How To Choose An Insurance Agent
Your insurance agent is a bit like your doctor: you won’t be calling them every day, but when you do, you need them to be there for you.
There are several stressful scenarios in which you may need assistance from your insurance agent. When you have a hospital stay you’d like covered or you get rear-ended at a red light on your way to work, you may want help getting that claim paid. When you receive a notice in the mail that your policy is changing or that your premiums are going up, you will benefit from having someone you can trust available to answer your questions about these changes.
When hiring an insurance agent, your number one goal should be to work with someone who is experienced, knowledgeable, and truly cares about you. They should have the expertise required to properly assist you and the availability to provide help when you need it most.
Since they’ll be helping you make some very big decisions, it’s important to find the right insurance professional to work with. In this article, we’ll go over the things you should consider when looking for an agent.
Can’t I Just Google That?
Dealing with an agent might seem outdated. After all, anyone who needs to get insurance coverage can do a web search, get an automatically generated quote, and fill out a one-size-fits-all application (learn more in 5 Ways New Technology Will Change the Way You Buy Insurance).
And if you have any questions, you could always just do a web search to find answers. You might even find a chatbot that will help you out (see Insurance Advice from a Robot? It’s Already Happening to find out more).
This approach has its appeal, especially with how quick and convenient it is. But there are some downsides that are worth bearing in mind. When you rely on a computer to determine what’s best for you, you miss out on the personal touch you could get from working with an insurance agent. They can determine what policy would be a best fit for you by getting to really know your situation and your needs. They might also suggest specialized policies, endorsements, or riders that you may not have been aware of (for related reading, see 12 Disability Benefit Riders to Improve Your Coverage).
That’s their job: to get to know you, find out what you’re looking for, and search for the policy that will best suit your situation. That’s bound to get you better results than filling out a generic checklist.
What You Should Look For in an Agent
When you’re looking for an agent, you shouldn’t just click on the first link that comes up in your online search or call the first insurance agent whose name you see in an ad.
Making a smart choice will require a little homework, but you’ll be grateful you took the time to do it – especially when you need to file a claim or have a problem with your insurance policy.
Referrals
This can be one of your greatest sources of insight. Word of mouth can tell you a lot about the pros and cons of dealing with a particular agent,
Knowledgeability
Any agent worth their salt will know the products they’re selling.
An important part of their role is to educate you before you make a purchase, so make sure they know their stuff. Do they seem to know how the policies work, what their limitations and exclusions are, and what alternatives you could consider? If not, you might want to look for someone else.
Experience
Agents who have been practicing for a longer time tend to have a better handle on how a policy will aid (or harm) an insured.
More experienced agents have also seen it all. They’ll be better equipped to handle any issues that come up.
Personality
The more you interact with your agent, the more they get to know you and learn to anticipate your needs before they arise.
It’s important, then, to pick someone you don’t mind talking to. If you do your best to avoid your agent or keep calls with them short, you’ll never get the kind of personalized service they can offer you.
Availability
Some agents have too many clients and won’t be able to give you their full attention. They’re likely to focus their efforts on the clients that bring them the greatest commission, and if you’re looking for an agent for the first time, it probably won’t be you.
If you ever have to file or deal with an insurance claim, you want your insurance agent to be ready to help you. If you have to leave them several messages before getting a call back, you’re better off finding someone who will be able to prioritize you.
Some Things to Consider
There are a few aspects of the insurance business that are worth knowing about when you’re looking for an agent.
Direct Vs. Independent Agents
A direct agent is only able to sell you the products of the company they are appointed with. Your agent will still try to find you the best option for your needs, but they will only have a few options to choose from.
An independent agent, on the other hand, has access to a wider range of products. Although they might still be only offering products from he companies they are appointed by, that gives you more variety to choose from and increases your likelihood of finding a policy that suits you perfectly.
Other Lines of Insurance
Consider what kind of insurance you might need in the future.
