Customer Service Secret Weapon Revealed!
Are you sick of navigating phone menus and hearing the recorded voice say, “Due to unexpectedly high call volumes your wait time is approximately 5 minutes”?
Well for some businesses there’s a new, simple way that you can ask them questions and advice online. The list of companies below are some examples of businesses that are communicating with customers on the social media site Twitter.
Each company varies a little on how it uses Twitter to interact with customers but examples of the benefits of following these businesses on Twitter are:
- Ask questions
- Read other people’s questions and the responses
- Get product announcements
- Find out about upcoming promotions or deals
Customer Service Secret!
One of the great things about Twitter is that your average consumer doesn’t know they can communicate with companies using the service so it’s relatively easy to be heard when you have a question or complaint.
Take Allstate Insurance for example, their Twitter page states that they provide insurance to approximately 17 million households, yet they only have 193 people “following them” on Twitter. (Following a Twitter account is basically subscribing to read updates from that account).
Here is a customer service conversation example from Allstate on Twitter:
Customer – “Damn @allstate you forgot to send me that Enrollment letter when I signed up for Easy Pay, now you’re bending me over without lube.”
Allstate – “@stratparrott I’m sorry there is a problem. You should have received a withdrawal schedule. Are things fixed for the future?”
Customer – “@allstate nope I wasn’t notified but my payment is credited but in 3-5 days which is unacceptible it won’t really matter by then”
Allstate – “@stratparrott if you like, send me a DM with your contact info. I can forward to second level support who can investigate more.”
… Customer sends direct message (DM) in private to Allstate
Allstate – “@stratparrott I’ve referred to second-level support. They should contact you before 2:00 ET.”
This conversation happened over the course of several hours but the customer wasn’t sitting on hold, wasting their time while they waited. Instead, they would occasionally check their Twitter page to see if they had any replies.
Companies are still figuring out the best way to use Twitter to help out their customers but for some it can be a great way to have your customer service needs addressed without waiting on hold. Here is a list of some larger businesses that are on Twitter:
Have you had you have any customer service experiences on Twitter? I’m on Twitter as well, you can see my thoughts here.
Insurance Claim Tips for Filing a Property or Auto Claim
Filing a homeowner or auto insurance claim can be a frustrating experience. Many times you may not get the maximum amount you should for a claim because you’re scared, complacent, or confused about the filing process.
Today I’ll share with you some of what I learned as a former claims adjuster. The first piece of advice, if you cannot afford to cover the expense for repairs is to go ahead and file the claim regardless of any other factors. Don’t worry about how it will affect your premium or status with the company.
Insurance companies are in the business to pay claims. Of course, don’t go overboard and file every little claim possible; if the claim is determined to be less than deductible, you’ve wasted your time and the time of the insurance company.
Your agent might tell you to report any and all damage, but the dirty little secret is that they don’t want you to report anything. They have to spend a lot of money to process and adjust a claim. So to help you properly file a claim and get what the money you deserve, I’ve put together seven tips on ways you can maximize your insurance claim.
The Principle of Indemnity
Before I give you the tips, I will explain the principle of indemnity. The biggest issue with insurance companies and their customers is that customers often feel they did not receive enough money to cover repairs for their home or automobile. As a former claims adjuster, I can tell you with confidence that insurance companies put a lot of pressure on their claims adjuster to pay the bare minimum on a claim that satisfies the customer.
The principle of indemnity states that an insurance company is required to pay you no more and no less than you deserve. An adjuster’s job is to put your home or auto back in the same situation it was before the loss. Understand that if you try to get more money than you’re actually due from a claim, then you’re behaving no differently than the claims adjuster who tries to squeak by with the bare minimum payment to you.
Insurance Claim Tips
1) Keep excellent records. Keep all receipts of big ticket items in your home and accessories you installed in your car. If you have a theft or damaged personal property from a lightning strike, flood, or fire, adjusters will ask for something to justify the price you paid for the item or in the case of a theft, proof of ownership.
