Why Did My Maine Auto Insurance Go Up?

Posted on by admin

 

You’re a careful driver. You haven’t had an accident or a ticket in years. You drive the same old car. Maybe you drive less because you retired, or bike to work. Why did your auto insurance price go up?

It’s not just you. Average US auto insurance rates increased by about 11% the 5 years from 2011 to 2016. Maine’s rates remain among the lowest in the nation, but so are our incomes. Fortunately, your personal behavior and situation greatly affect your car insurance costs. You do have some control over what you pay for car insurance.

Why Did My Car Insurance Increase?

You Had an Accident

Insurance companies charge more after an accident – some even charge if the accident wasn’t your fault. That’s because insurance data shows that if you’ve had one accident, you’re more likely to have another than someone who hasn’t had any. Some insurers charge for 3 years, some as much as 5.

You Got a Ticket

Speeding tickets and other moving violations flag you as a higher accident risk to insurance companies. Some insurance companies don’t charge for the first ticket, but they charge for the next, and even more for any future tickets. As with accidents, different insurers surcharge your policy for 3 or 5 years after a violation.

You Have a Young Driver

Inexperienced drivers have more accidents, so they cost more to insure – at least until they can establish a good record. If your child recently got their license or permit, expect to pay more for a few years. Insurance companies do offer discounts for honor roll / dean’s list students,  students who are away from home without a car, and those who passed a driver’s ed course. Check with your agent to be sure you’re getting the discounts you deserve.

Related Post: How Much Does Car Insurance Cost for a 16-year-old in Maine? 

Your Credit Score Recently Dropped

Drivers with excellent credit tend to pay less than others. Insurance records show that they file fewer claims than those with lower scores. Credit score impacts your “insurance score”, which almost every insurer in Maine uses to set your rate. Some insurers review your score every few years. Others freeze your score when you apply, unless you ask them to re-run your score. If your score isn’t as good as when you started your policy, your car insurance may go up. Each insurer uses a different formula for insurance score. Talk to your agent to see if your current insurance company is still the best value.

Your Insurance Company Has Lost Money

Overall insurance company results affect your rates, too. Insurance pools the experience of your neighbors with yours. That’ good, because it reduces your risk and limiting your expense to a budgetable amount. It’s bad if your insurer has paid so many claims for other people that it affects your rates.

Insurance companies are good at estimating claim expenses. But, they’re not perfect. A large hail storm, or unexpected factors (like lower gas prices) can catch them off-guard. Some years, your insurance company pays more in claims than they collect in premium. If they do that for too many years, they must increase rates to collect enough to pay future claims.

Related Post: What’s Causing U.S. Auto Insurance Rates to Go Up?

Your Insurance Company Thinks You Drive More Than You Do

How you use your car affects your car insurance rates. When you started your policy, your agent asked whether you drove to work and how many miles a year you drove. If you’ve since changed jobs, retired, or commuting a different way, call your agent.

Some insurers offer custom rates if you allow them to monitor your driving. The savings can be considerable: as much as 30% if you drive very few miles. Contact your agent if you’re interested in learning more about these pay-as-you-drive plans.

How Can I Reduce My Auto Insurance Costs?

First, drive safely. A clean driving record is the best way to control your auto insurance price. Here are some others:

Should I Shop My Car Insurance?

If you live in Southern Maine, contact a Noyes Hall & Allen Insurance agent for a review at 207-799-5541. Not ready to talk to a human yet? You can still compare prices from up to 6 Maine auto insurance companies online on our web site.

When you chat with us, we can provide personalized, custom, professional advice. As a Trusted Choice insurance agent, we are independent and committed to you.

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When should I drop comp & collision coverage-When a great car insurance quote isn't.

Moving or Relocating to Portland Maine: How to Register a Car

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If you’re moving or relocating to Portland Maine, you’ll be eager to take care of business once you’ve settled in. Well, maybe not. But, you’ll feel better after you do it. You’ll need to get a Maine driver’s license and register your car in Maine within 30 days. Here are the steps.

Step One: Get Maine Car Insurance

Maine requires every vehicle owner to have insurance. This, and our mostly rural character, makes cheap auto insurance a way of life. Maine has the lowest average car insurance costs in the U.S. 

