Monthly Archives: December 2012

How do Life Insurance Companies Classify Individuals for Rate Purposes in Pennsylvania?

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Life insurance is the type of protection that no one wants to use, but everyone needs. The amount you pay for life insurance each month or year depends on a number of factors, including the amount of coverage you wish to purchase, how long you want coverage for and your age when you apply. Your health and lifestyle habits can also affect your premiums. Life insurance companies use rate classification to determine your premium when you apply.

What is a Life Insurance Rate Classification?

A life insurance classification for rates is a process by which a particular Pennsylvania life insurance company categorizes policy applicants for coverage. In other words, the same life insurance policy may have different premiums depending on who is insured. Rate classifications are determined by the life insurance company, rather than the state. That means that a person applying for coverage may get a preferred rate with one insurer and a non-preferred rate with another.

When you apply for life insurance, you will be asked about your age, weight, past health history, existing health problems and your lifestyle habits. If you have a history of heart disease, high blood pressure, smoking, alcoholism, drug abuse or other factors that could negatively affect your health, you may receive a higher premium than someone in perfect health. Similarly, if you participate in adventure sports and activities, such as skydiving or scuba diving, you may be classified as a higher risk than someone who does not participate in those activities.

Finding the Best Rate

Here in Honesdale, Pennsylvania, residents want access to the life insurance coverage they need without high premiums. Individuals applying for coverage through life insurance companies and their agents may find themselves paying higher costs than those who shop around for coverage from multiple insurance companies. By contacting our office for a quote, you will work with an independent agent who will show you the best rates available to you from more than one Pennsylvania insurance company. If you need life insurance coverage in Honesdale, Milford, Dunmore or the surrounding areas, contact our office today for your no-obligation free quote.

Does Home Security Reduce Insurance Cost in Honesdale, PA?

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Here in Honesdale, home security is an asset for homeowners. After all, Neighborhood Scout only ranks Honesdale, Pennsylvania as safer than 30 percent of all other U.S. cities, with 120 violent crimes per year. While it may not sound like a lot, that equates to approximately 26 violent crimes annually for every 1,000 residents. Fortunately, a home security system can help keep your family safe while also saving you money on your homeowner’s insurance premiums.

Here in Pennsylvania, purchasing a monitored alarm system can significantly reduce your annual insurance premiums — often offsetting the cost associated with having a monitored alarm system. Many insurance companies offer as much as a 20 percent discount on annual premiums simply for providing evidence of your security system and maintaining it from year to year. For a home with a $1,000 annual premium, that could equate to a savings of more than $16 per month, or $200 per year.

Installing a home security system is not the only way to save money though. In fact, simply shopping around for new insurance quotes on a regular basis could save you thousands of dollars over the course of a lifetime. At our Honesdale insurance agency, we provide independent insurance quotes designed to help you make an informed choice about which insurer and policy is right for you. We do not work for a specific insurance company, but instead connect consumers with multiple companies. Often, we find our customers better coverage for less money.

When you apply for a quote, we will ask you questions that could lead to discounts on your insurance policy. If you have a monitored burglary system or a monitored smoke alarm in your household, let us know so that we can provide you with the most accurate quote possible. Don’t delay. Get your no-obligation quote today.

When Filing a Claim in Milford, PA Do You Call Your Insurance Agent or the Insurance Company?

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If you have a current insurance policy, then there is a good chance you have had to file a claim in the past five years. Most people will wrestle with the question of, "Who should I call in the event that I have to file a claim?" Or, "Do I call my insurance agent or do I call the insurance company?" The answer is a lot easier to figure out than most people will think.

How to Know What Number to Call in the Event of a Claim

  • The first thing you will want to know is what agency is representing your insurance product. Some people buy through an agency while other people bought their insurance product directly from the insurance company. You will want to know who you bought your policy from. If you went into an agent’s office, then you will have bought it from the agent.
  • If you bought your policy direct from the company, then there is a good chance you will have to call the company in order to file a claim. Some insurance companies staff service agents to assist policyholders when they need to file a claim.
  • You should also check to see if your agent is a servicing agent. Some insurance companies in Milford, Pennsylvania will sell their products through a selling agent. The problem is that they will not be the ones who service the claim.
  • Check through your policy for any mention of filing a claim. Usually you will be given a number to call in the event you need to file an insurance claim. Of course you can always ask your agent directly to see if they are the ones who would deal with filing a claim or not.

How can I Compare Local Home or Auto Insurance Quotes in Honesdale, Pennsylvania?

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There are many resources available for Honesdale, Pennsylvania, residents who need to compare home or auto insurance quotes. However, not all of them have a local focus and when it comes to insurance coverage and rates, location does matter.

Getting Started

Shoppers can submit their information on websites that collect a number of insurance quotes and display them for comparison. This can be a good starting point for home or auto owners because it helps them identify some companies that offer coverage in their states and gives them an idea of the rates associated with different policies. However, these websites work on a limited amount of information and may not take all relevant factors into consideration. When it comes to location, narrowing it down to a zip code might not be enough for truly accurate results.

Insurance coverage and rates can vary within areas covered by zip codes and within towns. Honesdale residents who live within a few miles of each other may find themselves with very different insurance offerings. This is because insurance coverage and rates are determined in part by the risk that each insurance company assigns to a location. A neighborhood next to a public area where car break-ins have been reported could carry a much higher risk and warrant higher rates than a similar neighborhood that is entirely residential and has had fewer break-ins. A local independent insurance agent can help narrow down the best home and auto insurance for Honesdale residents. His familiarity with the local area and the availability of insurance policies for it can be an asset to insurance buyers.

Consulting with an Independent Agent

A local insurance agent knows the risks associated with residing, driving, and parking in Honesdale. He can help shoppers quickly narrow down their options and get quotes from the companies best suited to each shoppers needs. He’ll be able to assess whether the home or auto could qualify for discounts that may not be included in the generic online quotes provided by websites. Finally, a local insurance can help shoppers compare quotes, make recommendations about the coverage amounts needed, and give advice on how home and auto owners can lower their risks and lower their rates if they live in high risk areas.