ALLCHOICE Insurance :: Blog

J.D. Power and Associates has released its 2009 Insurance Shopping Study, and for the second consecutive year Erie Insurance has taken the top spot for new auto insurance buying experience.  While Erie Insurance may not be a household name throughout the country, they have a strong presence in the Northeastern United States.  The evaluation is based on 3 main categories: distribution channel, price, and policy offerings.

To fully appreciate Erie’s accomplishment, it is important to understand a little about Erie Insurance.  Erie is considered a Regional Insurance Company as they only offer insurance in 13 states.  Compare that to the “Big Three” in the insurance industry (State Farm, Allstate, and Nationwide)which do business across the entire country, and you have the classic “David vs. Goliath” scenario.

Chances are, even if you happen to live in a state Erie provides insurance in, you still haven’t heard of them.  The fact is Erie chooses to offer its products and services the old fashioned way, through local agents.  There are no flashy commercials, or mascots, just hard working professional insurance advisors who take the time to learn about and take care of their clients.  While the distribution channel is only one of three criteria, this delivery method must make the biggest impression on consumers.

Price and Policy Offerings are the other two criteria by which consumers ranked auto insurers, policy offerings do not vary too widely between carriers and price has been proven to hold only a certain modicrum importance.  Yes, Erie Insurance does provide a quality insurance policy to its customers, there are only so many “widgets” that the regulatory bodies approve of.  While Erie does offer a competitively priced insurance policy, they have never been considered a low cost leader.

The focus of this regional gem is to provide their customers with properly crafted insurance plans (most customers maintain home insurance and other lines such as commercial insurance and life insurance), at affordable prices, while maintaining the best possible customer and claim service.  By relying solely on an Independent Agency Force of professional advisors, Erie sets itself apart not by turning insurance into a commodity like many national carriers, but rather by focusing on what the customer really needs.

In an age where our society is a “click” away from any and everything, Erie and their agency force are a breath of fresh air.  While some things are best purchased via the internet or big call centers, a family’s insurance plan is better left in the hands of professionals.  Lets face it, people like to know that when they have a question, they know they can call or stop by and meet someone local.  People want professionals to handle their most important issues.  They want a doctor to help them when they are sick.  They want a dentist to take care of cavities.  And yes, people want an Insurance Professional to handle their insurance.

About the Author:  Jack Wingate is an Insurance Professional and founder of ALLCHOICE Insurance, in Greensboro, NC.  For more information about Jack Wingate, ALLCHOICE Insurance, or Erie Insurance please visit http://www.allchoiceinsurance.com

From all of us at ALLCHOICE, to all you fathers…Happy Father’s Day.

Recently a business associate / friend was blessed with his first child.  I was fortunate enough to have daily discussions with him leading up to birth.  While I do not like to consider myself “old”, for the most part, most of my peer group have stopped having kids.  Hearing my friend talk about the good and bad times leading up to birth brought back memories.

The time leading up to the birth of your first child is both exhilarating and scary.  You are experiencing new things each and every day.  However, since this is the first time you have experienced such a monumental undertaking, you thoughts are inundated with thoughts and feelings of doubt.  “Will I be a good parent?”  “Will I provide for my family financially?” “How will I provide for my family?”  The list goes on and on.

The fact is, as a first time parent, you have a different set of responsibilities.  As a young person / couple the last thing in the world you would think about is the need for life insurance.  When a person is in his / her twenty’s, there is a feeling of immortality that exists.  However, there is one constant in this life, you are going to face death at some point in time.

Now, as a new parent, you are not only responsible for yourself, you are now responsible for making sure that new little bundle of joy has a future.  Given that we will all face death, and that the loss of your income due to premature death could cripple you new family, life insurance should be the first thing you purchase once that little one is born.  Of course, you are thinking that you now have diapers, formula, clothes, and many other things that will add to your expenses, and that the last thing you need is something else to take your money.

I now ask you to think about all the extra expenses you and your family are faced with given your new addition!  Would those expenses stop if you passed away?  Are those expenses going to decrease at any point during the first 16-20 years of that baby’s life?  I hope that you answered both of those questions with a resounding “NO”!  Take it from a father of three, the expenses never decrease.