You might be getting car insurance while still sharing an apartment with a few friends, but a few years down the road you might be ready to put a down payment on a house. You’ll want an agent who will be able to advise you when that time comes.
Find an agent with multiple licenses so they can handle your various insurance needs – now and in the future.
Commendations and Complaints
Complaints lodged against insurance agents are easy to find. Search a potential agent’s name on the websites of:
- Your state’s Department of Insurance
- The Better Business Bureau
- The National Association of Insurance Commissioners
Each of these organizations collects complaint data and makes it available to the public.
What About Insurance Brokers?
if you still have reservations about an insurance agent, you could consider working with an insurance broker instead.
The real difference between the two is that while an insurance agent is there to help you find insurance, they work for the insurance company. A broker, on the other hand, is independent of the insurance company. They will have greater leeway in what they sell because they do not have to be appointed by the company to sell their products. They will also have greater knowledge of what they sell because the law requires that they do (see What Is an Insurance Broker? to learn more).
When sifting through the options in your search of the right expert, try asking these 5 questions before you select a new agent.
1. “What is Your Area of Expertise?”
Insurance comes in many forms: life, health, homeowners, disability, and so on. Ask your insurance agent which types of insurance they provide. Does their expertise cover your current needs? Even if the agent cannot provide all the types of insurance you want to purchase, you shouldn’t automatically rule them out. You may consider selecting more than one agent to cover additional insurance needs.
Remember to always choose agents who are knowledgeable in the field for which you’re hiring them and look for people who are committed to taking care of you.
2. “Are You an Independent Agent or a Direct Broker?”
There are two ways to purchase insurance: from the insurance company via a direct broker or through an independent agent.
When you buy directly from a company, you are cutting out the middle man and might receive a quote faster or even be offered slightly lower premiums. On the other hand, you will also forfeit a number of advantages that come with choosing an independent agent. For example, an independent agent isn’t tied only to one insurance company and can present you with a wider range of options.
They also legally represent you and your needs instead of the larger company. You can even choose an independent agent in your hometown to ensure their increased availability and better customer service.
Regardless of your specific needs and priorities, always choose an agent willing to research your options and communicate them to you clearly.
3. “Can You Tell Me Which Discounts I May Qualify For?”
This question serves a dual purpose: you can learn more about your options for discounts and you can test the agent’s knowledge and willingness to help.
Your options (and their suggestions) will vary based on the type of insurance you’re seeking and their area of expertise. Discounts could include a good driver discount for car insurance, a multi-policy discount for bundling more than one insurance, or a lifestyle change (such as quitting smoking) to lower life insurance premiums.
Take note of how helpful the agent is when answering your specific questions.
4. “How Accessible Are You for Questions or Ongoing Support?”
Again, you won’t be calling your agent every single day, but when something goes wrong and you need help getting a claim paid, you want to be sure that they are available and willing to help.
Ask your insurance agent what you should do if you need support after hours. Can they answer your questions if your policy changes and explain what those changes will mean for you? Find out the best way to reach your agent with any questions in the future and keep their contact information in a convenient place.
5. “Do You Have Client References?”
Many agents will put their best face forward when you’re meeting them for the first time. How do you know they will continue to provide excellent customer service after you’ve signed on the dotted line? Ask to talk to some of their other clients. Client recommendations can ensure you’re hiring someone who is knowledgeable and helpful.
When you follow up with client references, remember your ultimate goal: finding a friendly expert who will take care of you every step of the way. Do the other clients feel well taken care of by this agent? Do they describe the agent as trustworthy, knowledgeable, and helpful? If not, you may need to consider other options.
Summary
Your relationship with your insurance agent is important. You will want their help when you are confused about your policy or need help filing a claim, so you should feel comfortable calling with concerns and trust them to answer your questions accurately. Taking the time to ask an agent these 5 questions before you make a decision will ensure you have someone reliable to call on when you need it most.