2) Get multiple quotes from contractors or body shops. For a homeowner’s claim, make sure you get multiple estimates from three or four contractors. The adjuster will create his or her own estimate for the damages. If you do not agree with their price or scope of work, get multiple quotes to justify your disagreement with the adjuster’s quote.
This is tougher to do if your car does not run, but sometimes you can get a mechanic that knows you to travel to the car and provide a quote. They will often pay for towing it to their shop if they know you will use them to get the work done.
3) Be cautious of litigation. Only involve an attorney if the claim is worth over $25,000 and you have exhausted all efforts to work with the claims adjuster to come to a settlement. If you and the adjuster disagree about something, don’t jump the gun and call your attorney. Attorneys cost a lot of money, and they’ll take a third of your claims settlement if you get one.
Attorneys cannot wave their magic wand and get you more money. If the issue is based on price or scope of work, you can usually work out these differences without the use of an attorney. If the issue is over whether something is covered, then involve an attorney if the claim involves significant damage. If it’s an auto claim involving severe bodily injury, definitely consult an attorney. Whip lash is not a severe bodily injury!
Remember, the burden of proof is on the insurance company. If there are any disputes over coverage, they must prove why it’s NOT covered. You are not obligated to prove why it IS covered. This does not apply for all policy forms, but the most common homeowners and auto policy forms used shift the burden of proof to the insurance company.
4. Do your research and homework about the claim. Have an idea about how much labor and materials should cost. Some adjusters will try to intimidate you, but their tactics won’t work if you are educated and informed.
5. Be diligent with an open claim. Be persistent and stay on top of it. Be involved and don’t let the insurance company call the shots. You are the customer, and they are in business to serve you. If you are not proactive with your claim, the adjuster will hardly ever contact you, and they’ll send you a check in the mail hoping you accept it without disputing the amount.
6. Never sign a release of liability form until the claim has been completely settled. Some insurance companies try to slip this in, and if you sign it, you are agreeing that the insurance company has no more obligations or liabilities toward your claim. In other words, they won’t pay a supplement to the claim anymore.
7. Don’t pay for a public adjuster. These are adjusters that represent the customer for their open claim. These guys are a waste of money since they can’t argue coverage disputes; they are only allowed to disputed pricing and scope.
In my opinion many of them are crooks, and they deliberately try to inflate the amount of the claim to cover their commission they charge to handle your claim. The increased use of public adjusters for personal claims has contributed to the rising costs of insurance premiums in homeowners and auto claims.
If you have any other questions regarding insurance claims, feel free to Contact Me.
Economic Stimulus Package – What Does It Mean To You?
What does the latest economic stimulus package mean to you? There won’t be a 2009 economic stimulus check so if we won’t be getting money in the mail, how will we be impacted?
I’m not an economist so I won’t waste your time arguing the pros and cons of tax breaks vs. increased spending; I’ll leave that to the Democrats and Republicans to hash out over the coming few weeks. The House bill has $275 billion in tax cuts and $523 billion in direct spending and provisions. MarketWatch has a good high level bullet point breakdown of the spending, I’ve included some of them below:
- Tax cuts (payroll-tax holiday, tuition & renewable energy tax credits)
- Relief (unemployment, welfare, food stamps)
- Infrastructure (highways, school renovation, health information technology)
- Help for state and local governments (Medicaid, state grants)
- Energy efficiency (energy-efficiency projects and grants)
- Human capital (education programs, pell grants, job training)
The Senate is reportedly going to take some action to address the alternative minimum tax:
“the administration indicated they would ultimately accept a provision in the emerging Senate package that would adjust the alternative minimum tax to hold down many middle-class Americans’ income taxes for 2009. The provision was not in the House legislation.”
But What Does It Mean To You?
Whether this spending or tax cuts effect you directly or indirectly, the thing that stands out the most about it to me is the fear and urgency that spurred the passing of the bill and that seems to permeate society.
I’ve heard a lot of projections about how bad things are going to get and the global decline of our nation, all of which may be true, but I don’t think worrying about them will do us any good. I think most of us realize that we’re in for a rough ride and there is no silver bullet or quick fix.
