Chuck's Corner
About Us
Our Companies
Customer Support
Contact Us

Article Archive

By Chuck Wells

Think you will save money by going to an 800 phone number and dealing directly with an insurance company yourself? You may. And maybe it will wind up costing you a lot more in the long-run. You could also buy one of those do-it-yourself will kits and hope it flies after you die. Or you could do some electrical jobs around the house and hope your house doesn’t burn down.

Here’s the scoop. Almost every insurance company I have seen over the past 25 years that tries to sell car insurance over the phone has been unsuccessful. They tease people with low rates and flashy TV ads to start a policy, usually cut coverages without people knowing it, and when the claims start rolling in, they head for the hills. Cheap insurance is just that.

You may save some money for a while but when the company jacks up the prices to pay for claims, you will want to switch back to a company that has a local agent. Who wants to wait 50 minutes on the phone to talk with a stranger? If you have no claims and no tickets, you may be ok. If you had a claim with your 800 company, forget about getting low rates through a local company. You are now stuck. There goes that money you thought you saved.

And what happens when you have a big claim with an 800 company? Do you think you are going to do better than having a local agent help you? Forget it. You will be on your own and the insurance company certainly does not want to pay out. You are not an expert in dealing with insurance companies; your local agent is. Just like if we came in and tried to do your job. That few bucks you saved by going 800 will be meaningless if you wind up getting thousands less in a claim.

I have seen the elderly switch car insurance over to an 800 company only to find out later that their liability coverage (pays if someone sues you) was cut and they may lose everything they have worked for after a serious car accident.

I have seen people conned into thinking the new premium they were promised was for the whole year when, in fact, it was only for 6 months. The 800 company telemarketer was only after the sale and could care less what happens after that.

The bottom line is: you get what you pay for. Insurance today is complicated and difficult for professionals to keep up with. It is not a do-it-yourself project. You should have a local agent who represents multiple companies who can assist in designing a program that meets your needs and budget. Get an attorney for your will and an electrician for the wiring job too!


Those of you who have Prudential auto and home insurance should know that Prudential has sold your policies to Liberty Mutual. Reason? Prudential’s top management said that if they would not make at least a 12% return on your business, it was not worth keeping. What will happen to your policies now? Who knows. Prudential’s vice-chairman, Mark Grier, was quoted as saying Prudential agents will still be able to service your policies. If they pay a decent commission to the agents to service the policies, it should be ok. If not, service may suffer. If Prudential has not been able to make a profit on these policies, I would think that Liberty Mutual will have to raise the rates.


Terrence Dickson of Bristol, PA finished burglarizing a house and left through the garage. The door to the house locked behind him and the automatic door opener in the garage wasn’t working so he was stuck. The family was on vacation and Dickson was trapped in the garage for 8 days. He lived on dog food and Pepsi (and you thought it wasn’t good for you!). When he got out, he sued the homeowner for mental anguish. A jury awarded him $500,000.


Sally Davies was awarded over $300,000 by a court in Australia after she fell off a chair in a café. She said the injuries from the fall caused her to lose her sexual urge. She also claimed her practice as a horse dentist was affected.

Send Chuck your feedback on this Article


Copyright © 2015 Wells Insurance Agency
All Rights Reserved - Privacy Policy
Created & Maintained by A2Z Enhanced Digital Solutions