My morning was filled with talk about car insurance. Our local CBS morning show did an interview with a Consumer Reports spokesperson about car insurance and the “hidden” costs. Those of you who regularly read HVA’s blog are aware of the fact that insurance companies base your car insurance rates on many different things – your driving record, where you live, how far you commute to your job, and your credit score. So today’s great unveiling of the use of credit scores should not have been a surprise to you. This blog isn’t for our frequent readers, today’s blog is for those of you who are currently using a captive agent or have purchased your insurance online without the help of an insurance agent.
Insurance companies that employ captive agents (Allstate and State Farm are good examples) or direct sales ( an example is esurance) cannot offer you the same service as an independent insurance agent. When you purchase your insurance through a captive agent (every time I type the words “captive agent” I picture an insurance agent behind bars and it makes me smile) your choices are limited to what that agent’s insurance company offers and your rates are based on a nationwide loss ratio. That means that the insurance company must base their rates on the entire nation and not just the state or region where you spend most of your driving time. Drivers in Louisiana, Oklahoma, and Michigan pay higher premiums in part because they have more car insurance claims that insurance companies have to pay out on and this causes their New York state drivers to pay higher premiums. I don’t want to pay for Louisiana’s losses, do you? I also don’t want to pay for their large advertising budgets.
Online insurance companies are also basing their rates on the entire country and they ask the consumer to navigate the maze of coverage without an insurance agent to guide them. If you know absolutely nothing about car insurance then how are you supposed to know the amount of coverage you need to carry? So purchasing your insurance directly from an insurance company does very little for you, but it does wonders for the insurance company.
There really is only one way to ensure that you have the correct amount of insurance coverage at a cost that reflects the area in which you live and drive – go to a local, independent insurance agent like Hudson Valley Agents. HVA works with many New York state based insurance companies and you have an actual live person who works as your personal advocate with the insurance company. If you have questions about your policy all you have to do is pick up the phone and you’ll have answers from a person who actually knows your name. You may not have heard of some of the insurance companies we work with, like Mapfre or Preferred Mutual, are not spending their money on advertising and why should they? They are insurance companies with a stellar record and they are only a small portion of the different companies that Hudson Valley Agents works with.
When it comes to low cost NY insurance with great coverage the only choice anyone really has lies with an independent insurance agency. Hudson Valley Agents is family owned and has been in business in the Hudson Valley for 25 years. Let them put their experience and their reputation to work for you, I promise that you won’t be disappointed. When you put your insurance needs into the hands of a captive agent or the internet you end up paying for coverage you might not need and for the loss ratio of the entire United States. The choice is a no-brainer.