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Independent Insurance Agents
Choosing
an Agent
How to Select
an Insurance Agent for Your Personal Insurance Needs
Many people, particularly seniors,
say they are interested in forming a long-term relationship
with a trusted financial risk manager. So, it’s not surprising
that three out of four insurance consumers say they use an
agent when purchasing insurance for their car or home.
In a survey by the Independent
Insurance Agents of America (IIAA), more than half of the
respondents over age 55 said they had purchased insurance
from the same person for 20 years or more and more than 60%
said it was important to talk with a real person about their
coverage. Only 1% of seniors said they would consider buying
insurance over the Internet.
Most people also say they have
more confidence in their insurance agent than any other type
of financial professional, the survey revealed. That’s
because many people put a lot of effort into finding the right
agent. And, they should. This person will be charged with
protecting your most valuable personal assets.
So, where do you begin if you’re
looking for an agent?
First, you should understand
the differences between the various types of agents. There
is a difference in where you buy your insurance. Many
people do not realize that there are three primary sources
for personal insurance:
Captive
Agents, who can sell
you the products of one insurance company.
Telephone
or Direct Response Representatives, who offer the products
of one company only over the telephone.
Independent
Insurance Agents, who represent a number of companies
and can research these firms’ products to find you the
right combination of coverage and value.
But no matter what type of insurance
professional you choose, you should be aware of a number of
ways to ensure that you can trust your agent’s advice.
- Is the insurance professional
a licensed agent?
- Ask how many and what companies
the agent represents. If an agent represents a number of
insurance companies, he or she has the ability to look for
the best policy to fit your unique needs and to find the
best value for your money.
- How long has the agency been
in business? How long has the agent been associated with
the agency?
- Has the agent earned any designations
signifying that he or she has received advanced training
in the business of insurance?
- Does the agency specialize
in insuring a particular type of business or a line of insurance?
For instance, if you own a farm, a classic car or a home
business, does the agent have experience in that area?
- Did you learn about this agent
from someone you trust and respect? Did this person have
a good experience with the agent?
- Is the agency a full-service
agency that can handle all your needs including, home, auto,
life, health and disability coverages, as well as other
types of insurance (for your boat, for example). More than
80% of seniors say they buy their auto and homeowners insurance
from the same source.
- Who will handle your account
on a daily basis? If it is not the agent ask to meet the
other person. Ask about his or her background, length of
service with the agency, etc.
- What are the agency's hours
of operation? Can it be reached after hours and how? How
are claims handled when the agency is closed?
- Ask how the agent perceives
his or her role in handling claims, how he or she tracks
claims, and what role he or she takes in helping to resolve
claims disputes between the customer and insurance company.
- Ask the agent if he or she
will periodically review your policies and shop your coverages
around for you.
- Ask about the agent’s
involvement in the local community. What organizations does
he or she belong to; does he or she serve on any local boards,
participate in volunteer activities, etc. An agent's active
involvement in his community may translate into a greater
commitment to his or her customers.
- Is the agent a member of local,
state or national insurance trade organizations? Membership
connotes professionalism and a commitment to continuing
education in the field of insurance.
*Courtesy of the Independent Insurance Agents
of America - www.iiaa.org
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