Consumers generally think they benefit when they buy insurance direct but is it true?

We’ve asked people what matters to them when buying insurance, and in turn our panel used those criteria to evaluate the differences between buying insurance via a broker and buying direct online.

Why do consumers hate the middle man?

Primarily, customers perceive any middle man as an unnecessary third party, and conventional wisdom dictates that this means additional cost and possibly mistakes. Advertising by insurers to ‘go direct’ has compounded this feeling.

What is important to consumers?

In order of importance, these are the things people said matter to them:

• Cost.
• Ease.
• Speed.
• Peace of mind that everything is covered.
• Security of personal data.

So let’s now analyze these items and let our panel judge how each performs when insurance is bought directly or when via an insurance broker.

1. Cost

Contrary to popular consumer belief we found that insurance broker pricing was actually better than direct insurance pricing.

The reason for this seems to be principally due to insurers providing different rates to brokers, in order that premiums are lower. Why would insurers provide special broker pricing? Simple: because the risk is lower for the insurer. Brokers are professionally trained to choose the right policy for their customers, and not to under insure, therefore avoiding unnecessary claims while maintaining the correct premium income.

‘Cutting out the middle man’ it seems, does not save money this time. On the contrary!

2. Ease

Many of the consumers in our test case were surprised here. At least half began our test with the impression that buying policies directly would be the easiest option for them. After trying both, almost all had changed their mind.

While the online experience usually proved more pleasant than the phone, most insurance agencies or brokers offered an online service, and were far, far more pro-active after they received the initial quote request from the consumer, often answering queries by personal email or call and helping to reassure customers with a human service. Furthermore, most direct services completely fell down when queries or changes were required that were less common, particularly later in the policy life cycle. Brokers really shone through here.

3. Speed

The results here were quite evenly balanced. In the case of the time taken to generate initial quotation figures, direct services (online) were consistently very quick, while some brokers answered quote requests by personal follow up.

The difference however was somewhat reversed when it came to mid-term changes, documentation requests and one off queries. The direct services often fell back to large call centers whose staff had little or no real insurance knowledge. In this areas brokers were more efficient, making suggestions our consumers found highly useful, saving them lots of time.

On balance, the speed at which quotes were produced by the direct services was not significant to our consumers when compared to the speed and efficiency with which brokers generally managed their policies throughout the policy life cycle.

4. Peace of mind that everything is covered

We saw few surprises here. Insurance Brokers were largely far more efficient at cross checking policies than consumers, and also very good at educating their customers, explaining what types of cover were available and answering queries.

Direct processes were better than in the past but put too much focus on the consumer to do this work himself/herself to be able to compete with the level of service provided by brokers.

The really good Direct services centered around only covering the low risk policies, and leaving any consumer with non-standard requirements high and dry.

5. Security of personal data

This was a difficult one to test, and fell largely to our technical team. We did however take into account how consumers felt about their data security after using the various services.

On the phone, brokers, being far better equipped to deal with specific insurance questions and used to a human discussion, gave people a stronger feeling that they were in safe hands. The process of securing personal data was much the same as with direct, but the trust conveyed by brokers was better.

Summary of Results- So who won? Broker or Direct?

Cost. [Broker]
Ease. [Broker!]
Speed. [Broker, though people admitted they were heavily biased due to point 2.]
Peace of mind that everything is covered. [Broker]
Security of personal data. [Broker]

Conclusion

We set out in this article to test the general perception by consumers that ‘going direct is better’, for the benefit of consumers and brokers on the whole. While we didn’t test every website and every class of insurance, the results with our test users were conclusive.

While conventional wisdom dictates that the middle man offers little to the discussion and always has his price, in the complex world of insurance, perhaps things are not so simple, and after doing some research at RiskHeads….

Our recommendation to all would be to trust your broker, let him shop for you, and you will likely reap dividend, while living an easy life!

For an insurance quote or to review your policy, contact Lallis & Higgins Insurance in Weymouth, MA.

riskheads.org

College is expensive enough without finding out too late that an accident or theft isn’t covered under your current policies. So, as you get your children ready to head off to school in the fall, there’s one vital “to-do” to add to your list (other than writing that tuition check): a review of your insurance coverage.

