How often should you review or bid your insurance? We are asked this question many times in a year. 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.
So 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 with expert information by their insurance companies that allows the agent to provide the best options for your insurance. Also it probably does not make sense to put your legal representation or medical care out to bid either.
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 does probably make sense to at least review your insurance program at least every three years, although an annual review could be needed as well. If you have 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 as well.
Probably the easiest option is to have your current agent arrange the review instead of taking many bids. 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 coverage issues and service issues that each agent can provide. Agents and carriers will want to know what chance they have 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 rewarded the business.
Ramey King is an independent, full service insurance agency which does business nationwide and is located Denton, Texas. We are committed to providing businesses, individuals, and families with steadfast risk management solutions. If you would like more information on this topic or other insurance issues, contact Jeff King at 800-453-9691 or jeffking@rameyking.com, or submit a request through our contact page.