Shopping for car insurance isn’t as bad as you think. Nobody does it for fun, but it will go faster if you have your old policy information handy.

If you’re looking for Maine auto insurance and live in Southern Maine, we can help. As an independent agency, we offer a choice of many insurance companies at once. You can get up to 6 Maine auto insurance quotes online in 10 minutes, or call a Noyes Hall & Allen agent to get your quotes.

Step Two: Visit City or Town Hall

(maine.gov photo)
(maine.gov photo)

Take your insurance card and your out-of-state title and registration to your local municipal office. Note your vehicle mileage. You’re going to need that to register. They’ll collect excise tax, a type of vehicle property tax. Excise tax is based upon the age and “cost new” of your vehicle. If you call ahead, your city or town can tell you how much your excise tax will be.

Most Maine cities and towns including Portland, Falmouth, South Portland, Cape Elizabeth, Scarborough and Westbrook provide standard Maine license plates. If you want vanity plates, order them from Maine BMV.

Step Three: Get Your Maine Drivers License

Maine Bureau of Motor Vehicles issues drivers licenses. As long as your out-of-state license is valid and your name hasn’t changed, it’s easy to convert it to a Maine license. You’ll need to:

  • Provide proof of residency (your auto registration should suffice)
  • Take an eye test
  • Turn in you old license (sorry, we know that picture was your favorite)
  • Pay a fee.

Greater Portland area Bureau of Motor Vehicle Branch Locations:

Maine BMV Portland: 125 Presumpscot St. 04103  207-822-6400

Maine BMV Scarborough: 200 Expedition Drive, Suite G 04074  207-883-2596

Do I Have to Get a Maine Inspection Sticker?

Yes, but maybe not right away. If you have a current inspection from another state, you’re not required to get a Maine State auto inspection until that expires. A lot of people do it at the same time as registration to make it easier to remember to renew both. Maine registration and inspection each last for a year.

Don’t Forget to Insure Your “Stuff”

Many Portland Maine landlords require proof of renters insurance. Even if they don’t it’s a good idea to protect your belongings from fire, theft and other disasters. We can quote Portland Maine renters insurance in 10 minutes or less. When it comes time to buy a home in Maine, or if you have questions about Maine insurance, we’re here to help. We offer a choice of several preferred insurance companies. We’re independent and committed to you.

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Beware of “Teaser” Maine Homeowners Insurance Quotes

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One of our employees received this solicitation from a competitor. It quotes a homeowners premium of $409 per year. That’s hundreds less than they pay now. How can that be? Is this “bait and switch”? Like most of these offers, if it sounds to good to be true, it probably is. The answers are in the fine print.

Example: 6 Cheap Homeowners Insurance Quote Tricks

Beware of "teaser" homeowners insurance quotes!
Beware of “teaser” homeowners insurance quotes! (click to enlarge)

1. Using the “Perfect Profile”

Every insurance company uses personal information to provide an accurate quote and policy for you. This may involve your insurance history, your insurance score (similar to a consumer credit score), your occupation and more. If you get a quote out of the blue without giving any of your information to anyone, you’re getting a generic quote, probably containing the absolute best rate, reserved for the theoretical human who fits the perfect profile. No one gets that rate.

2. Quoting On the Tax Assessor’s Value of Your Home

Tax assessments have nothing to do with insurance. Towns and cities revalue every several years to create a “just baseline” to compare properties for tax purposes. If it’s been years since the last revaluation, the figure is probably low. Assessed value has nothing to do with the cost to rebuild your home. Assessments are roughly based on market value, which is affected by location, condition, and acreage.

After a disaster, you want to have enough insurance to rebuild your home. Insurance companies want that, too. That’s why they require you to insure 100% of replacement cost. Usually, assessed value is far below your home’s replacement cost. For example, this home’s replacement cost is 20% more than the quoted amount. If they called for quote, the insurer would take information about their home, calculates its replacement cost, and bump the amount by 20%. That would increase the price.

This insurance company knows all of that, but chooses to ignore it. The lower amount means a cheaper quote. It’s appealing – until you think about it.

3. Inflating Your Insurance Score                         superior-credit-quote

As explained above, insurance companies use scoring to price your insurance. The higher your credit score, the lower your insurance price. This quote assumes that you’re in the top tier of insurance scores. Even people with excellent credit scores may not make the “superior credit” status. So, when you respond to the solicitation, your price probably goes up.

