Purchasing insurance for yourself and your family through an independent agent offers numerous advantages. Nevertheless, there are some questions you should ask yourself to help you determine if one company is better than another: Are you paying a reasonable price for the product? Is the policy premium adversely affected by your insurance score? Are you receiving all the available policy discounts? Does your agent respond to you in a prompt and timely manner? Your ability to get answers to these questions will allow you to make a well-informed decision.
Because of their complexity, insurance products can be difficult to quote. All of your insurance needs can be met by an independent insurance company. They can provide you with annual policy quotes to make sure yours is up to date and competitively priced—preventing the hassle of switching companies only to find that there were no true savings. If you switched companies and found out that the only reason you saved money was because you lost coverage, would you still have switched? If one company is too high, independent agencies offer options through other companies that can provide you that additional service. Independent agencies significantly simplify the process for you.
Despite the controversy surrounding insurance scoring, independent agencies allow you to use it to your best interest. Insurance scoring provides you with a lower premium, and allows insurance companies to get an edge on the competition. If one company gives you a low insurance score because you don’t fit the image of their “ideal client,” another company may see you as their best client and give you the highest score.Companies go after different demographics of people—so certain companies will fit you better than others. Independent agencies allow you to find the best rate by having so multiple companies available to them. Because the agent can do all of this for you, you don’t have to call a bunch of 1-800 numbers in order to find the best rate.
When used correctly, policy discounts can cut policy premiums in half. Basic discounts include: multi-policy, multi-car, group, insurance score, loyalty, non-drinker, mortgage free, and non-smoker. Independent agents and direct writers use policy discounts. If they do not apply the maximum discounts, agents will make a higher commission.
Separating your home and auto insurance between two different carriers can deprive you of a 15-25% discount. Also, certain companies offer multi-car discounts up to 40%. Some carriers don’t apply discounts up front, so give your carrier a call to make sure you’re not missing out on any discounts available to your policy.
As agents gain experience in the business, their client base grows as their knowledge of the business increases. They could be serving 1000 or even 2000 clients depending on the size of their company. As such, individual agents may not treat you the way that you deserve. If you notice that your agent isn’t meeting with you face-to-face or making time to accommodate your needs, it might suit you better to find an agent that will. Of the masses of agents available, many will make the time for you and your policy.
It could be that direct writers and online writers suit your needs and your policy well. Ultimately, your agent and company should make you feel effectively covered. If you have any questions, comments, or concerns on this article or other insurance related questions feel free to contact me or call me directly at 616-723-8025.