We certainly need to trim our expenses, build our emergency funds, and prepare for the unknown but at an individual level we’re still going to wake up each morning and live our life. It may not be the life we’ve envisioned but people will still get married, have kids, help each other out, and even smile.
All we can do is work hard, lend a helping hand, and keep putting one foot in front of the other.
Insurance Policies 101 – Understanding Insurance Policies and Claims
Insurance is one of the financial products bought regularly that most people do not understand. Whether it’s health, life, homeowner’s, or auto insurance, most people buy a policy and file it away without fully reading it.
This is one of the major reasons why so many people feel screwed over by insurance companies when it comes time to make a claim, they don’t understand what they bought. Of course another part of it is that insurance companies write policy contracts to protect themselves from taking on too much exposure to risk. Hopefully, by the end of this article you will understand insurance policies better and why insurance has a bad reputation.
Insurance policies are a unilateral contract
In a unilateral contract, only one party to the contract makes a promise. An example is offering a reward to someone that finds a missing pet. Party A offers to pay a reward if party B finds A’s dog. But, B is not required to find A’s dog. But if B does find A’s dog, A is required to pay the reward. Insurance contracts work the same way.
The insurance carrier offers to pay claims in exchange for a premium from the policyholder. The policyholder is not required to pay a premium to the insurance company, but if the policyholder does pay the premium, the insurance company IS required to pay claims based on the terms of the contract.
This shifts the burden of proof to the insurance company. They must prove or disprove that they are required to pay a claim if there is a discrepancy, because they are contractually obligated to fulfill a promise to pay claims. This is very important to remember when filing a claim, and I will get into the significance of burden of proof when I write an article about the claims process.
Insurance policies are a contract of adhesion
A contract of adhesion is a contract between two parties that does not allow for negotiation. It is a “take it or leave it” contract that often favors the party that wrote the contract. There is no power to negotiate, because one party often has an unequal bargaining position.
This is the single biggest reason why so many conflicts arise between insurance companies and their policyholders. The policyholder feels that the insurance company should fulfill their promise to pay claims at all times as long as they are paying a premium, but the contract they signed was a standard form that often benefits the insurance company.
The standard form is written to protect the insurance company from too much exposure to risk. This is done in such a way to allow the insurance company to turn a profit, even when they pay claims on a daily basis.
The state and federal court system will often side with the policyholder in a dispute for the very reason that insurance contracts are contracts of adhesion. Courts know that these contracts favor the insurance company, so often ambiguity in the language of the contract will be favored toward the policyholder.
Always remember this when your insurance company denies a claim based on contract language that could be a gray area. Insurance companies know that courts favor the policyholder, so they try to avoid claims going before a judge and/or a jury.
The Four Main Sections of an Insurance Policy
Definitions
This section defines certain keywords in an insurance contract. It is important to read these definitions, because your definition of a certain word may be different from the insurance company’s definition.
Coverages
This section will define what IS covered under the policy. This section is usually pretty simple, and the contract focuses more on what IS NOT covered. The reason it’s a small section is because many insurance contracts are an ALL PERILS contract which means everything is covered unless it is specifically excluded in the policy.
Exclusions
This section is obvious. It’s long, complicated, and covers many situations in which the policy does NOT afford coverage. Make sure you read this section thoroughly.
Conditions
This section outlines that conditions must be met by the policyholder in order for the insurance carrier to fulfill their promise of paying claims. If you do not meet a condition of the policy, this does not mean that the contract is void. It just means that the insurance company builds their case for not paying a claim if they choose not to. However, most insurance companies do not reject a claim based on a failure to comply with conditions unless it is an obvious failure to comply with the condition.
Know What You Are Buying
Many people think their declaration page is their insurance policy, this is not true. A declaration page is only a snapshot of your specific coverage amounts, deductibles, endorsements attached to the policy, and other relevant information.
The actual policy should be sent to you in the mail after you have signed the dotted line. This is why you are paying a premium. This contract is the language that claims adjusters will quote if they reject your claim.