4. Presuming Your Home Was Just Built

This home was built in 1972. The tax assessor’s document clearly says that. Why would the insurance company quote it as if it was new? Because there’s a “new home discount”. That makes the rate lower, until you call in. Oops, no discount for you.

5. Assuming You Move All Your Insurancemultipolicy-quote

It’s no secret that you can get a lower price with most companies by bundling auto and property insurance. You should absolutely talk to your agent about bundling to see if it makes sense for you. It doesn’t always. What if this company’s car insurance rates are terrible? What if you don’t meet their underwriting requirements? What if…?

Without a package discount, this quote could be 20% higher – or more. And, think about it: if this insurance company uses shady quoting tactics on your home insurance, do you really want to trust them will ALL of your insurance?

6. Have You Really Had No Claims in 5 Years?

Maybe that’s true, maybe not. Five years is a long time. Many people forget that they’ve had claims. You could think it’s true, until the insurance company runs their reports. That plumbing leak? The water backup in the basement? Oh yeah. Those count. And, they can change this quote considerably.

Looking for a Real Maine Homeowners Insurance Quote?

If you are looking for homeowners, condo or renters insurance in Maine, and want a thorough review and a realistic proposal for your coverage, contact a Noyes Hall & Allen Insurance agent. We’re independent, so we offer a choice of preferred insurers in Maine. Prefer to start online?  Get up to 6 Maine homeowners insurance quotes in 10 minutes on our web site. If that’s as far as you want to go, we won’t hound you later. But, we’re happy to answer your Maine home insurance questions.

When a Great Car Insurance Quote Isn’t

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We all see them. Those auto insurance solicitations in the mail, online or on TV. Some of them are really funny. Some promise lots of savings. How can you tell if they’re real or not?

One of our clients shared this mail solicitation from an insurance company looking to quote their auto insurance. The quote looked to be about half what they are paying now. After we reviewed it with him, the client was happy to stay with their current insurer. Here’s some of what we pointed out to them.

We’ve blanked out the information about the other company on the letter below. We’re not out to embarrass anyone. But, we share it so that you can look critically at the solicitations you receive. If it sounds too good to be true, it probably is.

6 Reasons Why This “Good Deal” Isn’t. 

img_2369
click on the image to enlarge it

1. You are “Pre-approved”

Read closely. It doesn’t say that you’re approved for the rate they’ve quoted. In fact, unless you’re a 45-year-old married man who drives a 2014 Subaru Impreza (which the recipient was not), and have very good credit, your quote could be a lot different. What you’re approved for is to receive this letter. Don’t you feel lucky?

2. “Average $446 per Year Savings”

Notice that “7 out of 10 drivers who switched saved money – an average of $446 per year”. A few questions leap to mind:

  • How many drivers are we talking about? Did 10 people switch, or 10,000? Who knows.
  • How many drivers didn’t switch? If 95% of people who went through the process didn’t change, is it worth responding to this flyer for a 5% chance of success?
  • Where do these drivers live? Ahh, the small print on the back says this is “national consumer data”. That makes a difference. Maine has the lowest auto premiums in the country, averaging $902. Per year. No insurance company is so consistently cheap that they save most people 50% on their car insurance. Even if this company does save you money, it’s unlikely to be anywhere near $446. It sounds good in the letter, though.
  • What about the 3 out of 10 who spent MORE money after signing on with this insurance company? The story doesn’t say. That’s probably not the outcome they wanted when they started the process, though.

3. $50,000 Per Person Bodily Injury?

Bodily injury liability insurance pays medical bills and pain & suffering for people you may hurt in an auto accident. It’s the only thing protecting your net worth from a lawsuit. $50,000 is the absolute minimum allowed in Maine. It’s also a lot less than the net worth of most 45-year-old married men driving 2014 Subarus. Did we mention that Maine’s Wrongful Death Statute allows up to $1,000,000 per person – 20X the limit this letter quotes?

Quoting $50,000 limits is a disservice to most Maine consumers. It makes the price look good, though. Maybe if you responded, the agent would up-sell you to higher limits (at a higher price). Or, maybe they’d just sell you the $50,000. Either way, you lose.