It's important to keep in mind that policy language varies from state to state, and there are never "one-size-fits-all" situations, but below is a general guide. If you have questions, or want to go over your insurance needs, don’t hesitate to contact us!

HOMEOWNERS (may vary by state and individual policy)

• Coverage of personal property: Most homeowners policies provide 10 percent of Coverage C (Personal Property) for property owned by an insured that is at a residence other than the insured’s. For example, if the contents of a policyholder’s home are insured for $100,000, a student’s property up to $10,000 would be covered if living in a dormitory – provided the damage is caused by a covered peril and the student meets the definition of an insured.
• For apartments or houses off-campus, the same coverage generally applies. Certain items, such as jewelry or expensive electronics, may require special coverage, or a “rider.” Renters insurance is strongly recommended if a particular policy does not cover a student’s personal property.
• Liability coverage: There usually is an exclusion for damage to property rented to an insured, so generally damage to a dorm room or apartment would not be covered.
• Ensuring adequate coverage: Contact us to get specific answers and information about your coverages. Also, it’s a great idea to create an inventory of the items your student is taking to school, as is keeping photos of and receipts for the items.
• Renters insurance: If your student’s needs can't be met under your current policy, don't forget renters insurance. Landlords’ policies generally only cover the structure, not the possessions of renters.

AUTO (may vary by state)

• Coverage without a car at school: If your student will continue to drive while at home on school breaks, they should continue to be listed on your auto policy. If they are attending school more than 100 miles from home, and are not taking a vehicle with them, the policy may qualify for a distant-student discount.
• Coverage with a car at school: In most instances, a car registered to parents and listed on their policy will be covered if used by a listed student away at school. But you should make sure that your insurance carrier writes coverage in the college’s state and location. And note that a change to the principal location of the vehicle could result in a change in premium.
• Driving a friend’s car at school: Students generally would be covered while driving a friend’s car if the students are listed on their parents’ policy and do not have regular use of the vehicle. The coverage would likely be secondary in this case, as the carrier for the friend’s vehicle likely would be the primary coverage.
• Coverage discounts: In addition to the possible distant-student discount mentioned above, students may qualify for a good-student discount. To qualify, most insurance carriers require that a student must be enrolled in at least four courses per term as a full-time student at an accredited college or university and meet certain academic qualifications. Also, drivers under the age of 21 who complete a driver education course may be eligible for a policy discount.

Going away to school is an exciting time for both students and their parents. Making sure you’ve got the right insurance coverage can help you protect your assets as you invest in your child’s future. We’re happy to discuss your coverage and options — just give Lallis & Higgins Insurance a call or stop by!

Solar Eclipse FOMO (Fear of Missing Out) is real and on the rise as the day of totality draws near, so here’s our guide to make sure you don’t miss your chance to see it in Boston.

Last seen in North America in 1979, a total solar eclipse occurs when the moon’s orbit aligns with earth and the sun perfectly to completely block out the sun, and causes daylight to darken for a brief moment. However, as historic as the eclipse may be, it’s more than stepping outside and looking up. NASA and other experts emphasize the importance of wearing protective eyewear (not sunglasses) while looking at the eclipse, because while the sun is dark, it still emits harmful light to the naked eye that could result in permanent vision loss.

Monday’s eclipse will be viewable all across North America, and the weather on Monday afternoon looks like it should be staying clear, with peak viewing of the phenomenon happening between 1:30 p.m. and 4 .p.m. Even though Boston won’t be in the path of total darkness, several places around the Hub offer public viewing parties to watch the partial view. A few locations will also provide the necessary glasses in case you didn’t get yours in time, they were all sold out, or you got counterfeit glasses from Amazon.

Boston Public Library: Three city branches plan on hosting viewings, and the Central Library at Copley will have activities and a live stream of the path in its courtyard. One of the more popular eclipse events, the library tweeted out that their public supply of glasses is already gone, and the rest will be at the event:

BostonPublicLibrary @BPLBoston
Due to popularity, we are out of eclipse glasses. Some locations have events 8/21, & space is 1st-come, 1st-serve
10:00 AM - Aug 14, 2017

Free, 2 p.m., Boston Central Library, 700 Boylston St.