Life Insurance is that “ounce of prevention” that can make the difference between little Johnny or Julie having the future you dream he/she could have, and a life filled without a parent and/or hope.  While having some life insurance is better than having no life insurance, please do not make the mistake of just buying a life insurance policy.  The key to building that foundation of hope for your child is having the correct life insurance policy.

The most important aspect when purchasing a life insurance policy is to buy the right amount.  While there are many online resources that will help you determine the amount of life insurance a person needs, the best thing for you to do is consult a Professional Advisor.  Now, there exists a stereotype with regard to life insurance salespeople.  Many people feel the these professionals are only concerned with selling you most expensive policy they can.  This may be true of some, this is not the norm.

A professional advisor should be concerned with providing you the right amount of protection at a cost that is affordable.  The best way for you to purchase life insurance is to determine the amount of money you can afford to pay, then build a life insurance plan that will fit your budget.  If your budget allows you to purchase the amount of coverage you need fully in permanent coverage then do so.  If you budget allows you to purchase the amount of coverage you need partially in permanent and partially in term then do so.  If your budget only allows you to purchase the amount of coverage you need in Term, you guessed it, then do so.

There are many types of plans, and some “TV Experts” will tell you how any plan other than Term is wrong, I will tell you that any time you can afford to purchase permanent insurance, you should.  Think of the difference between Term and Permanent Coverage in this regard, Renting vs. Owning.  However, when prompted to tell someone what the very best type of life insurance coverage is, the truth is simple.  The very best type of coverage a person can own, is the one that is in force at the time of death!

Being a new parent is exciting.  Being a new parent is scary.  Buying life insurance to protect your family’s future is easy!  Don’t procrastinate, call an advisor today.

About The Author:  Jack Wingate is a Professional Insurance Advisor and Founder of ALLCHOICE Insurance.  For more information about Jack Wingate, ALLCHOICE Insurance, or protecting your family’s future with a properly structured life insurance plan, visit http://www.allchoiceinsurance.com

Health Care reform has been a hot item starting prior to the most recent Presidential Election.  The Obama Administration, has now moved Health Care Reform to the forefront of their agenda.  Regardless of your political affiliation, the obvious facts are that Health Care Costs have continually increased over the last decade.  How should the problem(s) be resolved?

The average person who favors government intervention with Health Care Reform believes that the reform needed is with Health Insurance.  Be careful not to confuse Health Care Reform with Health Insurance Reform.  The two issues should be completely different, but it seems the Obama Administration has focused their energies in solving the Health Care Issue by focusing on Health Insurance.

While there have been few specific plans for the administration’s reform, many experts believe that the reform will involve a major involvement from the government.  While there are factions in this nation that favor a “Nationalized Healthcare System”, there is equal opposition.  Unforunately, the public divide seems to rest within the “class system”.  A majority of those families and businesses in the upper-middle to upper class oppose a nationized system, while the lower-middle to lower class favor a Nationalized Plan.

I say to those that favor a Nationalized Plan, be wary of what you wish for!  The problem with the divide actually resides with education and communication.  Too often, those in the lower portion of the class system have been conditioned to believe the Insurance Companies are the big, bad profit mungers that cause your premiums to increase.  Let’s be frank, insurance companies are in business to make money.  However, if you take a look the profit margins within most Health Insurance Carriers, you will see that most are lucky to achieve a 10% profit.

If the problem with our Health Care System is not with the Health Insurance Carriers, then where should the blame go?  Unfortunately, there is no one cause for the skyrocketing cost of Health Care.  Rather, there are mutlitude of issues that have caused our Health Care System to become the inefficient beast you see today.  There is no one “magic” pill that will fix our system.

If you take a step back and analyze our system as whole, you have to concur that we have the BEST Health Care Services in the world.  If this were not the case, then why would the world’s wealthiest people fly around the world just to have their medical needs taken care in the United States?  The fact is, wealthy people who live in countries with Nationalized Health Care Systems do not trust those Health Care Providers with routine procedures, much less the more complex ones.

So if we can agree that the Health Care Professionals and Facilities are the best in the world, then you should further assume that those individuals providing that care are deserving of whatever money they make.  For my part, I want the guy who is about to open my chest up to perform heart surgery to be paid like a surgeon, and not a garbage man.  So how do we fix our system?