Related: How Much Liability Insurance Should You Buy? (Calculator)

4. $50,000 Uninsured Motorist Coverage?

This one’s arguably even worse. Uninsured Motorist is supposed to protect YOU and your family and passengers if you’re injured by someone who has little or no insurance. It pays the difference between the at-fault driver’s inadequate insurance limit and your UM limit. If you buy this quote, and are hit by someone with $50,000 liability coverage (which we’ve already determined is very low),  this policy provides NO UM coverage at all. But at least the price for “no insurance” was lower 7 out of 10 times.

5. Who Can Rent a Car for $20 a Day?

We don’t know of any national rental firm that charges less than $30 a day in Portland, Maine. And that’s for a compact car at the insurance company’s corporate rate. Granted, $20 is better than $0, so this is probably better than the Uninsured Motorist Coverage above.

6. Why a Six Month Policy?

Some insurers prefer to write a 6 month policy instead of annual, because:

  • They can adjust rates more frequently. If they file a rate change, the new rate takes effect after 6 months, not 12.
  • They can charge you for an accident sooner. Same logic applies. The surcharge is applied at renewal, which is 6 months instead of 12.
  • The rates look lower. In fact our client first thought this quote was half the price he was paying now. Turns out, because he has an annual policy, the price was almost the same. And, his current coverage was WAY better.

Related: What to Expect from Maine Auto Insurance Rates in 2017

There’s A Better Way to Shop for Maine Auto Insurance

If you are looking for a second opinion on your Greater Portland Maine car insurance, contact Noyes Hall & Allen in South Portland. We’re independent. That means we offer the choice of 9 preferred insurance companies. We’ll also take time to customize our proposal to YOUR needs, not some fictitious Impreza-driving-45-year-old married-male. We’ll recommend coverage for you and tell you why. You can choose whether or not it’s a good deal for you.

If you’re a self-service type, you can get up to 7 Maine car insurance quotes in 10 minutes on our web site. Don’t worry: if you don’t see anything that that rocks your world, we won’t hound you afterwards. But we’re always happy to answer any questions you have during the process.

RELATED POSTS:

Why do my car insurance rates keep going up-How much liability insurance should buy

Maine Auto Insurance: What to Expect in 2017

Posted on by admin

maine-auto-insurance2017

Last Thursday, we met with executives from 7 different insurance companies, one after the other. Every December, we invite our key company partners to review the year and plan for the next.

It’s a full day spent discussing trends, challenges and opportunities in the insurance industry. We learn a lot from the executives’ lofty perspective. They learn just as much from our “front line” reports. By the end of the day, trends usually emerge.

This year, increasing frequency and cost of auto claims concerns almost every executive. Their companies are paying claims faster than they’re collecting premiums. They can’t afford to do that for long. We haven’t seen this trend yet in our agency’s fairly small sample of Maine’s drivers. But it’s clear: we should prepare for rising auto insurance rates in the next few years.

Four Reasons to Expect Higher Auto Insurance Rates in 2017

  1. Fierce Competition Depressed Car Insurance Rates

The Great Recession put extreme pressure on many household budgets. Many insurers focused their advertising message on reducing prices. GEICO spent more than $1 billion a year on advertising. State Farm spent about $800 million. This extreme competition caused prices to remain level for years. Total industry premiums remained flat from 2006 to 2009.

2. People Are Driving Again

While the economy was slow, driving decreased. Americans drove fewer miles 3 out of 4 years from 2008 to 2011, due to:

  • higher gas prices
  • higher unemployment
  • many younger people choosing to delay getting licensed

As the economy improved and gas prices dropped, Americans drove more. We now drive about 3.15 trillion miles per year, an increase of about 150 million miles since 2013.

3. Distracted Driving is a Big Bummer

Several execs shared their front-line adjusters’ stories about distracted driver crashes. Maine adjusters report that many claims involve drivers using mobile devices to text, talk or use social media. Keep in mind that all three are illegal in Maine.

National data reinforces these stories. The National Highway Traffic Safety Administration (NHTSA) reported 431,000 people injured in distracted driving accidents in 2014, the latest year available. More than 3,000 people were killed. And that was 2 years before Pokemon Go.