MIT Kresge Oval: Part of the Department of Earth, Atmospheric, and Planetary Sciences at MIT, this event is free and will take place at the Kresge Oval, outside the MIT Student Center. Unlike the sold-out viewing party at the MIT Haystack Observatory, this event is free to for anyone who drops by, and glasses and specially filter telescopes to view the eclipse will be provided.

Free, 1:30 p.m., MIT Kresge Oval, 77 Mass. Ave.

Northeastern University: Held on the Centennial Common, the physics department of Northeastern will provide viewing cards instead of glasses, and a livestream in case of inclement weather.

Free, 1:30 p.m., Northeastern Centennial Common, 30 Leon St.

Boston Harbor Islands: See the eclipse from one of the nearby islands with a ranger and be a part of “citizen science” by documenting changes in air temperature. The glasses are free with every sign up, and the boat lands at 11:30 a.m. to be sure you arrive at the island with plenty of time.

Free with registration, 11:30 a.m., National Park Service & Boston Harbor Now, Spectacle Island

If you can’t make these events, the Harvard-Smithsonian Center for Astro-Physics has developed a free app for the eclipse for both iOS and Android to help you out. Eclipse 2017 has a viewing guide, information on the deeper science behind the eclipse, solar research from the foundation, and a livestream of the event.

bostonmagazine.com

In today’s economy, everyone is pinching pennies. So why worry about umbrella coverage? Shouldn’t a home and auto policy leave you adequately covered?

Unfortunately, we live in a world of lawsuits. Large damages can be awarded, be extremely expensive and have long-term financial impact. Those lawsuits can come from unlikely sources, such as our furry friends.

Take Herschel for instance. Herschel is a much-loved, rather timid labradoodle who enjoys taking naps on the driveway while his owner mows the lawn.

Herschel watched from eight feet away as his neighbor, a 39 year old man, showed off his rollerblading skills to his kids. The man wiped out on the sidewalk in front of Herschel’s house and broke his leg. He required surgery, costing around $35,000 in medical costs and $18,000 in lost wages.

Fair or not, the man brought a lawsuit against Herschel’s owner, suing for $220,000 in damages. He alleged that Herschel had caused the accident by getting in his way, despite multiple witnesses to the contrary.

But Herschel’s owner was lucky--a jury vindicated Herschel. However, lawsuits such as these can easily exceed the limits on a homeowner’s policy, leaving the insured responsible for the remainder. An umbrella policy would prevent that, giving you an extra $1 million to $5 million in coverage.

Our furry friends can put your assets at risk in other ways as well. According to the Center for Disease Control and Prevention, 4.7 million people are bitten by dogs each year, with half of those occurring on the owner’s property. Dog bites, according to the Insurance Information Institute, account for about a third of all homeowner’s insurance claims, which only cover limited damages.

Protect what you love. Call Lallis & Higgins Insurance to talk about your umbrella options.

College is expensive enough without the added cost of unexpected accidents or theft, not covered by your insurance policy. If you have a student heading away to school, below are a few tips to help you get the most out of your coverage.

HOMEOWNERS (varies by state)

Personal Property: Most homeowners policies will cover personal property for up to 10% of your total policy while your child is residing at school (a $100,000 policy equals $10,000 in coverage). Not all types of damage are covered, so read your policy carefully. Some items such as jewelry or expensive electronics, require special coverage. Renters insurance is strongly recommended.

Liability Coverage: General damage to a dorm room or apartment is not usually covered.

Documentation: Creating an inventory of the items your child is taking to school is a good idea. Use photographs and keep receipts.

AUTO (varies by state)

Car Stays Home: Keep your child listed on your auto policy if they will still drive your car while at home on school breaks.

Car at School: Make sure to notify us if your child will be taking a car away to school. In most cases, if the car is registered to you and listed on your policy, it will be covered.

Driving a Friend’s Car: Students are generally covered if they are listed on their parent’s policy and are not regularly using the vehicle. The coverage would be secondary. The insurance for the friend’s vehicle would be the primary coverage.

Discounts: A full-time student meeting certain academic requirements can qualify for a good student discount. Distant student discounts may also be available. Drivers under 21 who have completed driver’s education may also get a discount.

