Insurance
5 Tips for Choosing the Right Personal Insurance Agent
You spend a lot of money on personal insurance. There are homeowners, life, and health insurance policies to worry about, plus car insurance – or you might need insurance on your boat camping trailer, or other items. Insuring you, your family, your business, and your property is a complex, expensive process and you want to feel confident that you entrust the best representative with the job.
To make the challenge a little easier, here are five tips to help you choose the right personal insurance agent to service your insurance needs.
Know the 3 Main Sources for Insurance Providers
When you’re considering where to buy insurance, keep in mind that there are three main sources: independent agents that represent a variety of companies, agents who represent a single company (also known as captive agents), or agents who work directly for an insurance carrier. Make sure you know exactly who the person you are speaking to represents.
Ask People You Trust for Referrals
Before many agents give a quote on insurance, they check out your driving record, your credit report, and other personal info. When you’re selecting an agent, you need to check them out, too. Talk to people you trust, like family, friends, co-workers, or you’re doctor or lawyer about the agent they use. Have they ever filed a claim? What was their experience like?
You can also look at A.M. Best or Moody’s website to see ratings on the companies agents you’re considering represent. If you want to view customer service ratings for various carriers, check the J.D. Power website. It’s a good idea to check with the chamber of commerce and the Better Business Bureau as well.
Ask Prospective Insurance Agents the Right Questions
Even if everyone tells you how nice, or fun, or attractive an agent is, your main concern is the insurance he/she offers. Make sure to ask:
- Which companies they represent
- Can they meet all your insurance needs? Do they offer health, life, homeowner’s, car insurance, and more?
- Do they offer discounts for bundling policies?
- What is their claims process? Is there a 24-hour help line available?
- Do they do periodic reviews of you insurance portfolio?
Look at the Agent’s Qualifications
When you’re choosing an insurance agent, experience does count. How long has the agent been in the business? What type of professional designations does he/she have? If you see letters after the agent’s name, such as CLU (Chartered Life Underwriter) or CFP (Certified Financial Planner) ask them to explain what they mean. These letters let you know in which areas the agent has advanced training.
Interview Multiple Agents
It’s a wise idea to interview at least two agents, allowing you to compare qualifications, characters, and fees. This is also the time to investigate the stability of the companies they represent.
Don’t Let Sentimentality Sway You
Though your heart may be telling you to give your business to the neighbor’s son who is a brand new agent, this is not the time to get soft. Your insurance is your family’s safety net and is too important to risk. Choose an experienced, well-qualified agent. If you are able, you might take out a small policy of some kind with the rookie as well, but the majority of your insurance investments need to be handled by an experienced agent.
Choosing the right insurance agency needs careful consideration, but the time is worth the effort. After all, you may find you will have a life-long relationship with the agent you select.
About the Author: Debra Blair is a full-time writer and blogger with more than 10 years of experience in the insurance industry. She also enjoys writing about personal finance and is a regular contributor at CreditLoan.com.