4. Crashes Are On the Rise

With the increases in mileage driven and distracted driving, you might expect crash rates to spike. They have. Personal auto insurance claims in the U.S. increased 37.1% between 2006 and 2015. Meanwhile, auto insurance premiums increased 20.9%.

Higher speed limits, increased road congestion and distracted driving seem to be causing increased crash activity. A December 1 Portland Press Herald article cited a 32% increase in accidents on Route 295 north of Portland between 2013 and 2015.

What You Can Do to Control Auto Insurance Expenses

  • Shop Around – Compare prices every 3-5 years, or if your rates change significantly. Independent agencies like Noyes Hall & Allen represent several insurers. We can compare coverage and prices for you, without changing agents.
  • Bundle Property & Auto Insurance – Many insurers discount your auto policy if they insure your home, condo or apartment, too.
  • Think About Dropping Physical Damage Coverage – One rule of thumb is: if you’re spending more than 10% of the book value of your car on your comprehensive and collision insurance, consider dropping or adjusting your coverage.

    Related: When Should I Drop Collision Coverage?

  • Consider Usage-Based Insurance – UBI involves installing a telematics device in your vehicle. This allows your insurer to track your mileage and driving behavior. Many insurers offer big discounts if you allow them to customize your premium to your driving habits.

    Related: Is Progressive Snapshot Right for You? 5 Questions to Ask

  • Protect Your Credit Score – Almost every insurer uses an “insurance score” to price your insurance. These scores are closely related to your credit score. The better your credit score, the lower your auto insurance rate.

FMI:

More Accidents, Larger Claims Drive Costs Higher, Insurance Information Institute, October 2016 (.pdf)

Consumer Information, Maine Bureau of Insurance

Get Free Maine Auto Insurance Quotes in 10 Minutes, Noyes Hall & Allen Insurance

Insuring Your Maine Antique or Classic Car

Posted on by Bob O'Brien

An antique or classic car is fun to admire, show, drive and collect. It can also be a good investment, and a great hobby. You’ll want to insure your classic properly to protect your investment.

Teds Hot Rod

Your Maine Classic Car or Antique Is Unique. Your Insurance Should Be, Too.

An “off the shelf” auto policy isn’t a good fit for your classic, for these four reasons:

  • Valuation – standard auto policies pay the depreciated “book value” of a vehicle. There’s a big difference between a ’78 Firebird that’s been babied and one that’s been driven hard and put away wet. Standard policies value the cherry one and the pre-restoration project the same. Collector car policies usually insure on an “agreed value” basis. You and the insurer agree on the amount to be paid on a total loss BEFORE anything happens.
  • Use and Mileage – classic owners drive just a few miles a year – much less than their “daily driver”. When they do drive, it’s often a leisurely trip to the ice cream shop or rally, not a rush hour commute. “Off the shelf” policies consider all driving the same. They also assume a minimum of 8,000 miles driven per vehicle per year. Why pay full-time insurance rates for part-time insurance? Antique and classic owners pay way too much in that scenario.
  • Parts – Anyone who’s scoured New England’s back roads looking for Series 1 Rover parts knows they can be expensive and hard to find. You need a policy that will pay for the right part – and maybe even help you locate it. Regular insurance policies pay for replacement parts after an accident. If your vehicle is more than a few years old, insurers usually only pay for aftermarket parts. That sends shivers down the spine of an antique buff.
  • Roadside Assistance – If you break down on the way to your show, or during a rally, you want your classic worked on by a trusted mechanic. Most classic auto policies offer special flatbed coverage to get you to a mechanic qualified to work on your vehicle.

What Vehicles Qualify For Maine Classic Car Insurance?

In general, insurers define a classic car as 20 years or older, including

  • Sports cars (MG, Triumph, Alfa Romeo, etc.)
  • Muscle cars (Corvette, Camaro, Firebird, Mustang, etc.)
  • Street rods and customized vehicles
  • Collector vehicles, including antique motorcycles
  • Vehicles in mid-restoration

Classic vehicle policies may limit:

  • Annual mileage driven
  • How it’s used (“daily drivers” usually don’t qualify)
  • Young drivers
  • Storage (require you to garage it when not in use)

Answers to Your Antique & Classic Insurance Questions

If you live in southern Maine and have questions about insuring your classic or antique, contact a Noyes Hall & Allen agent at 207-799-5541. We offer a choice of several insurers; let us find the right one for you. We’re independent and committed to you.