Before your child leaves for school, contact Lallis & Higgins Insurance. We can walk you through the steps to ensure you have the right coverage. We’re here to help!

Do you need rental car insurance?

You’ve probably been at the rental-car counter, listening to the representative ask if you want to purchase the company’s insurance. And the thoughts start racing through your head. “Is this a rip-off? Doesn’t my regular auto policy cover me? What about my credit card? Why didn’t I figure this out before I left on my trip?”

At Lallis and Higgins Insurance, we are here to help. And while not every situation is the same, we’ve got some general tips that will help you make an informed decision the next time you’re standing at that counter.

1. Know your personal auto policy.

Because insurance policies vary, it’s a good idea to give us a call — before you rent a car — to make sure you have the coverage you need. In many instances, your personal auto policy will provide coverage for a rental car — but that coverage may be limited to the value of the car you own, rather than the one you’re renting. Of course, if you don’t have a personal auto policy, you’ll need to purchase coverage from the rental company.

And keep in mind that in the event of an accident, many rental companies will charge fees beyond repair costs. They may assess a loss-of-use fee for each day the car is unusable, as well as charge you because the value of the car has decreased. Not all insurance policies cover these fees.

2. Also know your homeowners or renters policy.

If you’re traveling with expensive electronics or other valuable items, you probably want to consider what coverage you’ll have in the event they are stolen. Your personal auto policy and/or credit card coverage likely won’t provide protection for this scenario.

3. Check your credit card protection.

Most credit cards will also provide some coverage, but often payment is limited to reimbursement of your personal auto policy deductible (after that policy pays for repairs). Generally, loss-of-use and other fees are not covered, but it’s important to check with your credit-card provider to determine their policies. And while some cards may offer additional protection for a fee, usually coverage is limited to damage to the car, not liability for any injuries to others. Remember, to receive any sort of benefit from your card, you must use that card to pay for your entire car rental.

4. Consider any unique circumstances.

Are you renting a car in a foreign country, or for more than a week? You’ll definitely want to get confirmation of coverage from both your insurance carrier and credit card company because different rules might apply. Also, no matter where you are, vehicles such as trucks, RVs or exotic sports cars often aren’t covered under standard agreements. And if you’re using a car for business purposes, your personal coverage might not apply. Finally, if multiple people will be driving the car during your trip, make sure your coverages will apply to them.

5. Learn about the insurance offered by the rental car company.

According to the Insurance Information Institute, rental companies offer four main types of coverage.

A Loss Damage Waiver (LDW) relieves you of responsibility if your rental car is damaged or stolen. This may also provide coverage for loss of use. Liability Protection provides protection from lawsuits if you are sued after an accident.

Personal Accident Insurance covers you and passengers for medical bills after an accident. You may not need this if you have adequate health and auto coverage.

Personal Effects Coverage protects you if items are stolen from your car. You generally are covered for this under your homeowners or renters policy, but keep in mind that the loss must exceed your deductible for you to receive payment. If you have a high deductible, it may make sense to purchase this coverage from the rental company.

When you go on vacation, you don’t want to stress out about insurance. So give us a call before you leave. Then, when you head over to the rental-car counter, you can stop worrying about your coverage — and start enjoying your trip!

For more information, contact Lallis and Higgins Insurance.

True or False: Your homeowners insurance can increase if you have a trampoline on your property.

True or False: You are responsible when someone trespasses on your property, plays on your trampoline or gets injured.

True or False: Your insurance company can cancel your homeowner’s policy because you have a trampoline on your property.

Unfortunately, all the above are true. Despite the fun and health benefits that a trampoline can bring, insurance companies do not share the same sentiments.

Due to the number of injuries sustained from trampoline accidents, trampolines are an “attractive nuisance” for insurance companies.

If you don’t already own a trampoline, it is important to check your homeowner’s policy for any clause that refers to attractive nuisances like trampolines and pools. Your agent can also advise you on the insurance company’s policies if you choose to add a trampoline to your property.

If you already own a trampoline, you can ignore reporting it to your agent. But, injuries can occur and liability can result. Additionally, if they visit for a different purpose (assessment of property or damage to the home from a storm, for example), they can’t miss the large equipment on the lawn.

