which is the reason for insurance in the first place.

It actually angers me when co-workers advise people (especially younger, uninformed drivers) to go with a higher deductible (like $1000 for instance) to make the monthly premium cheaper. Personally, I tell young drivers I give them the same advice on coverages I would give my own daughters, who are 25 and 19, just as I would hope their insurance agent does for them.

In the end, the choice is solely left to the customer (of course) but if you do the math, the long term savings are really not beneficial should you have an accident requiring a claim to be filed in a five year period. Again, just my #twocents.

COMPARE BEFORE YOU SHOP, Part 3 ~ Condo Unit Owner's Insurance

Do Your Homework - CONDO INSURANCE POLICIES

When insuring your condo, make sure you know exactly what your Home Owners Association (HOA) Master Policy covers.  Coverages may vary from association to association, but typically the owner of the unit is covered in one of three ways: 

1. Coverage for the basic building, which includes walls, roof, floors, etc., but the unit owner is responsible for the appliances, carpeting, cabinets, wall coverings, and other items in their unit, including the interior walls in some instances.  
2. Coverage for both the basic building as well as items within each unit, other than the personal property of the unit owner. 
3. Coverage for both the basic building as well as the unit owner's fixtures and improvements. 

When the HOA Master Policy covers the structure, a condo unit owner policy is usually written to cover items that are the responsibility of the individual owner/tenant such as:

• The value of building additions/upgrades made at the expense of the unit owner.
• Value enhancements like an upgraded quality of carpeting.
• Damage to the unit that might not otherwise be covered because of the master policy deductible.

Doing your homework is critical.  Be sure to ask about additional endorsements 

for situations your master policy may not cover. The endorsement for water 

damage is a must add! 

COMPARE BEFORE YOU SHOP, Part 2 ~ Homeowner's Insurance

Do Your Homework - HOMEOWNER'S POLICIES, TX

Many times when I'm quoting homeowner's policies, the cost of the premium scares people away. Buying a home is a very tedious process; takes time, money, patience, and more money.  Why should insuring a home be any different?  

When insuring your family's lifelong memories, one must consider more than what it costs to insure the home, but what it would cost to rebuild in the event of a total loss? Of course nobody wants to think of losing "everything" to a fire or natural disaster, but insurance exists for a reason.  

It's never as simple as choosing the lowest bidder.  What is the insurance policy actually insuring? Are you getting dwelling foundation and water damage endorsements or not?  Most companies (and I'm speaking of Texas) allow you to choose those options when you start your insurance plan (at an additional cost of course), but you can't add it on later should you decide you want it.  

Is your home being insured to value (100%) or just to 80% where you are responsible for the other 20% under the co-insurance provision? Do you have replacement cost or actual cash value coverage?  What about your loss of use coverage?  

All of these are things you definitely need to discover by doing your due diligence, asking questions, and taking your time while deciding on home insurance provider.  Price alone is not enough. 

AUTO INSURANCE 101: TO FILE OR NOT TO FILE

AUTO INSURANCE FOR DUMMIES

I get it all of the time ... "Why is my quote so high?  Why did my premium increase?"  The answer is fairly simple, though most things are often easier said then done.

Consistency is the key!!! If you want lower insurance rates, be consistent; pay your bills on time, don't cause accidents, don't get moving violations, don't settle for the limits of liability just to "get off cheap," and most importantly STOP SWITCHING COMPANIES EVERY SIX MONTHS!!!

When getting an auto insurance quote, there is "soft pull" on your credit to access your consumer history report, which can quickly identify trends in timely bill paying, accident or loss history report (claims filed) and previous insurance companies and coverages you've had on your current or past vehicles.

While we can't control reckless drivers, we can certainly control whether or not we follow simple, daily laws/rules to keep our own costs down.  Also, before you submit a claim keep in mind that insurance companies frown on drivers with multiple claims on their consumer history report.

Consider getting a few estimates, then determining if it is better to settle a claim on your own or between you and the other driver, without involving your insurance company.