Jim’s located in Maryland, but like most East Coast people, he wish he lives in California! Hah. Kidding.

The other driver in that accident, on the other hand… I heard she had some serious problems dealing with her non-local insurer. Just be sure you know what you’re getting into when you purchase a new policy. Do they have a local office? How will they represent you if a claim goes to court? Ect. Try to find others who have dealt with the company before you commit.

Best of luck, Jim!

Best advice I think it to continually call your agent and shop around to keep them honest. It’s amazing how each time I call my insurance companies they offer me a lower rate – sometimes without even asking!

Anyway, I have been with State Farm for about 20 years and have been happy with their service, though I have checked out other insurers as well.

The performance of the insurer if you have a claim is one of the most important aspects to look at. I tend to only look at the insurers that are highly rated by JD Power in all areas. I have found State Farm to be near the top and the best value.

Also, State Farm allows me to pay my auto, umbrella, disability and life policies by credit card – saving me an extra 2%.

Lastly, the extra icing will be if State Farm ever goes public. If they ever do, I’ll get a nice bit of stock!

saladdin

In addition to property and casualty insurance, I was pleasantly surprised when we shopped for an individual health insurance policy last Fall. My wife’s employer has consistently decreased their contribution and increased premiums have been paid out of our pockets. As a result, I went shopping and found policies from the same insurer in our area for less premium and less total out of pocket max while keeping the same coverage. We weren’t ready to make the switch last year because I shopped too late, but we know when enrollment time comes around this year, we’ll have a new policy waiting for us.

I’m not sure where this comment fits into the insurance discussion, but zero cost collars are expensive in the open market and rarely do they result in a net zero unless structured through private contracts. I would advise anyone pursuing this strategy to be wary of the tax implications, pricing structure, and real short and long-term risks associated with them. In addition, if you construct a collar incorrectly and ignore the 20% minimum band, you will be guilty of a constructive sale meaning any gains would immediately be taxed. This can further be complicated with wash sale rules. If you’re playing the collar game, I hope you’ve done your homework.