You can contact your insurance agent to talk to about a variety of options:

1. The insurance company may offer coverage if you add safety features to the equipment. A trampoline safety netting that encloses the jumper may be sufficient, as it prevents jumpers from falling off the trampoline. The addition of a fence with a locked gate may also work, as it protects homeowners from uninvited guests.

2. Your insurance company may require an exclusion to your policy regarding injuries from a trampoline accident. This means that your premium may not go up, but all medical costs related to the trampoline may come out of your pocket.

3. Your premium may go up as a result of adding a trampoline.

4. Your insurance company may cancel your policy due to a no-tolerance policy.

While there are a number of insurance companies to choose from, coverage varies by company and state.

This means that your sister in one part of the country may have a policy that requires a mandatory trampoline exclusion. But your brother, who’s with a different company and resides in another state, may have a no-tolerance policy when it comes to trampolines.

Rental Insurance for Trampolines

Renter’s insurance may cover injuries sustained by a trampoline. If someone who doesn’t live on the rental property gets hurt, the landlord may be sued because it is their property, however. The landlord’s insurance policy may also be cancelled because of their tenant’s trampoline.

When in doubt, double-check your lease to see if your landlord permits trampolines on the premises or if they have a clause in their insurance policy for trampolines.

A trip to the emergency room can cost more than an increase in premium. Unfortunately, the neurological damage from some falls can be permanent. As such, it is vital to reduce risks by providing the right amount of adult supervision and safety. Following the manufacturer’s guidelines for the number of users and weight requirements is another important precautionary measure.

Knowing the homeowner’s policy and the insurance company’s coverage regarding trampolines will prepare you in case a trampoline-related accident occurs in your backyard.

For more information on carriers who insure trampolines, contact Lallis & Higgins Insurance.

thetrampolinemom.com

Summer is in full swing, so that means one thing… What do we do now? Good thing you have Lallis & Higgins Insurance to guide you through the rest of this summer. Here are a few of our favorite summer must dos.

Enjoy an outdoor movie for free

• Summer in the City at the Boston Harbor Hotel is held Friday evenings, and runs through September 8th
• Hingham Shipyard holds free movies every Thursday through August 25th
• Outdoor Movie Night is held at Union Point in Weymouth on Friday July 21st and August 11th

See a free concert

• Enjoy live music at Sunday evenings through August 6th in Abington. Click here for more information.
• Live music is held every Tuesday through August 8th at Sunset Lake in Braintree
• Tuesday through Thursday you can find live music at the Boston Harbor Hotel through September 8th
• Enjoy music by the Plymouth Water front ever Wednesday through August 30th. Click here for more information.

Visit a Splash Pad

• The Petersen Splash Pad at Watson Park in Braintree is open from 10am to 6pm during the summer.
• Randolph’s Imagination Station is located on Pleasant Street near the Williams Gazebo and Randolph Recreation.
• Nelson Memorial Park in Plymouth is located on Nelson St, and is open until 9pm through the Summer.

Spend the day at sea by riding the Hingham to Boston Ferry, or visit one of our many islands for the day

Click here to visit their website to help you plan your next adventure:

Marshfield Fair kicks off August 18th and ends on the 27th.

This Fair offers entertainment and rides for all ages. You don’t want to miss out on their demolition derby! See their website for hours and event times.

We hope you enjoy making new memories with your friend and family this summer, and be sure to say hello when you see one of us from Lallis & Higgins Insurance around town.

If you live in an apartment you may be considering purchasing renter’s insurance. If so, here are some facts worth knowing if you're still wondering about buying a renters insurance policy:

1. The landlord's policy will not cover your personal belongings

Contrary to popular belief, policies carried by landlords typically cover structural damage to the building and not your personal property, so don't expect to have your sofa or cloths replaced if the living room catches fire.

Your renters policy will also cover theft of your belongings, whether they're stolen from your apartment or from anywhere else; including your car. And will pay for another place to rent if your home is not habitable for an extended period of time.

2. Your coverage likely extends beyond your personal possessions

Your renters policy likely will cover your legal costs if someone sues after having an accident at your place, and it will cover a certain amount of their medical bills.

