At Ramey King, many times in a year we will be asked this question. “How often should I bid my insurance?” While we live in a free market economy that allows a person to seek the best option to purchase various products from their vendors; the concept of a putting a product out to bid creates some interesting thoughts. First, private companies do not technically have to bid their insurance like certain public and municipal organizations so a private company may never want to bid their insurance.
But what is a good option to get the best insurance program?
Several years ago, one of our insurance carriers suggested using the phrase, “Consult your insurance agent as you would a doctor or a lawyer”. We are not assuming that insurance agents have the same lengthy training that a lawyer or a doctor has; but most people do not realize that their insurance agent has probably taken many insurance educational classes and is provided expert information by their insurance companies that allows the agent to provide the best options for your insurance. It probably does not make sense to put your legal representation or their medical care out to bid so why would insurance be any different.
Although a technical bid process may not be the best way to handle your insurance; depending on the size, complexity and overall changes that can happen to your business or personal account, it makes sense to review your insurance program at least once every three years, although at Ramey King we find that an annual review is ideal. If you work with an independent agent; the agent will be able to consult with several carriers to review both rates and coverages. A single carrier agent should also be able to review any changes to your insurance program.
When considering a insurance review, the easiest option is to have your current agent arrange the review verses taking many bids. At Ramey King, we have seen many agents and insurance companies actually back away from providing “bids” for insurance. The concept of a bid leaves the idea that the decision is based entirely on price. While price of insurance is very important, it is only part of the whole insurance issue. This may not allow for a professional agent to present the different coverages issues and service issues that each agent can provide. Agents and carriers will want to know what chance they have of being able to be considered for all of their merits beyond price. To develop a bid does take time and effort on the client’s part as well as the insurance agent and carrier. Time is money, so all parties want to make sure they have a good chance of being awarded the business.
Ramey King Insurance partners with Denton businesses and homeowners to provide the right type of coverage for their unique needs. For more details on these topics please contact Ramey King Insurance at 800-453-9691 to speak with one of our insurance specialists or visit our office at 320 Eagle Drive, Ste. 210, Denton, TX 76201.