Yes, You NEED Car Insurance

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Yes, You NEED Car Insurance

Have you ever been in a car accident? I have.
Luckily, I have never been at fault, but unfortunately, I have been hit more than once by a driver that didn’t have insurance.

Imagine this scenario:
You are the first car at a complete stop at the red light of a major intersection. While listening to your favorite radio station and waiting for the light to turn green, SMASH!
You get rear-ended.
The driver behind you was busy looking at a text on his cell phone and didn’t realize he needed to actually stop his car prior to hitting you.
Once the realization of the hit and whiplash registers, you step out of your car. There is severe damage to your vehicle, yet barely a dent to his. Of course. You start the process of exchanging information, but notice that he starts to get really uncomfortable. Clearly, he doesn’t have proper car insurance. In fact, he admits that he doesn’t have any auto coverage.

Car insurance is important and necessary.
Why?
To start, it is the law. Most states require that all drivers carry minimum liability coverage. Driving without insurance means you are breaking the law and if you get caught, it can result in substantial fines, increased insurance premiums, and even a suspended license. Outside of it being the law, your vehicle is a very important part of your life. They are an expensive investment that need protecting. You would probably have a very hard time functioning without your car. Cause an accident and be at fault – it could get so expensive that you can’t afford your other bills and worst-case scenario, have to file bankruptcy. Making a small monthly payment toward your total premium now, can save you a ton of money later on. HUGE expenses can results from being in a car accident. With over 6.5 million car accidents happening every year in America alone, you need the coverage for you, the car, the passengers, and property. It provides peace of mind knowing that you are financially protected and have the assistance of an insurance agent to help you through the claim process.

Do you still need other reasons?
Your car insurance provides a level of legal protection between you and other drivers that wouldn’t hesitate to sue you for even the most ridiculous reasons.
It also offers protection from the nasty acts of Mother Nature. Hail, flood, icicles piercing your windshield, swept up by a tornado, etc.…you really want to have that coverage in case Mother Nature strikes!
Bottom line – ALWAYS HAVE CAR INSURANCE!

YIKES! Got Car Insurance?
YIKES! Got Car Insurance?

How to save money on car insurance

Every day we are bombarded with advertisements telling us how to save money on car insurance. There is a good way to save money and a bad way. The good way does just that – save you money without taking away valuable coverage that you need. The bad way is, well, not listening to this show and learning how to do it right! This week, Karl Susman and guest Maureen discuss cost savings tips for auto insurance policies.

