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. 

COUNTING DOWN THE BIG FOUR - #3 Allstate

THE ALLSTATE STAND

Topping the list at #3 (was #2 last year) is Allstate.  When I'm making sales calls, many of my potential clients tell me I sound like the "Allstate Man" (Dennis Haysbert) and actually mistake the company I work for that very reason.  Most folks recognize Haysbert as well as Dean Winters (The Mayhem Guy), but may not know much about the history of one of the more reputable insurance companies. 

Allstate at a glance: 

• Founded by General Robert E. Wood in 1931 (Sears, Roebuck, and Co). 
• Trained women to be insurance agents in 1942 (military leave for men). 
• Opened first claims office in 1952.
• Allstate Foundation started grants program to train driver's ed. instructors. 
• Neighborhood Office Agent Program launched in 1984. 
• Began publicly trading in 1993. 
• Currently #92 on the Forbes Fortune 500; $123.5B in total assets.
• 12,000 Agent offices in the US and Canada; 70,000 employees/staff.
• Allstate branding includes Encompass and Esurance. 

COUNTING DOWN THE BIG FOUR - #4 Progressive

Ever wonder where insurance companies rank with the rest of the business world? Many think of insurance as a scam and therefore look for the cheapest way to make sure they have the minimum amount of coverage needed by law.  We've all been there; price is the determining factor for lots of shoppers.

Don't forget to think about company history, assets, net worth, etc. when choosing an insurance company.  Also, think of the access you have to live people should you need to file a claim or simply get an insurance document you may need.

The "Big Four" insurance companies pretty much offer the same basic products, but not all coverages nor companies are the same in how they actually protect you.

PROGRESSIVE

Quick facts about Progressive Insurance:

• 1937 - Created by Joseph Lewis and Jack Green 
• 1991 - 1st to use consumer's credit history; more accurate policy premiums
• 1995 - Website launch; 1st major insurance company to do so
• 1997 - Real time insurance offered online; another 1st
• 2009 - Name your price introduced
• 2010 - Android App released
• Currently #157 on Forbes Fortune 500; $24.4B in total assets
• 450 offices country wide; 25,000 employees

TERM VS. PERM - The Debate Goes On

People often cringe at the thought of not being around anymore, i.e. death.  What should be more scary is what happens to your spouse, children, and estate WHEN you don't come through the doors one day. There are many ways to take care of your loved ones from the grave. Life insurance is a great way to provide large sums of money without "on the cheap."  

The growing debate is whether to buy permanent (whole or universal) life insurance or temporary (term) insurance and invest the difference of the two.  Here's my two cents: 

The younger you are, the wiser it is to purchase permanent life insurance.  Those with young children should also purchase a policy for their child not for the death benefit (although you never know) but for the living benefit and financial growth.  That's another topic altogether.  

My suggestion is to have both types of life insurance, but to not "over-insure" yourself.  Think about it like this, would you want your loved ones to have to pay off a car and home if you owe on both when you expire?  

A 30 year term policy is a cheap way of covering both your home and auto(s) should you die unexpectedly.  If you own your  home outright, but have a loan on your vehicle, a 5 year term policy makes sense should anything happen to you during your loan period. 

Younger people who may actually take a moment to read this, you're getting older each day and the cost of insuring your life gets more and more expensive each year.  #thinkonthat

ASK THE RIGHT QUESTIONS TO MAKE THE BEST DECISION.

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! 

WHAT'S YOUR AUTO INSURANCE SCORE?

KNOW YOUR SCORE! 

"Why is my quote so high?"  If I had a dime for every time I heard that ... Your auto insurance score is quite similar to a credit score.  It is calculated by analyzing your credit file. Auto insurance scores can vary by credit reporting bureau, and factors heavily in determining your auto insurance rate.

Usually there is a direct correlation between people with good credit scores and good auto insurance scores. Just as a low credit score indicates a risk to creditors, a low auto insurance score pretty much says you're more likely to file an insurance claim, resulting in losses for an insurance company. 

Credit Karma provides both scores (auto insurance and credit) directly from TransUnion, one of the three major credit reporting agencies. Like the other scores available through Credit Karma, the auto insurance score is completely free to members.

LIFE INSURANCE ON THE JOB: My two or three cents

IS YOUR FAMILY PROTECTED?

At least five to ten times per day, I have a conversation (albeit usually very brief) with someone regarding life insurance and the potential need their family would have in the event they suddenly don't make it home for dinner. 

I totally understand that most people cringe at the thought that one day they will no longer live and breathe as they currently do, but one thing is for certain we all get a "certain" amount of time here and that time can't be figured out by any algorithm I've ever been privy to.  

The name of the game is making sure your family can continue their same lifestyle should either of the main bread winners make an early, unexpected exit from this life.  Having life insurance at work is a GREAT start! You usually get a pretty good price (if not free) on the coverage and usually one to two times your yearly salary.  

Sounds like a sweet deal on the surface, but the moment you leave that position you no longer have coverage and if you stayed three to five years, you are now that much older when it comes time to rate you for your next life insurance plan. 

How do you combat this issue?  Make sure you have permanent life insurance outside of your employer and make sure you begin that coverage as early as you can to take advantage of the best possible monthly premiums.  Also, be sure you speak to an insurance agent about your options for coverage: term, whole, universal, term vs. whole, whole vs. universal, etc.

PROTECT YOUR ASSETS!

HOW'S YOUR COVERAGE?

How many are currently aware of the amount of money your auto insurance company would pay out in the event that you caused a multiple car accident with injuries or fatalities? 

Your limits of liability (and they vary from state to state) determine the amount of damages (both property and bodily) your insurance company would pay in the event you are at fault in an accident.  

Think about that the next time you look at your insurance ID cards or policy, then think about what your net worth is and/or how much you and/or your spouse bring home each year in salary.  

If your liability limits are not at the point of protecting your net income, you may want to schedule an insurance and financial review with your insurance agent ASAP!  Don't have one, then it's time to re-think that as well.  When it comes to insurance, cheaper usually doesn't mean better and having a local agent is much more beneficial than spinning your wheels speaking to an insurance novice at a 1-800 call center.