That's unfortunate, because what they don't know could be costing them hundreds of dollars annually.
Jon Merwin, owner of New Hampshire-based Portsmouth Atlantic Insurance, is trying to help people overcome costly misconceptions. Unlike other industries, where buying direct' can save you money, that's not necessarily the case with insurance, says Merwin, whose agency represents multiple insurance carriers, including Met Life, Progressive Insurance, and Hanover Insurance. When customers come to me, I can shop for the best rate on their behalf. My job is to get the best rates and policies for my customers, not show loyalty to any one particular carrier.
It's understandable that people may believe that by purchasing an insurance policy directly, they'll eliminate the middleman, and get lower rates. But the reality of the insurance business isn't that simple.
Some national, well-known carriers can be adversely affected by national events. For example, there are a handful of larger insurance companies that have raised their rates in the past after a large national disaster occurs in another state, says Merwin. Many of our regional carriers do little to no advertising, so they're able offer lower rates for clients, and increase available coverage on home and auto policies at a lower cost.
Indeed, Portsmouth Atlantic Insurance's costs of customer acquisition are very low because a majority of their clients come from word-of-mouth referrals from local realtors and mortgage brokers. And they continue to give me referrals because they know their clients get very competitive rates, and better customer service.
Moreover, Merwin has integrated sustainability into his agency's operations by implementing a paperless management system, using green cleaning products, recycling extensively, and using soy-based ink for the relatively little material his agency prints. He even just purchased bamboo desks for his Portsmouth office.His insurance agency has also joined the Green Alliance, a union of over 90 green businesses across New Hampshire, southern Maine, and northern Massachusetts. His agency offers any Green Alliance member who purchases a policy through Portsmouth Atlantic Insurance a tree planted on his or her behalf through www.plantabillion.org.
We already service 1,500 clients, but through our new Portsmouth office and our new affiliation with the Green Alliance, we feel getting to 2000 clients by year's end is very realistic, says Merwin.
For more information: Portsmouth Atlantic Insurance: www.portsmouthatlanticins.com, Green Alliance: www.greenalliance.biz.