BEGINNING OF TRANSCRIPT

Karl: This is Karl Susman. Today we are going to be discussing tips and tricks for saving money on your current insurance. And today we have long-time friend and client Maureen on the line. How are you today?
Maureen: I’m good. I’m great Karl. How are you?
Karl: Excellent, excellent. Thanks for taking the time this morning on to be with us. I, it’s funny to say that you are going to be our generic consumer for the call today. So does it feel to be the generic person?
Maureen: I don’t know that. I’ve never been called generic in my life. But I’ll take it [unintelligible 00:54 – 00:55]
Karl: Generic, you’ll have to be, you’re going to be the common person today. What can I tell you –
Maureen: Got it, got it.
Karl: We’ll jump right in and we’re going to talk about today is ways to save money on car insurance which is pre near and dear to many people’s hearts, I think.
The first tip I want to give is to tell people that they need to shop around for auto insurance which seems obvious but it’s not necessarily the easiest or the, there are different ways to do it correctly. How do you, let’s just say if I told you shop around for your car insurance, what does that mean to you?
Maureen: Well, looking at [unintelligible 01:27 – 01:27] places that I have to tell you, shop around to me I [unintelligible 01:31 – 01:31] hopping online, selling out an information [unintelligible 01:36 – 01:37] and then literally just choosing like that’s the cheapest one so, let me take that one instead of looking a little bit more deeper into it more than just prices
Karl: Well you were the, you were the perfect generic person today because that is the, that is what majority people do. They just jump online, whatever looks to me the least expensive, they just grab it. And the truth of the manner is auto insurance is much as its people like to say it. It is not a commodity. It’s not one size fits all. It’s not an appliance that you buy in a whether you get the TV at Costco or you get the TV at Walmart or you order it online then you’re going to get the exact same model make in br anded product. Auto insurance is a lot more complicated than that and unfortunately, a lot of people are sort of falling into that trap in assuming it’s all the same.
Let me give you the right and the correct answer to [unintelligible 02:25 – 02:25] car insurance, it’s not just you go online, r andomly pick the least expensive number. What you wanna do is you wanna work with an independent agent or broker. And the reason for that is independent agents or brokers have the ability to actually shop around for you. So they’ll actually go to the open market and they’ll check with all the top insurance companies and then they’ll come back and they’ll say “ok this company will give us this coverage, and this price. This company will give us this coverage and that price”. And then another show will talk about different coverages and why it actually makes a difference that we’re just talking about saving money in this particular case, the agent will be able come to you and say “this is the best price that we’re able to find for you with the coverages that you need.” And it’s almost always going to be the, the best options for you versus r andomly going online and just picking number out of h and.
Maureen: Alright, I can tell you that I, being the generic person that I am and having pick a r andom number [unintelligible 03:20 – 03:20] internet that I haven’t even spoken with an insurance agent except for the one time I had a call because I forgot my lock and password. So –
Karl: Shame on you.
Maureen: I don’t know all the details, any of the information, what’s covered, what’s not so there is definitely [unintelligible 03:27 – 03:27] it’s not the only [unintelligible 03:39 – 03:39] using an insurance agent.
Karl: Right. For sure. You know the thing is that I have to just correct you because it’s like, it hurts my brain. We pronounce it insurance not insurance. I don’t know why it was just one of my [unintelligible 03:50 – 03:50] So I have to get that correct from you or it’s gonna drive me crazy.
Maureen: In – one more time.
Karl: Insurance. There’s no –
Maureen: Insurance.
Karl: There’s no emphasis on Insurance.
Maureen: [Laughing]
Karl: What can I tell you? Let that be my [unintelligible 04:05 – 04:05] right. Alright.
Maureen: Got it.
Karl: So the first thing is when you’re looking to save money on car insurance, go to independent agent or broker, have them do the shopping for you because you’re getting the added bonus of a person, you’re going to get a better rate, and most importantly you’re going to know what you have and what you’re going to have and advocate for your going forward. So that’s the first thing.
The second thing is, a lot of times people are carrying a deductible on their vehicles, deductibles for the physical damage for their vehicles. You sometimes prefer to [unintelligible 04:33 – 04:33] or collision other than collision. And that’s basically the amount of money you’re going to pay to fix your car in the event of the accident. You’ve heard of that with that sort of terminology you’re used to hearing?
Maureen: Yes [unintelligible 04:47 – 04:47] collision as what I used to hearing.
Karl: So, normally there is a deductible. People will carry a deductible from $250 to $500 sometimes. And here’s a little secret for you, well, let me give you the obvious first. You assume that the higher the deductible, the lower the premium, and the lower the deductible, the higher the premium, right? Which makes sense if you’re going to be out of pocketing more in the event of an accident, then the premium you’re paying all along will be less and vice-versa. That makes sense, right?
Maureen: Right.
Karl: Okay. So everyone said well I want a large deductible. But I don’t necessarily want to have be out of pocketing that much money in the event of an accident. So here comes the magic. Did you know, did you know, I have wish i have sound effects, maybe I can get some of my sound effects, drum roll. But did you know that the only time that you would be responsible for the deductible on your vehicle would be in the event you have an accident that was your fault?
Maureen: No, I did not know that. I thought that your deductible is your deductible, is your fault or somebody else’s, you still have to pay all of that out before you get the initial amount.
Karl: That’s what everybody thinks but let me explain it to you.
Maureen: Yeah.
Karl: So, let’s say you have an accident with somebody and let’s assume again that’s not your fault. So what’s going to happen is the damage to your vehicle is your vehicle is going to get fixed and the other insurance company insuring the person you have an accident with is going to have to pay for. Make sense, right?
Maureen: Right.
Karl: Now let’s also, let’s assume that you have an accident and the other car doesn’t have insurance. Then there’s a specific coverage that we can add on to your auto insurance it’s called waiver of collision which basically says in the event you have an accident and the other person does not have an insurance, they will wave your deductibles. So you don’t pay and being out of pocket. Your insurance company simply fixes the car. So whether the other car you have an accident with has insurance or not, you’re not paying for the deductible for your car. The only time you would be responsible for that would be in the event you have an accident and the accident is your fault, then you will be responsible for that deductible. So knowing that, if you think you’re a good driver, right?