That is why it is so important to read your policy, ask questions directed to your agent, and do your own research online before you meet with an insurance agent. I was an underwriter and then a claims adjuster for an insurance company for four years. I know pretty much everything about the business, and I know exactly how insurance companies and adjusters operate.
Stick with me for the next few articles and I will help you save a lot of money on buying insurance and help you receive the claims money you deserve.
Renting Movies Online with Blockbuster and Netflix
Renting movies online was the topic of a piece on NPR yesterday that covered the cost of going to the movie theater vs renting movies. “Trading down” was the term they used to describe the increase in the number of people who were renting movies from Netflix or Blockbuster in order to save money on their entertainment budget.
Despite several ways you can save money at the movies, it’s still usually cheaper to rent a movie, especially if there are two of you. We’ve cut way back on our movie theater visits not just because of the cost of movie tickets but because it’s more expensive to go when you have to get a babysitter.
One nice thing about renting a movie is that you can watch it whenever it fits into your schedule instead of having to go at a certain time; it’s also nice to be able to pause the movie for refreshment or bathroom breaks whenever you want. However, we still really enjoy the movie theater experience every now and then but it just seems to get more and more expensive.
How about you, are you “trading down” and going to the movies less often? There are several ways you can save money on movie rentals, such as the Blockbuster free trial or signing up for both Netflix and Blockbuster as they compete against one another.
We Will Recover
With news of Bloody Monday, people are asking when the economic slump end will end, even as some economists are saying it will get much worse before it gets better.
While no one knows how extensive the damage will be, one thing is for sure, we will recover. Will things be the same? Certainly not. But we’ll go about our lives and make it through the downturn.
If it’s any comfort we’re not the first generation of Americans to be worried and troubled. The videos below remind us of times in our country’s past when things seemed bleak and uncertain. Just as the titles of the songs apply to our world today, remember that those generations made it through.
Bad Moon Rising
“I see a bad moon risin, I see trouble on the way”, “Looks like we’re in for nasty weather”
Times They Are a Changing
“You best start swimming or you’ll sink like a stone, the times they are a changing”.
Our hearts go out to all those losing jobs or otherwise effected by the economy 🙁
Tax Preparation Services – Should You Use One?
If the federal tax brackets are too much for you to handle you can always use tax prep software like TurboTax or TaxACT which will walk you through it, in some cases you can file for free!
If you have a more complicated financial situation or just don’t want to mess with taxes at all, you can hire an accountant or tax preparation service to prepare your taxes for you. If your tax situation is pretty basic, paying the money for a CPA can be overkill and you could consider a tax prep service like Jackson-Hewitt, H&R Block, or Liberty Tax.
You still have to gather the required tax forms and information but instead of filling out the tax return yourself, you take your documents to a tax preparation service and they do it for you. Here are some of the things you’ll want to bring along if you hire a tax prep service:
Tax Preparation Documents
- Social Security Card
- Driver’s License
- Last years federal and state tax returns
- All W-2’s received
- All 1099’s received
- All 1098’s received
- Moving expense receipts
- Receipts for large purchases if itemizing your deductions
- All company records including equipment receipts and inventory records
- Alimony/Child Support records
- Jury Duty Pay
- Gambling/Prize Winnings
- Receipts for charitable giving
- Child Care, Adoption, and Education expenses (receipts for the expenses)
Tax Preparation Services
Below are some of the things the top tax prep companies list on their websites:
Jackson-Hewitt – Tax Interviews, ProFiler Software, Audit Assistance, Amended Returns (Find Local Office)
H&R Block – Electronic Filing, Tax Cut Software, Audit Assistance (Find Local Office)
Liberty Tax – Money back guarantee, Audit Assistance, Electronic Filin (Find Local Office)
Some people question whether the tax prep services have the customer’s best interest in mind, there’s a recent Forbes story on some undercover tax prep work done by a taxpayer advocacy group. Just remember you’re the one who ultimately signs your tax return so if something makes you uncomfortable, be sure to ask questions.
