Auto Insurance: Online vs. Agent: Which is Right for You?

If you know your way around the Internet and you want to shop and compare auto insurance prices quickly, you are not alone. More than 21 percent of all new customer insurance sales were processed entirely online in 2008.

While shopping for car insurance online offers convenience and a minimal time commitment, traditional car insurance shoppers believe that the cons outweigh the pros. For some shopping exclusively online is too impersonal. And for others, the lack of a live person makes them uneasy, especially when it's time to make that first payment or sign on the dotted line. But shopping exclusively online may have another drawback that has little to do with personal feelings and more to do with coverages and insurance laws.

According to Jana Bell, Director of Operations at HomeInsurance.com, "Customers who work with a licensed agent before purchasing their auto insurance policy have a better chance of finding the right coverage and qualifying for all available discounts." Bell goes on to state that, "State and lender requirements vary per customer and a licensed consultant is there to ensure you get the most appropriate coverage for your needs."

The decision to shop for auto insurance online or through an agent may very well come down to personal preference or even savings, but fortunately for those undecided there is a happy medium. Customers that wish to shop and compare the rates of several different auto insurance carriers can compare quotes online and via email initially. Once you have decided that a particular product might be a good match for you, you can call a local agent with any questions or concerns you may have. The insurance agent will cover all bases, then finalize the transaction for you and will be your contact person throughout the life of your policy.

Source: autoinsurancetips.com, Michelle Burton

Insurance and Inflation a Difficult Mix

In November of 2010, the Federal Reserve bought the equivalent of 20% of the US money supply in bonds in an effort to loosen credit in the market. The medium to long-term effect of this "quantitative easing", as it is called, is a likely equal amount of inflation.

Inflation has many casualties, but one of the sectors most seriously harmed are those being insured. High, persistent inflation grievously harms the insurance policy holders as it diminishes the real value of their policies over time. Insurance is a contract in which money is paid today in expectation of return of a greater amount to cover a named risk at some uncertain future date. That named risk has a value to the insured, generally related to the amount it will cost at a future date to heal the damage related to that risk.

For example, fire insurance is paid when one's house burns down. The idea is that the amount of the insurance payment should be reasonably related to the cost of resolving the damage at that future date.

Long-term insurance can be significantly damaged by inflation. In an environment of high inflation, say 20% or more a year, the amount that would be necessary to cover the future risk will be much higher than in a non-inflationary environment. Also, because inflation may vary considerably from year to year, the cost of that uncertainty is higher.

Powered by SEO TOC 1.7.3

During high inflation, premium costs go up well before the salary and wages of the insured. The higher the expected rate of inflation, the greater portion of current income must go to cover the future risk, and the less certain that the coverage will be sufficient.

Shorter-term risk is hardly affected by the rate of inflation. However, life insurance and other longer-term policies with expected payment in thirty of forty years approaches being unaffordable and economically destabilizing to families.

Source: Capital Flow Watch and capitalflowwatch.com

Property & Casualty Coverages: A Primer
 

Any business and industry is exposed to a variety of different risks and exposures to navigate. Similar to a grocery store that stocks its shelves with a broad selection of choices, property and casualty insurance offers a wide range of coverage and options to protect a small business. Some examples include general liability, property, automobile liability, workers compensation, employment practices liability, umbrella and many more.       

In some cases, business owners have all the property and casualty knowledge required and prefer going directly to an insurance company to meet their insurance needs. A significant number of business owners, however, need the knowledge and experience of insurance agents to help determine the right coverage for their business.
 
Not to be overlooked is the importance of viewing an insurance program as an investment, not an expense. Property and casualty insurance provides a business, small or large, a way to protect assets and the future of the company.

It is important for business owners to have frequent dialogue with their insurance agent to make sure that the current insurance program-or the new program if it is a start-up company-accurately and adequately covers all of their business assets. In addition, when a company changes its operations, they should be aware of how those changes may affect their insurance program. The purpose of property and casualty insurance is to have it respond when it is needed. If the business is not accurately portrayed, an insurance company could potentially deny a claim and, furthermore, cancel coverage. A business owner should review any changes annually in operations and make sure that everything is accurately reflected within the insurance program.
    
From a contractual viewpoint, most companies are required to carry specific property and casualty coverage before performing work for or along with other companies. If a company fails to secure these coverages, it could result in lost business. When starting a new company and a creating business plan, it is never too early to consider reviewing property and casualty needs for the industry that is being entered. 

Source: Todd Heitshusen, ithinkbigger.com