Maureen: Right.
Karl: You more likely will be able to go with a higher deductible now because you figure well. If it’s my fault, ok I’ll have to st and that money for the deductible. But if it’s not my fault, it doesn’t matter what my deductible is.
Maureen: Absolutely with a higher deductible knowing all of that, yeah.
Karl: And it makes sense. A lot of people don’t realize that and they think that, like you said that all deductibles are deductibles and I have to pay it [unintelligible 07:19 – 07:19] Incidentally knows good insurance company is if the accident is not your fault, not only will they repair your car and wave your deductible, but they’ll turn around and go back to the other insurance company for the person driving the other car and then they’ll subrogate, meaning they’re going to collect the money they pay to fix your car to reimburse themselves in. And once they have done that then they won’t even have to charge you to a higher premium for having been involve in an accident.
Maureen: Wow.
Karl: That’s another important thing to be aware of the all insurance company is not created equal. Some of them will say “it’s not just our process or we don’t go, or we don’t spend the time and the money to [unintelligible 07:57 – 07:57] or money, we’ll just trace the premium that you’re paying instead.” But the better companies, they wanna be able to maintain a better rate for you so the way they do that is by subrogating and going to the other insurance company for the other driver and collecting the money back.
Maureen: That’s awesome.
Karl: That’s the way –
Maureen: [unintelligible 08:16 – 08:17] information, I had no idea. It’s awesome.
Karl: You see, miss generic person, now you know, you’ve learned something else. Another thing –
Maureen: I’m becoming less and less generic as we go on.
Karl: That’s right. Now you’re going to become the insurance guru. Another tip that I can give is a lot, is people need to fondle together their auto insurance with their property insurance. Now I say property insurance because a lot of people think that it’s just home and auto, home and auto, that’s what they have trained to hear from all of the messages. Bundle your home and auto together and save money. Well it’s not just home owners insurance. You can usually get a discount on your auto insurance by bundling together your home insurance, if you own a condominium your condominium insurance. Even if you’re a renter, and you’re renting an apartment, you can bundle your renter’s insurance along with your auto insurance, and you can save money on both of those policies as well.
Maureen: That’s something else I definitely didn’t know either of each. Right now I have my car covered to one organization or one company [unintelligible 09:16 – 09:16] insurance completely somewhere else. I thought you have to own your home or you own your property that it could be rental combined as well.
Karl: Alright, that’s what most people think. They think the only discount is available of your home owner but it’s not. You can be a condominium owner, you can be a tenant and an apartment building. And if you bundle that together, you’re going to have the benefit of a discount there. And again, some of the better companies they won’t just give you a discount on your auto insurance, they’ll give you a discount on the auto insurance and on the property insurance, whether be a home owner or a condo or renter’s policies. So you’re really be able to double the discount on both ends.
Maureen: [unintelligible 09:50 – 09:50] discount.
Karl: Tada! That’s right. Everybody –
Maureen: Yeah.
Karl: Everybody loves to save money and if you’re looking –
Maureen: Absolutely.
Karl: If there’s a way to do it, we’ll find it. The last little tip I want to give you today is since we’re talking about discounts is to let you know that you can find discounts for your car insurance that you probably didn’t know existed. There is no st andardized formula or name for different auto insurance discounts. You hear good driver, excellent driver, prefer driver, extreme driver, those are all discounts, but they’re just marketing names that different insurance companies that come out with for that with the exception in California [unintelligible 10:27 – 10:28] good driver doesn’t have definitions based on California proposition 103 many years ago. But having said that, you can get discounts for everything. From being a college graduate to being with a certain profession, to being a member to a credit union. You can even get a discount with certain carriers that I know of if you’re a member of a college alumni association. There’s even a company that I know that would give you a discount in the event that you’re a civil servant, meaning if you work for government agencies, they’ll only give you a discount if you have a family member that works for a government agencies.
Maureen: Wow.
Karl: So there are –
Maureen: I –
Karl: Go ahead.
Maureen: The discount that you’re naming nobody has ever named those stuffs to me before. It’s all we hear in the driver, great driver, maybe [unintelligible 11:19 – 11:19] but never the discounts that you’re listing right now.
Karl: Yeah, good driver discounts and good student discount that’s another issues. Well if you’re a full-time college student there’s discounts out there if you’re a 3.0-grader discount student, there’s a discount for that 3.5. I mean, again, there’s no st andardization for it. Whatever one particular insurance company says is going to be a discount, they can offer that and they do. This is another reason why it’s important to go to an independent agent or broker because once you’ve give them your personal information, they can say “ah, you’re this, you’re this, you’re this, I know a company that would give you discounts for that”. And they can turn around to get your rate that’s probably better than you were finding just go online by yourself and [unintelligible 11:59 – 11:59] around. So –
Maureen: That’s definitely nobody online just gonna ask that kind of personal information when it’s just computerized. Well, another benefit of speaking to a human being.
Karl: There you go, I agree, I agree. Well listen, those are the tips for today that I wanted to go over for saving money on car insurance. If you have other questions or you wanted to talk about anything more specific about discounts or maybe you would talk about some companies and what their discounts are, we can do that in another show.
Maureen: Excellent.
Karl: But if you have any questions in general about the discounts that I’ve talked about, or do you have any other questions in general about discounts for car insurance?
Maureen: We know it. My only question will be [unintelligible 12:36 – 12:37] and finding me for more discounts?
Karl: There you go. And you can think [unintelligible 12:41 – 12:41] to say that. So perfect, right?
Maureen: [Laughing]
Karl: We will definitely do that for you, we’ll definitely do that for you. Well again, thank you everyone, thank you everyone for listening and thanks for subscribing to our podcast –
Maureen: Yeah, thank you.
Karl: And we will walk with you, we’ll talk next week.
Maureen: Sounds great.
Karl: Thanks.
END [13:13]
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Discounts Everywhere