Portland Maine Condo Insurance Tips

Posted on by Bob O'Brien

 

Portland, Maine real estate is hot. Perhaps no sector is hotter than condominiums. Condos combine the security, investment and tax advantages of property ownership with fewer maintenance chores. But they do require unique insurance solutions.

Portland Condos are Hot

 

Condos attract first-time home owners who want to invest in a place of their own instead of rent. Downsizing baby boomers are eager to ditch yardwork, exterior home maintenance and snow removal. The convenience, vitality and amenities of Portland, especially the peninsula, draws many buyers. That’s where condo prices tend to be highest.

 

Is Your Condo “All-In”? “Studs In”? What Does That Mean?

 

Two documents govern every Portland Maine condo association: bylaws and declarations.  They define the boundaries of each unit and outline the what you’re responsible for vs. the association. Get copies of these documents as soon as you’re under contract to buy your condo. Share them with your insurance agent. They can help you decide how much coverage to buy.

Some associations insure nearly all real property, including post-construction improvements made by unit owners. Others put great responsibility for building coverage on individual unit owners. Associations may update their bylaws to reflect changing needs and desires of owners. Make sure you have the most recent information, and keep up with any changes the board makes. 

Deeper Dive: Maine Condo Association Insurance – Who Insures What?

 

Bylaws also define what is – and isn’t allowed in the association. Some examples: pets; clotheslines; grills; and rental of the units. Are you joining an association whose rules and culture fit your lifestyle?

Understand Your Condo Fees

 

Monthly association fees get your attention when you’re condo shopping. It’s tempting to view lower fees as always better than higher ones. In reality, it depends what you’re paying for. Common items included in condo fees are:

  • Real Estate Taxes
  • Association Insurance Bylaws that push responsibility to unit-owners may decrease shared insurance expense, but increase individual costs.
  • Property Maintenance – Some associations choose to hire a professional property manager. This can be helpful in contractor negotiations, day-to-day operations, and capital budgeting. But, professionals obviously get paid for their work. Other condo boards are more “DIY”. They may have lower monthly fees, but demand more time and involvement of unit owners.
  • Capital Improvement Reserves – for property upkeep, such as replacing roofs, paving, etc.
  • Assessments for unplanned or special items, such as insurance deductibles, uncovered claims, or unfunded capital expenses.

When choosing a condo, look at your total housing costs, and think about how much responsibility you want as a unit owner.

Questions About Portland Maine Condo Insurance?

Noyes Hall & Allen insures dozens of condominium associations and hundreds of condo units. We’ve been insuring Portland condos since the beginning, in the 1970’s. Do you have questions about insuring your condo or your association? Contact a Noyes Hall & Allen Insurance agent at 207-799-5541. We’re independent and committed to you.

Why Does My Landlord Require $100,000 of Renters Insurance in Portland Maine?

Posted on by Bob O'Brien

 

Maine Renters Insurance 101

Whether you’re renting an apartment, house or a condo, in Scarborough, South Portland or Portland, Maine renters insurance is usually required by landlords. Many leases require a minimum of $100,000 personal liability (renters) insurance. Buying renters insurance is a great idea. Buying $100,000 of liability insurance is a TERRIBLE idea. Read on to find out why.

What’s the Cost of $100,000 Renters Insurance in Maine?

This is the most common question our South Portland independent insurance agency gets from first time renters. They usually focus on the liability insurance requirement, which is only a small part of the cost (and benefit) of renters insurance. The short answer is that a first-time renter with minimal property to insure usually pays less than $150 a YEAR for insurance. If you’re insuring an engagement ring or other jewelry, expensive electronics or sports equipment, you might push $200.

