by Julian Greene

Created on: April 29, 2008   Last Updated: June 09, 2008

I recently decided that at my age, with my excellent driving record, that it was time to get "good" insurance. When I started researching the "old reputation" insurance firms, I found out what "good" really means. I had used discount insurance most of my life, principally because I'm on a perpetual budget and didn't think I could afford the "good stuff." But the "old rep" firms, such as Farmers, State Farm, Allstate, and even new ones like American Family have all had to bring their rates in line with fierce discount competitors. And while the discount competitors have done a lot in recent years to try to pump up their own image - they can't touch the personal service and expertise one gets from the old rep firms.

Discount insurance firms compared to the old rep companies are like comparing fast food to fine dining. Fast food is quick and convenient, but impersonal and not always of the highest quality; fine dining is relaxing, high quality, and the personal service is usually very satisfying. With "old rep" companies, you have an agent that you get to know - who knows you, and who will likely go to bat for you when the need arises.
Having a personal agent versus talking with a call center is huge in my book. My agent knows my name, calls me in for an annual review to make sure my coverage is what it should be, answers every question I have, and is a person I trust. He always treats me with the highest courtesy.
The most important question of all in my book is, "What is the company's reputation for payouts?" Have you talked to anyone who has had an accident involving a payout while with the company? What kinds of hassles were involved? Did they try to disallow payouts that seemed necessary? Those are questions you might want to research before you choose your insurance company. You can trust that the "old rep" companies have their longstanding reputation for a reason - they haven't spent millions trying to figure out the most clever way to bilk you out of your money.
The company makes its money based on its hope that you won't have an accident, but makes its reputation by the way they treat you when you do. So when my money and my emotional state are at risk, I choose a company that will try to preserve both.

Learn more about this author, Julian Greene.
Click here to send this author comments or questions.