Do you like discounts?  I know I do!  In fact, I don’t now anyone that doesn’t like to save money!  There are numerous factors that can determine the type of discounts you are eligible to receive on your car insurance.  Your gender, age, location, and driving record are the most common discounts that most of us either know about, hear about, and/or currently receive.  However, the majority of us out there have no idea how many other discounts are available – and if we don’t know about them, then we can’t ask about them, and then we can’t receive them!

You can potentially get discounts for – age, gender, location, driving record, driving training courses, multiple vehicles, policy bundling, being a good student, maintaining low mileage, having a low-risk profession, having a public service career, holding a degree in a specifc occupation, have memberships to  auto clubs, credit unions, alumni organizations ( and more), bing in the military, being a federal employee, paying your policy in full – and SO MUCH MORE.

That is nowhere near an all encompassing list of potential discounts.  Speak to your insurance agent as soon as possible and see how much money you could be saving with all these “hidden” discounts!

 

Keeping Your Home Safe

Our previous blog was about protecting and keeping your children safe on Halloween.  There is something else you need to keep safe as well – your home.  Whether you stay home to h and-out c andy or join your kids in the neighborhood, you still need to take steps to keep you home out of harm’s way as much as you can.  It is unfortunate that property crime increases on Halloween, but you can still try to decreases the incidences.

Start by reviewing your insurance.  You want to make sure you are covered in the event of v andalism or burglary – the two mist popular crimes on Halloween.  If something happens, you will want that policy to be updated well in advance.  You also want to review your car insurance policy. If you park your car outside, it is worth it to make sure you are protected from v andalism to your vehicle.

Don’t turn-off all your lights.  Some people do this to let other know they aren’t h anding out c andy.  Other do it when they leave to take the kids out.  Either way, leave a light and television on to make people think someone is home.  A couple of rings of the doorbell might be annoying, but not as much as a break-in would be.  Yes – break-ins happen all the time on Halloween, because there are so many people walking around that hardly anyone notices what is going on. KEEP LIGHTS ON!

Stay off of social media.  Announcing where you will be and when gives criminals the perfect opportunity to find you or your empty home.

We hope you have a safe and happy night!