Getting Renters Insurance (1)How to Get Renters Insurance in Portland, Maine

  1. Figure out how much your stuff is worth. Renters insurance prices are based upon how much you insure your belongings for. The minimum is often $20,000. This should be the cost to replace all your old stuff with new. That costs more than you think. A new phone, computer, TV, furniture, bike, everything in your drawers and closets – it adds up FAST!
  2. Don’t buy the minimium $100,000 liability insurance.  That may be what your lease requires, but liability insurance may be the only thing between you and a huge lawsuit. What if you burn the place down? Or, if a guest slips on an ice cube? Or your cute puppy bites a kid while you’re at the dog park? Liability insurance is cheap. You can buy $500,000 for about $10 more than the minimum $100,000. Do it.
  3. Find a good, Portland Maine area insurance agent. Preferably an insurance agent with great reviews from real clients.
  4. Call them or request a renters insurance quote online. The agent will ask you a few questions, and you’ll probably have your quote before you know it. It’s that easy!

Related: Moving to Portland Maine – An Insider’s Guide

Should I Combine Renters and Auto Insurance Together?

Many insurers offer a discount if you insure both renters and cars with them. Ask your agent about the discounts. Getting a Maine online car insurance quote is almost as easy as getting a renters insurance quote. You’ll need to provide information about yourself, your vehicles and your driving record. Even if you don’t end up bundling car insurance with your renters insurance, you’ll know whether or not your current insurance program is any good.

Can I Include My Roommate on My Renters Insurance?

If you and your roommate are unrelated, you each have to buy your own renters insurance. If you’re married, you and your spouse can buy one together. If you’re engaged, ask your agent. Insurance companies’ rules can vary.

For answers to questions about Maine renters insurance, moving to Portland Maine, insuring and registering a car in Maine, insuring an engagement ring, or other common questions, contact a friendly Noyes Hall & Allen Insurance agent at 207.799.5541. We’re independent and committed to you.

5 Things You Didn’t Know About Insuring Your Engagement Ring

Posted on by Bob O'Brien

 

You’re engaged! The world is a happier place when you share your life with someone else. The most common symbol of that commitment is an engagement ring. As high as you feel when that ring is on your finger, you can feel equally sad and angry if the ring is lost or damaged.

Insurance can’t stop bad things from happening, but it can pay to repair or replace your precious engagement ring. We see it regularly in our South Portland, Maine insurance agency. Here are five things we’ve learned that most people don’t know about insuring their engagement ring.

Basic Home and Renters Insurance Doesn’t Cover Theft of Expensive Jewelry

Most modern homeowners policies limit coverage for theft of jewelry to $1,500. Some have an even lower limit. Your policy also has a deductible – often $1,000.

If your $4,000 ring is stolen along with other things from your jewelry box and some small electronics, your insurance might only pay $1,000 or $1,500 for all of it.

Basic Insurance Doesn’t Cover Losing a Stone from Your Engagement Ring

Off-the-shelf homeowners or renters insurance covers your personal property (“stuff”) for 16 listed perils. Those perils are fine for most types of property, but not jewelry. If your jewelry is damaged by something outside of those 16 perils, you have no insurance coverage.

A gem falling out of a loose setting is not one of the 16 named perils. Neither is having to cut your ring off after an accident or injury to your hand. Or, dropping your engagement ring into the ocean while proposing, for that matter.

It’s Not Expensive to Insure Your Engagement Ring Properly

The proper way to insure jewelry in Maine is to “schedule” (list) it on your homeowners or renters insurance using a Scheduled Personal Property Form. This changes the insurance coverage on your jewelry from “named perils” to “open perils”. That sounds small, but it’s BIG.

Instead of the insurance listing perils that are COVERED, an “open perils” policy lists a few that are EXCLUDED. And those exclusions really are few. Things like wear & tear, intentional damage, and war.

Most insurance companies charge a rate of less than 1% for scheduled jewelry. It should cost less than $100 a year to insure your $10,000 diamond engagement ring.

graphic - cost to insure engagement ring in Maine

 

Insuring Your Engagement Ring Probably Protects Your Other Stuff

Most people in Maine insure their jewelry as a part of a renters or homeowners policy. It’s the most cost-effective way to insure jewelry. Bonus: your renters policy also covers your other belongings, and protects you against most general liability lawsuits for negligence.

Many couples don’t think to buy renters insurance until they get engaged, and suddenly have a very small and valuable asset: the engagement ring. Their renters policy also covers their furniture, electronics, bikes, clothing and other “stuff” – almost anywhere in the world.

Engagement Ring Insurance Usually Has No Deductible

Unlike the rest of your home or renters insurance policy, most jewelry insurance riders have no deductible. The insurance company covers 100% of the cost to replace or repair the damage to your engagement ring if you separately schedule it.

