Despite all the hub-bub over buying insurance direct through the internet, purchasing auto insurance, home insurance and business insurance is still conducted through insurance agents for over 80% of all transactions. So, it’s pretty important to know how to choose a good insurance agent.Video Player 00:00 00:33
Not sure how to choose an insurance agent? Here are 5 useful tips to help you understand if you’re working with a good insurance agent.
Before you learn how to choose a good insurance agent, do you know which type of insurance agent you want to work with?
First, there are different types of insurance agents, captive insurance agents and independent insurance agents. and you may want to select the type of insurance agent that is right for you before you begin shopping. If you don’t know the difference between these two types of insurance agents, check out captive insurance agent vs. independent insurance agent to help understand.
5 Tips for selecting a good insurance agent:
- Do you like the insurance agent?: – If you don’t like the person you’re attempting to work with, then you likely to get poor outcomes. Most good insurance companies have more than one insurance agent, so you’re not locked in to just one option.
- Doesn’t hard sell you: Insurance is part of your personal financial plan, so you shouldn’t make rash decisions. A good insurance agent should spend time with you and explain what the benefits and coverages offered by an insurance policy. If the insurance agent you are working with is pushing for the close, you likely made the wrong choice in insurance agent.
- The insurance agent understands you: Since your insurance is the foundation of your financial plan, your insurance agent should spend some time getting to understand your needs, your goals, and what your objective’s are. Purchasing your insurance is about you … and only you.
- Provides you choice: When you’re shopping for insurance, like all other things, having choices is always better. You want to work with an insurance agent who can provide you with options … both cost and coverage options. Working with an independent insurance agent is the best way to get options, because they represent several insurance companies, but you can still get coverage options from a captive insurance agent. If you insurance agent is not providing you options, and trying to sell you on a narrow coverage option, then they are not meeting options 2 & 3 …. likely because they don’t have many options to offer.
- The insurance agent works with recognizable companies: The better insurance agencies will have appointments with recognizable insurance companies, like Mercury Insurance, Travelers, The Hartford or Progressive. If you don’t recognize the companies on the insurance agent’s wall or window, you need to ask good questions and make sure you know who the insurance agent works with and their financial condition and reputation. This should not be a deal breaker, because some companies don’t advertise, so you’ll not be familiar with all of the “good insurance companies,” but when an insurance company is “good” the good companies want to work with them.
There are many ways to assess a good insurance agent, item #1 above will be the primary factor for many people, but spend a little time thinking through items 2 – 5 when you’re selecting an insurance agent. If you stick to these criteria, you’ll improve your chances of working with a good insurance agent.
- Start with word of mouth. Put out the call on Facebook or other social media outlets that you are looking for some good referrals. A friend may recommend an agent they have dealt with. Be sure to ask your friend if the agent was responsive,whether or not they were licensed and if the agent address their needs quickly and seriously?[1]
- Ask if the person making the referral compared policy quotes from various agents, researched the type of insurance they were looking to get and whether they researched the company and agent.
- This will give you a sense of whether the agent they are referring has already been screened.
- You’ll still want to thoroughly vet any potential providers.
- 2Pay attention to complaints. Listen to friends who have dealt with an agent you are considering. If it didn’t go well for them, chances are your experience with the agent or company won’t either. Also, look for online testimonials and steer clear of the agents with numerous complaints.
- Finding out that a company doesn’t process a claim in a timely fashion will help you avoid that company and save you a great deal of headaches.
- The experience of others, when dealing with an agent or company you are considering, may also help you keep looking until you find a company that suits your needs.
- 3Consider the type of insurance you need and ask related professionals. For example, if you need homeowners insurance, you may ask a title company for recommendations. If you need health insurance, you may want to ask your trusted healthcare provider.
- Keep in mind that recommendations from related professionals may be a way for the professional to get a kick-back, so be sure to check out the agent or company.
- The agents they recommend may have higher premiums. It is best to compare companies and get multiple quotes.
- 4Try an independent insurance agent. An independent insurance agent is not tied to one specific insurance company. They likely have several companies for whom they can provide quotes. Therefore they can help you compare rates and coverage information.[2]
- If you feel comfortable that an agent will be forthright, then ask for multiple referrals.
- You’ll need to be sure that the agent is making referrals to companies that offer policies with similar coverage and deductibles.
- Ask questions like why they chose a particular agency and why they think that coverage is best for your situation.
- With an Independent Agent, you’ll need to check the agent’s credibility and on the credibility of the companies for which they provide quotes before enrolling in a new policy.
- Do this through online research, word of mouth, and interviewing the agent.