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Insurance Trackers

By now you have probably heard about those car insurance trackers – you know, the advertisements that talk about those little devices you somehow plug into your car so it can track how you drive and then determine how much you should par for your car insurance and what level of insurance you need…??

How do those work? Do they really serve as a way to save you money?

The device connects to the internal computer system of your vehicle and sifts through all the information and date until it finds what it needs to determine how safely you drive.  This info is then sent directly and wirelessly to the insurance company that you opted in with for this program.  Often times you have to use the tracker for at least six months. During this time period, the device tracks habits, speed, accidents, time spent driving, distances, level and rate of braking, and sometime even location.

There are pros and cons to using such a device.  Many consumers find the tracker to be a success and saved money in the process.  Others didn’t like the outcome, didn’t save ‘enough’ money, or didn’t find the process to be fair.  As of now, nobody is required to utilize a tracking device.  You best bet is to stay in contact with an insurance agent you trust and keep your car insurance updated at all times.

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Refresh. Renew.

It is time to renew!

Within the next couple of months, I will be renewing my car insurance, health insurance, lease, driver’s license, and cable television. It is crazy that when I first sign-up for something, it seems like expirations and renewals are SO far off in the future that I don’t really need to worry about it. In actuality, with how fast time goes by and how bust my life is. I almost have to start saving and planning for the costs of renewals and the time it takes to makes sure everything processes correctly, the day after I either sign-up to begin with or do a renewal.

For something simple like my driver’s license, I know that it is just a quick picture, fee, and I am done. It is something I need and have to have. It doesn’t require review or changes on my part. However, I always take the time to review my car insurance and health insurance coverage every time I have to renew. Not only do the policies, rules, and regulations change, but sometimes so does the coverage for what I was originally paying. I don’t want to be stuck without proper coverage.

Last year I started using my health insurance renewal period as the time of year that I also review my life insurance policy. Just like everything else, I want to make sure it fits with my current needs and lifestyle.

Double-check your life insurance policy. Is it current for your life? Does in need updating?

Time to make changes and renew…
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Road Rage

Road rage. You hear about it, you know what it is, however when is the last time you actually were involved in it? Being in the insurance industry, you can bet that I hear about road rage, its effects on driving habits, premiums for auto insurance and so on. I’m a trained professional, so I would never fall into that trap I know so much about and take it out on another driver, or would I?

I’m driving home from the office, minding my own business. The street I’m driving on begins to narrow, well it always does that after all. However today there appears to be some parties in progress. There are rows of cars parked on both sides of the street and I immediately notice no less than ten valet scurrying up and down the street picking up and dropping off cars. Being the careful, well trained vehicle operator that I am, I slow down for safety.

After a few moments, I’m at a complete halt; not really much of a choice with cars on both side of the already narrow street and people walking around and valet personnel hopping and jumping about. Soon I’m inching my way up, taking turns with cars coming down the street, I pull to the left, the car passes, I migrate up a car length while the opposing traffic does the dose-e-do with me. This is the safe, polite and in all truth only way to slowly crawl up the street and we’ve all done it before. Haven’t we?

From what appears to me as out of the blue, a car whips around the corner and I would have sworn connected its front bumper to my rear bumper. As I’m inching my way along, this car is for all intense and purposes, attached to me. After a few duck and cover operations trading space to let oncoming cars go by and then moving along myself, this car, or more accurately this driver starts honking at me. It’s a shame that a car horn only signify objects in front of you and not behind, because if I had the ability to honk back at him, I would certainly have opted to do so.

After honking at me for a solid minute give or take, I would have loved to let him pass, however alas, there is barely enough room for one car to get by let alone one car pass another. So, I do what any conscientious law abiding driver would do – I stop. Completely stop and wait for my little attached to my bumper tumor to take a few breaths and relax. Sure, in hindsight, I can see how this would probably not accomplish that at all, and in fact it didn’t. It royally pissed this guy off.

Being the uber-social fella I am, I figure if I roll down my window and wave to him, smile, perhaps make the “calm down” gesture, he will get my drift and actually, well, calm down and relax. After rolling my window down I do just that and wouldn’t you know it, I can hear him, well, saying, cursing at any rate, trying to communicate back to me. Ok, so maybe I should just keep moving then. So I keep moving up, stop, pull to the right let a car go by, go up a little more, rinse and repeat.