Tax Refund Loans
If you use a tax preparation serivce, be prepared for the topic of tax refund loans to come up. They may suggest an immediate refund loan or putting the refund on one of their pre-paid debit cards.
I do not recommend any of these products. Just ask for direct deposit into your account. It should only take 8 to 14 days to receive the refund when you file electronically, and there is no reason why you need the refund immediately.
Never depend on a refund to pay for upcoming bills or expenses. Many people did this with the 2008 stimulus refund checks, and they got burned because the checks did not come when promised.
We’re dealing with the government here, they screw everything up. If you’re expected to receive a refund, don’t rely on it. When you do receive it, use it to pay down credit card debt, invest, or build up an emergency fund.
Evaluating Tax Prep Services
Personally, I have never used a professional tax service. I cannot say which is the best tax prep service, because every office is different, even within the same company.
Some of them may be great and others may be horrible, so do your homework before picking a tax preparation office near you. Ask friends, family and co-workers for a personal referral of an office or individual they have used in the past.
Good luck with those taxes!
My New Favorite Website
I thought I’d take a break from money tips today to tell you about my new favorite website, Blip.fm
If you’re a music buff, I think you’re really going to like it, it’s an all you can eat buffet of streaming music.
I love music, it inspires me and can help me get into a state of “flow”. The cool thing about Blip.fm is that you can jump from song to song, where ever your mind wanders. And it’s FREE!
Below is my music “stream of conciousness” from last night. Did I mention that I love this site 🙂 When you have a minute, check it out
- This Was a Crazy Game of Poker – OAR
- Like A Rolling Stone – Bob Dylan & The Band
- Otis Redding – Sitting On The Dock Of The Bay
- Jump Around – House of Pain
- Take Me Home Country Roads – John Denver
- More Than Words – Extreme
- No Woman No Cry [Live] – Bob Marley
- All For You – Sister Hazel
- I get knocked down – Chumbawamba
- Ode to My Family – The Cranberries
- Save Tonight – Eagle Eye Cherry
- Here Comes The Sun – George Harrison
- Roadhouse Blues (Live) – The Doors
- You Give Love A Bad Name – Bon Jovi
- Weird_Al_Yankovic-Its_All_About_The_Pentiums
- Mary Jane’s Last Dance – Tom Petty & The Heartbreakers
- Summer Of `69 – Bryan Adams
- Stayin Alive – Bee Gees
- I Wll Survive – Gloria Gaynor
- Mammas Dont Let Your Babies Grow Up To Be Cowboy – Willie Nelson
- American Pie – Don McLean
- Ziggy Stardust – David Bowie
- The Wallflowers – One Headlight – Various Artists
- Free Fallin – Tom Petty
- Wildflowers – Tom Petty
- The End – The Doors
- Alabama Song (Whiskey Bar) – The Doors
- The Gambler – Kenny Rogers
Lending Club as a Debt Consolidation Option
Have you decided it’s finally time to take charge of your finances and work on a plan to get out of debt once and for all? If so, congratulations! The bad news is that it may take a while to dig out of your debt hole, the good news is there are dozens of options available to help you through the process.
Debt Consolidation
One of the options you may be considering is debt consolidation; a process that allows you to consolidate your high interest balances into a lower interest loan. This is a popular method of debt reduction due to the fact that you have only one payment to make versus multiple payments throughout the month. Additionally by consolidating into one lower interest loan more of your payment will be applied toward the principle loan amount, therefore not as much money will be wasted on interest.
Unfortunately in today’s economic climate qualifying for a loan to pay off your high interest debt may be challenging. For people who feel debt consolidation is the right answer for their debt elimination plan, social lending networks might be an option to consider.
Social Lending
Social lending networks such as Lending Club offer peer-to-peer (p2p) lending for individuals who qualify for personal loans. The concept is simple enough, borrowers can apply online for personal loans at a lower rate than offered by more traditional lenders (banks, credit cards). In turn lenders can help borrowers while seeking attractive returns.
How does Lending Club work?