The first thing is to focus on the real problem.  The real problem is with the inefficiencies present in the system, not with the Insurance Industry.  There are cost savings available through the efficiencies that can be made through the use of technology.  By gaining the cost savings within the system itself, Health Care Providers (not the actual Professionals) do not have to charge as much money.  That means the Health Insurance Carriers do not have to pay as much to the Providers.  Guess what!  That means the Health Insurance Carriers do not have to charge as much in premium.  Finally, Joe & Jackie Blow do not have to pay as much for Health Insurance!

President Obama, focus on the real problem of fixing our system, and Health Insurance Premiums will become more affordable.

About The Author:  Jack Wingate is a Professional Insurance Advisor and Founder of ALLCHOICE Insurance in Greensboro, NC.  For more information about Jack Wingate, ALLCHOICE Insurance, or Health Insurance visit http://www.allchoiceinsurance.com

If you are like most people, the economy has taken a toll on your finances.  The fact is more and more people are trying to find ways to cut expenses.  Would you like to know a few simple changes you can make to your North Carolina Auto Insurance?

Do You Need “Full Coverage”?

In order to determine whether or not you need “Full Coverage”, first we must define what “Full Coverage” is.  If you ask 10 different people, you are likely to get a number of variations as to what “Full Coverage” means.  For our purposes, “Full Coverage” means having both Comprehensive and Collision Coverage.  In North Carolina, you can add additional coverages like Towing & Labor Coverage and Rental Reimbursement.  I view these are “extras” that work in addition to your “Full Coverage”.

To start with, if you are currently financing a vehicle, your lender requires you to maintain “Full Coverage”.  For those of you that do not have financing, you have some decisions to make.  Here are some questions that will help you determine if you NEED “Full Coverage” Auto Insurance:

• Model Year – I often see people maintain Full Coverage on automobiles that are 15 years old, or older.
• Current Value – Do some checking, there are a number of sites that will tell what your car is worth, if your car is valued below $5,000, you should think about your NEED for Full Coverage
• Financial Status – This may seem counter-intuitive, but a person with a lower Financial Status should consider keeping Full Coverage on a vehicle.  The theory is that if the replacement cost of your car is more than you could come up with in a short period of time, you should maintain Full Coverage.

These are the major questions you should ask yourself with regard to your NEED for Full Coverage.  Of course, each individual has their own needs, so please consult a knowledgeable agent to help you with this decision.  The facts are, for most auto insurance policies, the “Full Coverage” portion of you policy is about 50% of the total premium.

Raise Your Full Coverage Deductibles

When the Theory of Insurance was first established, insurance was meant for Catastrophic Protection.  Today, most people look at insurance as a way to make their lives easier.  You will save money on all insurance premiums if you can adopt a “Catastrophic Viewpoint” with regard to your insurance coverages.

Comprehensive Deductible

The Comprehensive portion of your Full Coverage is less expensive compared to Collision.  Many people carry deductible of $0, $50, and $100.  If you want to save money, consider increasing your deductible to $250.  Of course, you can go higher, but most comprehensive claims will be $500 or less.  There is a good possibility that if you go to a deductible of $500 or greater, you could deductible yourself out of a coverage.

Collision Deductible

This is where you can really see some savings.  Again, I am amazed at the number of people I see that carry Collision Deductibles of $100 & $250.  With the car of today, if you are in an accident that requires your collision to kick in, there is a great chance that the total damage will exceed $500.  In addition, $500 is an amount that most people could come up with in the case of an emergency.

Know Where To Cut Coverage

If you will take an honest look at the questions posed above and alter your Deductibles a little, you can see some meaningful savings with your North Carolina Auto Insurance. Unfortunately, most people just try and slash their policies down to the bare minimum.  I urge you to avoid this!  Never cut your liability limits.  If anything, you should review your Liability Limits to make sure that you have enough coverage (most people don’t).  The last thing you want, or can afford, is an “at-fault” accident where your liability limits are not sufficient.

About The Author:  Jack Wingate is a Professional Insurance Advisor and Founder of ALLCHOICE Insurance in Greensboro, NC. For more information about Jack Wingate, ALLCHOICE Insurance, or North Carolina Auto Insurance please visit http://www.allchoiceinsurance.com