If you’re recently engaged…

you’re starting a new and wonderful path together. You’re combining your lives as never before, and making big plans together. It’s also a great time to think about saving money – and protecting yourselves better – by combining your insurance.

How does Maine auto insurance change when you’re engaged? What about renters insurance or homeowners insurance? If you live in the Southern Maine, contact Noyes Hall & Allen Insurance at 207.799.5541 for answers to your insurance questions. We’re especially convenient to the Portland peninsula, South Portland, Cape Elizabeth and Scarborough Maine. And, we’re independent and committed to you!

 

 

 

How Do Insurance Agents & Brokers Get Paid?

Posted on by Bob O'Brien

 

Insurance is a $1 trillion business in the U.S. The industry employs about 2.5 million Americans, according to the Insurance Information Institute. Life/health (L/H) insurers collect about $650B and property/casualty (P/C) insurers about $500B each year.

Noyes Hall & Allen specializes in property/casualty insurance. Before talking about how property/casualty agents are paid, let’s take a brief look at the P/C business.

Maine Property/Casualty Insurance Overview

P/C insurers provide auto, home and business insurance. There are 3 top distribution models for P/C insurance sales channels (1)insurance.

  1. Direct writers rely on advertising to generate the majority of their business.  When you call or respond to an advertising piece, you’re speaking with a company employee. They only offer products from one company. GEICO, USAA and esurance are direct writers. While they don’t pay agents to generate business, they spend a LOT of money on advertising. GEICO alone spends over $1B per year.
  2. Exclusive agents (sometimes called “captive agents”) also sell insurance only from one company. Unlike direct writers, they have local agents who sell and service their products. These companies also advertise a LOT to drive business to their retail agents. Allstate, State Farm and Liberty Mutual use the exclusive agent model.
  3. Independent agents (sometimes called IAs or Trusted Choice agents) are locally owned and operated. Each contracts with 5 to 15 insurers, thus offering their clients a choice of insurance companies. IAs can access an international network of brokers for unusual insurance needs. Insurers that contract with IAs advertise much less than other insurance companies. They are less likely to be household names. Many IA insurers specialize on one region or type of customer. Popular IA insurers in Maine include: Concord Group; Hanover Insurance; MMG Insurance and Vermont Mutual.
  4. Hybrid companies (ok, this makes 4 models, but not really). These insurers will write insurance using one or more different channels. These are usually large national insurers. Examples: Hartford; Liberty Mutual; Travelers; and Progressive.

How Maine P/C Insurance Agents Make Money

Both exclusive and IA insurance companies pay agents a percentage of the premium. Commission varies by policy type and whether the policy is new or renewal. Usually, commission is between 10 and 20 percent.

Exclusive agents often make a higher percentage commission on new business than renewals. Some exclusive companies even stop paying agents after several years. This incents the exclusive agent to focus on writing new policies.

Independent agents often make the same commission on both new and renewal policies. This allows the agent to provide  consistent customer service year after year. If you’re an existing client of an independent agent, you’re even more valuable than a new one. It takes an independent agent 3-5 years to recoup the cost of insuring a new customer.

Who Pays an Insurance Agent’s Commission?

The insurance company pays the agent’s commission out of the premium they collect. There is no specific surcharge on the premium that goes to the agent. Of course, the customer pays the agent’s commission – just not by a separate line item. Insurance premiums do not rise or fall with the agent’s commission percentage.

Can You Save on Insurance if  You “Cut Out the Middleman”?

No one sales channel is always the lowest cost. Claim costs and insurance company expenses all impact premiums. Some direct writers would have you believe that you save money by bypassing an agent. In reality, you might pay MORE without an agent to advocate for you. Of course, you could pay less, too.

Our Agents Speak English – And Insurance. If you don’t know the system, you can leave money on the table. We know to ask about certain discounts. Is your child on the honor roll or away at college without a car? Your local agent may know these things, or you might ask when you call in to do something else. If your agent is independent of the insurance company, they’re more likely to act on your behalf.

If you have a question about Maine home, auto, boat, motorcycle or business insurance, contact a Noyes Hall & Allen agent at 207-799-5541. We’re independent and committed to you.