If you are looking to consolidate higher interest loans you can apply online and instantly view the interest rate you qualify for. As part of the loan application you will have to provide your social security number and other identifying information in addition to meeting certain credit qualifications. Qualifying borrowers will have their loan request listed for a two week period in which lenders have the opportunity to select requests to fund. If at the end of the two week period your loan is not funded you can either re-list the loan or accept partial funding if it has been offered. You can see the full application process explained in this Lending Club review.
Lending Club Terms and Fees
The loan amount is set to fully amortize over three years with monthly payments to include principle and interest ranging from 6.69%-19.37%. Once you submit your loan request it will be assigned a Lending Club “grade†which correlates to a predetermined interest rate. As with many other types of loans a borrower can expect to have processing fees (determined by the grade assigned to your loan) as well as unsuccessful or late payment fees if your payment is not honored by your bank or paid late.
Social lending vs Traditional loans
The main difference with peer-to-peer (p2p) lending seems to be the loss of the middle man. When you remove the middle man- traditionally a bank- less money is lost in the transaction to cover the profit for the financial institution. While there are some processing fees involved both the borrower and lender can benefit financially by using this system.
Trisha Wagner is a freelance writer for DestroyDebt.com, a debt community featuring debt forums. Trisha writes regularly on the topics of getting out of debt and personal finance.
What Exactly is Moolanomy?
That’s a good question, one that I asked the first time I visited the site Moolanomy.com. The simple answer is “The Science of Money”. For a little more detail, we’ll take a look at man behind scenes over at Moolanomy.com.
I first started reading Moolanomy, authored by Pinyo, about a year ago and have enjoyed getting to know him through his blog. Pinyo is certainly a high achiever, cranking out quality blog posts on the topic of money, building a social media site PF Buzz, all while staying very active in the personal finance community online. Where does he find the time : ) He has quite an about page, here is a brief summary of his personal details.
Moolanomy’s bio
Pinyo is 34, he’s married, and he has a baby boy named Gavin. He and his family live in Queens, New York, and he works as an IT manager during the day. Moolanomy is his side project to make some extra income so his wife can stay at home with their baby. Him and his wife share everything, and they believe marriage and money should be two people working together for one common financial goal. If he’s not working or blogging, he enjoys going to the movies, biking, reading, traveling, and playing chess and video games.
Check out these featured articles by Moolanomy:
- Socially Responsible Investing
- 7 Ways to Get A college Degree For Less
- 10 Baby Steps To Financial Recovery
Visit Moolanomy for more money tips, or subscribe to his feed for daily updates.
Here are some other articles I enjoyed this week:
The Digerati Life has job interview techniques for those searching for a new job in 2009
Gen X Finance explains how to roll over your 401(k) when you leave or lose your job
Lazy Man and Money reviews the book “Outliers” by Malcom Gladwell
Brip Blap analyzes the question, “Is a company too big to fail?”
My Dollar Plan explains her experience with making her first estimated tax payment
Million Dollar Journey reveals 9 ways he reduced his taxes in 2008
Frugal Dad has a different take on handling large student loan debts in the debt snowball method.
The Sun Financial Diary convinces us to invest in high yield dividend stocks.
Consumerism Commentary has tips for keeping your job amidst a layoff.
No Credit Needed reveals his hybrid debt reduction method called the “the debt deluge method”.
Free Money Finance reminds us to use our gift cards as quickly as possible!
Mighty Bargain Hunter got me pumped up about the resale opportunities regarding the upcoming liquidation of all Circuit City stores
Five Cent Nickel brings to our attention that your flexible spending account can be in jeopardy from a layoff..
Blueprint explains how to buy a car without getting screwed. Everyone should read this!
The Simple Dollar shows you how much your investment is really earning.
Get Rich Slowly takes a look at when it’s okay to spend your savings.
Thanks to the hosts of the recent carnivals that this site has been featured in:
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I'm Ben Edwards and I've been addicted to personal finance since I was 12 years old.
That passion for money has paid off for my family - so in 2006 I founded Money Smart Life to help you afford the life that you want. Read My Story...