It also will cover costs if you are responsible for damage to other people's property. A common example offered is when you (or your child) throw a baseball that breaks someone's window. Or perhaps you allowed the bathtub to overflow, causing damage in the apartment below.

3. Renters insurance isn't as expensive as you may think

Thinking the cost of coverage outweighs the benefits? Think again. While the price will vary depending on where you live, the averages we've seen range a $10 to $20 a month, much less than you'd spend to replace your belongings.

4. Furry friends may hike up the premium

For all you pet lovers out there, especially those who own "aggressive breeds," don't be surprised if you're quoted a higher premium or denied coverage, depending on the dog.

5. Luxury items may not qualify for standard coverage

Insurance providers often place limits on the replacement cost of luxury items such as jewelry, an art collection and other high-end items you may own. You can ask to schedule these items to be sure they are insured to their full value.

How to evaluate policies

When selecting coverage for your possessions, you'll be choosing from two options: Replacement Cost, or Actual Cash Value. Actual Cash Value is how much your property is worth after depreciation and is the least amount of money of the two types of policies. Replacement cost will give you money to replace the same like/kind item brand new. i.e if you bought a 50’ Samsung TV your insurance would give you money to buy the same like or kind new 50” Samsung TV.

Once you determine which form of coverage best suits your needs, here are some other important considerations:

• Do added safety features, including fire extinguishers, alarm systems and deadbolt locks, reduce the premium?
• Are bundle discounts available to those who carry multiple policies with the company?

Bottom line: If you skip renters insurance to save money, it could backfire and cost you more in the long run. For more information or a quote, contact Lallis & Higgins Insurance.

Cbsnews

All college student renters should purchase renter’s insurance. If you have lived away from home and have never gotten yourself insurance before, this article may convince you otherwise.

Protecting your valuables and assets by purchasing renter's insurance could be a worthwhile investment and a way to minimize your risk financially.

Even students living in apartment and dorms who have not amassed a large amount of furniture or expensive belongings should ensure they are protected against theft, accidents or other liabilities.

If the list of your current inventory of valuables is short and mostly limited to electronics such as your laptop, smart phone and TV or clothing, renter's insurance will protect you from any losses.

Purchasing renter's insurance protects your belongings, because your landlord's insurance only covers the structure and liability exposure.

Not purchasing renter's insurance can you leave you exposed to a potential financial loss or setback.

Renter's insurance covers the tenant's personal belongings and provides personal liability protection in case a guest is injured while in the home or property is damaged outside the home.

Some companies offer policies which includes coverage for things such as debris removal, reasonable repairs, fire department surcharge and broken glass. Only 34% of Americans who rent have renter's insurance, according to a March survey released by InsuranceQuotes.com.

Renter's insurance is often overlooked by younger and older people. It's unfortunate, because it's a really inexpensive financial safety net. You need to be prepared for a worse case scenario.

Some policies even provide coverage for when you are traveling and your laptop or other items are stolen. Or it can protect your valuables that are housed in a storage unit.

But What's The Price?

Paying for renter's insurance is fairly inexpensive, and the average monthly cost is under $12 a month.

Making a list of your belongings will help you determine how much it will cost to replace them in case of an emergency, theft or accident. If you have valuable jewelry or family heirlooms, you may need to buy special riders that are separate from the policy.

Renter's insurance will protect you against water damage such as a dishwasher leak from an apartment above yours, vandalism or from power surges or earthquakes, depending on your state and coverage.

When you are comparing quotes, ask the provider about what the policy does not cover, if claims settled on actual cash value or replacement cost and the amount of the deductible.

Some property owners now require their tenants to purchase rental insurance before they can rent an apartment, condo or home. Renters should consider this when they are budgeting for housing expenses.

Sometimes it is unclear who is responsible for damaged personal property such as a leak.

Having renter's insurance is especially important if you have roommates. Making sure all your roommates have their own individual policy is the safest way to make sure everyone is covered correctly.

Renter's insurance will cover alternative housing such as living in a hotel and paying for meals if your apartment is damaged by a fire and you are forced to move out while repairs are being made.

Another benefit to purchasing renter's insurance is that many companies will discount your auto insurance policy if you also purchase renter's coverage. For more information on renters insurance, contact Lallis & Higgins Insurance.

Mainstreet.com