Welcome to Rick Stein Insurance Agency
Here's what some of our clients are saying about us.
"Rick Stein saved me a considerable amount of money on my insurance premiums. He also provided excellent customer service and follow through. When a fire damage occurred at my condo building, he did all he could to make the claim process as smooth and easy as possible. Customer service is the number one priority for Rick! Thank you Rick."
Jerome C.
Bethesda, MD
"We were presented with misleading information from another agency and were left without coverage the day before we were supposed to settle on our new home. We spoke with several different agents, but Rick was the one who really stood out. He was honest with us, returned our calls promptly, and went above and beyond to get us the coverage we needed. To top it off he worked with us well after business hours and even stopped by our new home when we moved in. We now feel confident that we are getting the best, most personalized service we can get. It’s reassuring to know that we have Rick representing us.”
Justin and Jennifer L.
Bethesda, MD
"Rick, your services over the past 2.5 years have been really commendable. It was so efficient and time-saving working with you; you and your team's replies to my emails were prompt and clear. I'll definitely miss your services in NC and really hope to find an agent like you there."
Kaushal M.
Sterling, VA
“I’ve been really pleased with your service! Being new to the whole insurance thing, you’ve always been kind and patient with me, even when I called you a thousand times about various things.”
John. C.
Rockville, MD
“You’ve been a really big help to me. I will continue to do what I can to help your business grow.”
Michael Q.
Bethesda, MD
“Thank you for taking care of me and my family!”
Talin H.
Rockville, MD
Frequently Asked Questions About Insurance Scoring
Why do insurers use insurance scores? Insurance companies use financial history, along with a host of other factors, to properly classify insureds according to their potential for future losses. Studies have shown a strong correlation between a consumer’s financial history and his or her future insurance loss potential. Thus, insurance companies believe the use of credit information helps them to underwrite and rate applicants at a cost that reflects their anticipated chance of loss. Insurance scores provide an objective tool that insurers use along with other applicant information to better predict the likelihood of a consumer filing claims. Scores also help to streamline the decision making process, so that policies can be issued more efficiently. By accurately predicting the likelihood of future claims, insurers can better control their risk, thus enabling them to offer insurance coverage to more consumers at a fair cost most specific to that consumer’s exposure.
What information is contained in an insurance score? An insurance score considers primarily:
- Payment history
- Bankruptcies, liens and judgments
- Collections
- New applications for credit
- Amount of outstanding debt
- Length of credit history
What is an insurance score? How does it differ from a financial credit score? In order to correlate insurance score to claims activity, an applicant’s insurance score is compared to the performance of a group of consumers with profiles similar to the applicant’s profile. A mathematical formula, or algorithm, assigns various weights to factors in the credit report in order to produce an insurance score, which is then used to determine eligibility for insurance or the appropriate price. The score predicts the likelihood of certain events occurring in the future. The main difference between an insurance score and a credit score is that insurance scores only look at certain variables of a credit report that have historically been more indicative of future insurance loss potential. Insurance scores also do not take into account a consumer’s income. Unlike a mortgage company, an insurance company is not assessing a customer’s credit-worthiness and therefore doesn’t consider income. Instead, an insurance company only considers those items on a credit report that are predictive of the potential for future loss. Research has shown that people who manage their credit well and pay their bills on time are more likely to be safer drivers or take better care of their home and therefore will have fewer losses. Insurers look at long-term patterns and overall responsible use of credit when determining an individual’s insurance score.
What variables are used in calculating an insurance score? Variables that are primarily used in calculating an insurance score include: outstanding debt, length of credit history, late payments, new applications for credit, types of credit used, payment patterns, available credit, public record, and past due amounts. A credit report typically contains both positive and negative information.
What variables are NOT used in calculating an insurance score? Race, color, religion, national origin, gender, marital status, sexual orientation, age, address, salary, disability, occupation, title, employer, date employed and employment history are NOT used for scoring purposes. Inquiries made for account reviews, promotions or insurance purposes are not used in calculating an insurance score. Insurers look at long-term patterns and overall responsible use of credit.
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The 2 types of Insurance Agents
If you were shopping for a television, would you go to a store that only sold XYZ’s brand or would you shop at a store that sold XYZ’s brand as well as other manufacturers?
Would you buy insurance from an agent that only represents one specific company or one than can offer you insurance from several different companies?
This is the difference between the two types of insurance agents. They are referred to as Captive and Independent agents.
Captive agents sell insurance for one specific company. The one and only insurance company that they represent is typically a “name brand” company. You might even see their commercials during the Super Bowl.
Independent agents, on the other hand, sell insurance for several different companies. They can do the “shopping” for you by comparing the rates and coverage options of these companies. As a result you can make a better, informed decision.
Now that you know the difference between the two types of insurance agents, which one would you choose?
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Making Sense of Car Insurance
Q: What is collision and comprehensive coverage?
A: Collision coverage pays for the damages to your car if your car hits another car or an object. There is a deductible applied to collision coverage. Before the insurance company will begin the process of settling the claim on your car, the damages must be more than your deductible.
Comprehensive coverage pays for damages to your car caused by occurrences other than a collision such as a cracked windshield, theft, vandalism, fire and hail. Also, it pays for the damage to your car should you hit an animal. Like collision coverage, a deductible typically applies.
In general, comprehensive coverage is about a third of the cost of collision coverage.
Should you file a collision or comprehensive claim, the insurance company will either repair the damages or consider the car a “total loss.” The car is considered a total loss when the cost to repair the car is more than its fair market-value. Should this occur, the insurance company will buy the car from you at the agreed upon price.
Q: Should I purchase collision and comprehensive coverage?
A: If you are leasing or financing your car, the bank will require that you carry collision and comprehensive coverage. If the car is paid for, you need to ask yourself a few questions:
- How much is my car worth?
- If my car was a total loss, do I have sufficient savings to purchase a similar priced car?
- What is the cost of the collision and comprehensive coverage?
Q: What deductible should I select?
A: Remember, the deductible is applied each time you make a claim. Also, the higher the deductible, the lower the price of the insurance. Here are some things to consider:
- If the car is older and most likely will be considered a total loss should it be involved in a collision, it makes sense to select a maximum deductible of $500. Otherwise, save your money and remove the collision coverage.
- What is the difference in price between each deductible? For example, if you only save $50 a year by selecting a $1000 deductible instead of a $500 deductible, you should choose the $500 deductible. Why? Because it is $500 less out of your pocket should you have a claim. It’s only worth the savings if you don’t have a claim within the first 10 years ($50 savings/year x 10years = $500 savings)
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Rick Stein Insurance Agency
5640 Nicholson Lane, Suite 225
Rockville, MD 20852
(301) 231-7425