I posted this as a reply to someone on the SL forum shopping for insurance.
Frankly, I put enough time in on it, that I thought it was worthy of it's own thread.

Here's some "take it to the bank" advice, agreeably from my experiences and perspective:

First: Insurance is a State regulated business. The Dept. actually approves rates for cos, and many other things. If nothing else, this means information is available. Unlike real estate, where (generally) an agent works for the one paying his commission and (at least in theory) trys to do the best for you....an insurance agent works for the Insurance Company - their interests and yours are frequently opposite. When the company pays a claim on a policy he has written, they DO hold it against him (in many ways). The loss ratio on the policies he writes directly effects how much they pay him, or if they will even let him write insurance for them. On the other hand, they may require he writes a certain amount of premium in order to qualify for certain payments and benefits, so he may want to place you someplace that meets his goal. wheras, the agency down the street, frequently writing for the same companies, has a different situation. What makes things worse is in some instances, it's the first agent that approaches a company with the customer that, even if someone else actually presents it later, can be in line for the commission. It can be complex, but - Shop around, and shop around wisely!

Most State Depts of Insurance produce a guide that will give you very exact examples of the rates they allow, by company, by location within the State. Find their website and you'll probably find a link to it, or call them and ask. The examples may not be exactly you - but find one close and you'll be on the right track. I have done this in CT, NM and now NJ...it was amazing the variance in price, not only by company, or the same company with slightly different driver/car profiles, but the same company and profile by where one lived in the State. I have literally saved thousands yearly - and many people in my office who have done it (I think sometimes intending to prove to me that "their agent" was getting them the best deal), have also frequently found the savings more than enough reason to change!

Consider all your coverages and needs. It is frequently very beneficial to be able to give a company "supporting business" - as in your Homowners Policy too. Check it out. Also, many times there are Cos that work only with certain groups (like here in NJ, "NJ Manufactures Ins Co", which only provides coverage to employees of Cos that are part of their group, and are known for being very reasonable. GEICO, generallt considered a decent and inexpensive carrier, started as only writing insurance for Government Employees for example, hence the name).

Now some basics: I do not believe in the (yes very reasonably priced) collector car insurance, UNLESS you really are covering a car you own & use like a "collector" - keep in a protected environment, don't drive for pleasure (to & from shows only, basically). I believe perhaps saving a few hundred $ a year, for coverage that may be disputable if say I take one of my "special" cars to work on a nice spring day and something happens, (IMHO) means I'm simply not buying what I actually need - and that is never a bargain! I do believe high deductibles are fine - I can always reach for the first handful of $ for something big (I mean if its a big problem, the high deductble seems small), and anything else that happens thats only near a high deductible amount, ain't worth involving the company, or the effect on your very important insurance record history. I've found it basically comes down to the premium savings in a few years covers any out of pocket, (which realistically becomes an amount almost absorbed in a big claim), for years to come. The Cos like high deductibles, since it costs them a lot just to process small claims anyway.

One important thing to consider, frequently overlooked, is the amount of base coverage. No question, in todays world having a lot of liability coverage (especially considering that just by having a specialty car may be a display to some that you are a good target to sue). I believe one way to save and get better coverage overall is to buy your Auto and other property (homeowners, marine, etc), coverage only to the limit (normally set fairly reasonable - like 250K), where an additional policy you buy - called an UMBRELLA LIABILITY coverage picks up. The umbrella picks up where the base coverage stops - so say you have a base policy with 250K liability, you get an umbrella with say 2 milllion...any amount over the base is the responsibility of the umbrella company. This liability coverage works with all your other policies, so your homeowners would require a lower limit (less premium) than you may have now, but the umbrella actually provides a much higher amount of coverage in the end. Umbrellas are amazingly cheap - hundreds a year - so the savings on the lower coverages on all your other policies generally pays for it easily! The other thing I really like, is the umbrella provides coverage for lots of things...things you may get involved with occasionally, (or in the future) and otherwise have not been insured for (marine/jet ski comes to mind, animals, snowmobiles, etc ), and weird things - like being sued for slander, etc.

Understand, if you only have say 100K of coverage (as in 100/300 policy, so any 1 person is able to get only 100K - and the company will pay a max of 300K) - hit a car with 1 person and do 250K damage/injury (not hard at all - say you hit me and screw up my "good" car, make me lose work for 6 months and have medical bills), you would be on the hook for the additional 150K (got a nice house?, college fund for the kids?, etc., thanks...I'll take that). More importantly, the insurer has little reason to even care if I succeed in getting a 250K award or 350K - it maxed out at 100K, costly litigation to get it to say 110K instead, only costs them to try...they still pay the 100k and you the rest. With the umbrella, that company will care to make sure the award is right, since they cover the amount above that base policy. Fact is, it is hard to have too much liability coverage in todays world and again the umbrella is amazingly cheap. (Sparks from your chimney cause the fire that destroys your neighbors house, thankfully no one is hurt. But your building him a new house, paying for his life while it's being done, and that piece of crap on the wall he had...his rich uncle even has a receipt to show it was actually a Picasso he gave as a gift...think your 500K homeowners is enough?)

Personaly, I am with AMICA. They are an A+ rated company, direct write only (meaning no agents = no commissions, etc) and now provide coverage as I described...all the cars, recently my HO, and an umbrella too. I do compare and every quote from any company (or agency claiming to have shopped it too many companys) has been literally Thousand+$ more, and I believe that is for lesser coverage. Now thats in NJ - a very high cost of ins state, but with my circumstances - so that may not be true even for my neighbor).

I have a '69 TR6, '69 280SL (113), '82 280SL (107), '95 Nissan P/U, '99 C230, '00 Infinity and a very good record, NO CHILDREN.

Sorry for the preaching nature of this diatribe, I do not expect everyone would agree I am absolutely right in all respects, but I do hope anyone would agree there is at least some thought and logic to it, and not just the rantings of a lunatic. And I do hope it helps you, or someone, (who has punished themselves by reading it all), at least consider some things they may not have before, and save or get more for what they are spending.

Jeff

Not actually true. Real estate is one of the few licensed professions that allows "dual representation" and can typically represent buyer and seller, with the proper disclosures. An "insurance agent" has a principal/agent relationship with the carrier(s), not the insured. It's the same relationship that a car salesperson has with a guy coming in to buy a Mercedes-Benz.

Rates are one thing, but service on a claim is another, so do check the number of complaints that the commission has fielded about your low-cost carrier before signing on the dotted line. It's simple economics, what they take in as premiums cannot run out the back door as claim payments, so low priced insurance typically means tougher claims processes.

Which is a very good reason to review your coverage on an annual basis. Frankly, if you injure someone else, you have to be prepared to be responsible for your own actions, or those of familiy members under the policy.

Not if the property is held under "tenants by the entirety" if you're married or other estate shielding methods. Certain states, Texas for instance, have "homestead" laws which bar the taking of the family home, except in a limited number of exceptions.

**I don't think that is really true frequently. Your property in most states is at risk. I suspect if your asset rich & wise enough to have planned a protective holding structure...your insurance matters are also well considered. The Texas Homestead laws are, I understand, under a final assault and will likely soon be changed. Joint Property states - in simple form - the property is owned by the joined couple, who are basically responsible for either of their actions

******WISE PLANNING CARRIES THE DAY IN ALL CASES!