For my first post, I want to define the method of delivery for insurance products.  There are three main ways to purchase insurance.  You can go direct to the company.  There are companies that market online, or on tv, that have a 1-800 number to call, or website to click.  They will provide quotes for the coverage you think you need, and will sell you that coverage.  The problem arises if it doesn’t actually cover the assets and risks that you need it to cover.  One of my favorite quotes I heard recently "Saving 15% could cost you everything you own".  Scary, but true!

The second method of delivery is going to a direct writer.  These are insurance agencies, usually local in your area, that write for one specific company.  They will quote your coverage, hopefully counsel you on the coverage you need, and sell you the coverage you ask for.  There’s nothing wrong with these agencies, but they do have limited options only writing for one company.

The third, and in my opinion, best way to purchase insurance is through a local Independent Insurance Agency.  Yes, I’m slightly biased given I work for one, but I truly believe it’s the best method … and here’s why.  Independent Insurance Agencies work for you.  They are licensed with several different insurance companies which allows them to search the market on your behalf finding not only the best coverage, but also the best price.  I put price second because it really is a secondary concern.  You could pay $50 a month for car insurance, but if it doesn’t have the coverage you need when you have a claim, that policy you paid for is just a piece of paper.

Don't get me wrong – money is important, especially in this economy.  I just read this morning that Michigan’s unemployment level has jumped again to over 15%.  That’s huge!  People need to cut back in order to pay their bills.  There are some things however, that you shouldn’t cut back on - not only because it puts your financial future in jeopardy, but it usually doesn’t save that much money anyway.

If you have concerns about your coverage or your premiums, call your independent agent to review your policies.  They are there for you, to help you make the right decisions to protect your future.