Independent agents have access to companies that do not distribute through captive agents or direct-to-consumer.1) What's the benefit of using an Insurance Agent, and do they have a future? (I'm not used to using them much, generally getting my auto and home insurance straight from the source. In my mind, I've lumped them together with travel agents, who have all but been replaced by airline/hotel websites and travel apps)
Direct-to-consumer has been much more successful in auto insurance than homeowners insurance. Progressive, GEICO, and USAA have a total auto insurance market share of over 30%. However, USAA, Progressive, and Homesite have a total homeowners insurance market share of less than 10%.
Most travel agencies in the United States shut down when the airlines stopped paying commissions. However, online travel agencies (OTAs) charge hotels much higher commissions than human travel agents did. Booking and Expedia have a combined market capitalization that is higher than Hilton, Marriott, and IHG.
Most homeowners don't need that much, which is also why you don't save much if you reduce the coverage limit. Cutting it in half will typically reduce your premium by about 2%. There aren't many claims that are close to the coverage limit.2) I can't imagine why most people would need several $100Ks of Personal Property . . . I'm thinking $200K would be more than enough for our clothes, electronics, dishes, furniture, tools, etc. etc. for a 4-bedroom family of five . . . but am I missing something?
Personal property used to be covered at a fixed percentage of the dwelling coverage. Most insurance companies only started allowing reduced limits in the last 10 years, and some companies still use a fixed percentage.
Statistics: Posted by talzara — Fri Aug 16, 2024 7:34 pm — Replies 3 — Views 265