At long last I make it to a place where there actually is room for a car to get around me, apparently a spot a valet didn’t yet fill and my little growth takes the opportunity to speed right around me. I’m expecting “the look” or worse, so I put on my best and most friendly smile. Instead of any communication human to human, he instead pulls infront of me and slams on his breaks bringing me and all cars behind to a halt. I can’t say screeching halt, as much as that would make this sound so much more dramatic, after all we are only going a few miles an hour at best. I sigh and say to myself, ok, get it out of your system and we’ll all move on. Sure enough, after a minute or so and people behind me begin to honk, he starts moving along. All is forgotten and we’re all moving along again, same pace, just a new leader in the pack, him.

Uh oh. Now he pulls over and waits to be passed. I exhale and just drive on past, not even turning my head to engage him. Sadly, he is not ready to live and let live. Tires smoking leaps behind my car, almost hitting the car that was behind me and again re-attaches his front bumper, fugitively speaking, to my rear bumper. Now I’m spooked. I’m not going to let this dude follow me to my front door, so I take the first opportunity to turn on to a street, hoping he will pass. Nope. No dice, he turns with me.

With my luck for the day, I have turned onto a cul-de-sac and have no choice but to turn around and head back and surprise surprise he has pulled over and rolled his window down to have a little chit-chat with me. So be it. I slowly pull up, with no other option, and our two driver windows are only a foot apart. I stop and open my window.

He asks what I was doing, and although I think it was pretty self evident, I decide to give him an honest answer. I tell him I was driving carefully up the street. He says I was holding up all the traffic, and I explain to him that I was really going as fast as was physically possible and he really should just relax, it’s always better to drive and error on the side of caution. Next he wants to know why I had the “audacity” to stop in front of him. Again, I smiled and gave him an honest answer, “to give you a few seconds to calm down.” He tilts his head to the side studying me to see if I’m serious and then smiles and says, “ok, well take care and have a great day.” Not even the slightest hint of sarcasm in his voice either, oddly enough. I pay him the same respect back and we both pull away.

I notice he drives the other way, back down the street, meaning he actually was following me, at least for a while to follow me, not to get to anywhere specific in the direction I was traveling. That won’t give me too many nightmares.

At the end of all of this, I’m left in my driveway thinking it all over. What did I do wrong, where did I go wrong? Leave a comment below and you tell me who you think was in the right, or wrong.

Karl Susman, Agent

10 Tips for Purchasing the Right Auto Insurance

When was the last time you actually sat down and read through your auto policy? Did you ever open your insurance policy and faint at the site of your insurance premium? If you have been shocked with your current rate for car insurance, then you need to know there are things you can do about it. By following some simple steps you can lower your rate by hundreds of dollars every year and in some cases even thous ands per year. Of course do not sacrifice quality with cheap; you can have both.

Lowering Your Car Insurance Premium and Finding the Right Company for You

The steps to lowering your rate and staying with a reputable company are easy to do and will not take very much time.

  1. When shopping for car insurance ask for an extended start date for the policy. Companies love customers who are responsible enough to shop for a new policy before the other one expires. Sometimes, you can get a few bucks off your premium with some planning ahead.
  2. Ask questions of their customer service to test their knowledge. A good company or agency will employ people who are knowledgeable about their coverage and services.
  3. Price the higher coverage amounts on a policy because in some states they are as cheap as the lowest coverage amounts.
  4. Put both cars on the same policy for a multi-car discount.
  5. If you have teenage drivers who are struggling with grades, then help them raise their grades for a good student discount.
  6. Ask for the low mileage rate if you do not drive more than 8,000 miles per year with any given vehicle.
  7. Let our agency quoting engine check the rates of multiple carriers at once. This will save you a great amount of time.
  8. Speak with your agent about any other discounts that are not on the policy. One discount that goes unnoticed is the military or educational discount. This one has to be asked for.
  9. If you are looking for a better rated company, check their insurance rating to see if they are an A rated company or not. An A rated company is the best rating possible. Just keep in mind that there are several rating systems to look at but they give the same information.
  10. Be proactive with your insurance policy. Take the time to check new rates every policy term. You may be surprised at what you find.

Karl Susman, Susman Insurance Agency