Personal Insurance Blog

Independent Insurance Agents Save You Money!

Save_money_on_cheap_auto_insurance_with_Andrew_G_Gordon_Inc-2The following is a true story about one of our insureds. It asks the question of, “Why do use an Independent Insurance Agent instead of the companies that you can go online to write your own policy?”. Simple: we are here to help you get the best possible policy at the best possible price.

As I stated, this is a true story about my 29 year old insured who will be called Henry for the sake of this blog: Henry bought his first house and insured it through one of our companies last fall. He just contacted me to take a look at his auto policy so he could get account credits.

Henry has a 6 month policy with Progressive with limits that would not cover him for much at all. We
quoted the same limits with Commerce and the savings were huge. However, we wanted to write Henry
with limits that would actually protect him in the event that he had an accident; his current policy did not
even give him collision coverage!!! We do have a policy for him that is an annual policy and the premium
is not much more. The bottom line is that you can “make your own policy” but do you really know what
you are making? Henry did not realize that his limits were as bad as they were because he is not an
insurance professional. I will say that he is extremely grateful to know that he is insured to better limits.

If you have a policy with another carrier and would like us to take a look at it, please feel free to give us a
call or send an email, we would be happy to help you make sense of your insurance!

We at Gordon Insurance are here to help. :)

Below is the breakdown of the policies:

This is the policy he sent me that he has with Progressive – it is a SIX MONTH policy:
Bodily injury to others – 20/40 – Premium $342
Personal injury protection - $8K with $250 deductible – Premium $48
Bodily injury caused by an uninsured auto – 20/40 – Premium $6
Damage to someone else’s property - $10K – Premium $268
Optional bodily injury – 20/40 - $1
Comprehensive - $1K deductible and a $100 glass deductible - $184

TOTAL PREMIUM FOR A 6 MONTH POLICY = $849 If this was a 12 month policy, the premium would
be $1,668 IF the company did not increase the policy in the second six months; however, they always
do. Please make a note that he has NO COLLISION coverage for his 2012 car, that his property damage
limit is only $10K which is well below the price of one car, that he has 20/40 optional bodily injury
coverage which does not do much at all in case he harmed somebody else. So, he basically has a policy
that will pay for next to nothing :(

This is the policy that we will write with Commerce - it is a TWELVE MONTH policy:

Bodily injury to others – 20/40 – Premium $174
Personal injury protection - $8K with no deductible – Premium $58
Bodily injury caused by an uninsured auto – 100/300 – Premium $15
Bodily injury caused by an underinsured auto – 100/300 – Premium $23
Damage to someone else’s property - $250K – Premium $255
Optional bodily injury – 100/300 – Premium $105
Comprehensive - $300 deductible and no glass deductible – Premium $153
Collision - $1K deductible – Premium $673
Henry is SDIP so is paying an additional $592 in surcharges

TOTAL PREMIUM FOR A 12 MONTH POLICY WITH VERY GOOD LIMITS = $2,075

This is a policy that is only $412 more for much more coverage and does include Collision Coverage – he did not have Collision at all with the “build your own policy” and his car is a 2012.

Just an aside – we quoted his policy with Commerce with the same exact limits that his current policy
has and it was $891 for 12 months. So, apples to apples, Commerce would have saved Henry $807 for
the year!

Check out our auto insurance pages to see what you might be missing out on, and contact us with any questions! Check out this blog for more info on independent insurance agencies!

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