Business Planning

Well... my experience is limited to one instance (if we exclude a State Farm scare). When Kemper dropped Kansas coverage several years ago (non-renewal?), my premium did not double, it went to zero along with the coverage. :laugh:

That's the beauty of having an independent agent :cool: I've got options for you. They might all suck in California and Florida... But there are options
That's the beauty of having an independent agent :cool: I've got options for you. They might all suck in California and Florida... But there are options
Well ......................
My independent agent experience with the P&C following that event was not good.

My home coverage agent nagged me, and nagged me and nagged me, and nagged me about changing away from Kemper because she could get me a better premium. It really pi$$ed me off because Kemper, or the adjuster through Kemper, never been quite sure which, treated me very well on a roof and wind damage claim.

In addition she nagged me and nagged me and nagged me about vehicle coverage and all the money she was going to save me. I finally gave her info for a vehicle coverage quote, the result was ........ crickets. She never even gave me the courtesy of a "check back" so I've no idea why she didn't, or thought she couldn't, provide a vehicle quote.

She switched me to Safeco for the house after Kemper left. When I left my last job and could not longer afford "the principle" of keeping separate home and vehicle coverage, she put my vehicles on Safeco and gave me something that showed how much money she was saving me.

Not very long after that, she disappeared from being an agent. I think she moved into management and then took her cut and left completely when the agency was sold (the first time). The agency was then sold a second time, so now I have an agency in Denver and have to deal with the national Safeco call line for customer service.

That angers me even more for situations like now when I need some suggestions for local on-site windshield installation and I have no local agent I can talk with.

I may also have stumbled onto the reason my auto quotes "saved money" at the original purchase date. I put it off as long as I could, but I finally had to call the national service line for a policy question. The representative would not talk to me because I could not provide the "correct birthdate". My birthdate has never changed and I had made either one or two payments on the policy.

We had a very long and convoluted conversation, I no longer remember the details, but I finally convinced the rep I was who I said I was and she changed the birthdate in the policy documents. (And no, I have no clue how much of the auto coverage increase in the following year might have been from an age change and how much was "normal" increase.)

It did strike me later that putting an incorrect age on an auto policy might be a way for an agent to obtain a better rate for a prospect. No clue what actually happened and no clue if the incorrect date was earlier or later than mine.
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When I was building my business plan, I found industry reports, local insurance associations, and market research firms to be helpful sources for average premiums. They often provide data and insights specific to your region and target market. Also, don't forget to choose a startup bank account from sites like Good luck with your agency venture in Michigan!
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