How and Why to Choose an Insurance Agent
January 19th, 2010
Now that auto insurance policies can be obtained with just a few clicks of a mouse, many people don’t put much thought into choosing an insurance agent. But what are you really getting when your decision is based on how fast you can get it over with and how cheap a policy you can find? Often times, not much.
As the owner of an auto body repair facility, I deal with people every day who have just been in auto accidents. Many of them are just learning the particulars of their insurance policy. For some it is a rude awakening. Some are just realizing the impact of cutting towing or rental car coverage from their policy to save a few dollars off their premium. Some are learning that their claims adjuster isn’t so much looking out for their best interest. And for those who bought online and didn’t bother with a local agent, they’re finding they don’t have anywhere to turn for help.
Are all online insurance purchases a bad decision?… No. Will simply choosing any local insurance agent ensure you’ll avoid unpleasant surprises when you need to make a claim?… Nope. But looking for a few important things when choosing an agent, and taking the time to listen and learn about the policy details, will truly benefit you in the long run. Trust me!
The Benefits of Choosing a Good Insurance Agent and a Good Insurance Policy:
• When you need to file a claim, a good insurance agent will help you with that process.
• A good insurance agent can often refer you to a good body shop for repairs… not just a body shop that happens to be on their “preferred” list, but one that they have personal experience working with.
• A good insurance agent will have helped you choose an insurance policy that is a good fit for you. That means that there will be few, if any, unpleasant surprises when it comes to what’s covered at the time of the claim.
• And if problems arise with the claims adjuster, your agent can go to bat for you from within the insurance company and help to resolve your concerns. After all, your agent is the one most concerned with retaining you as a client.
It’s well worth the time an effort to find yourself a good insurance agent…so what do you look for? I can tell you that my customers who are most satisfied with their insurance company have agents who deal with them personally, not just to sell the policy but to answer questions, help file claims, etc. These agents are all about providing good old-fashioned service to their clients. One such agent is Bobby Whiteside of Client4Life Insurance. I enlisted his help to point out some important things to look for when choosing an auto insurance agent.
Better Value is More Than Price
As Mr. Whiteside points out, there are plenty of agents who will write an auto insurance policy based on price alone. Walk-in, call, or click is all you need do to get a quote these days. But if you don’t clearly understand the policy provisions, you may be excluding some important coverages. Or you may not be getting all the discounts you qualify for. Agents like Mr. Whiteside spend considerable time learning about your needs and explaining options and coverages to ensure you get a fairly priced policy that best fits your specific needs. It’s important to them that they sell policies that provide the best value.
Building a Lasting Relationship
Relationships start with how people are treated. Look for an agent who promptly returns phone calls or emails and is willing to go out of their way to get your questions answered. One good way to tell if your agent will be there for you when you really need him is to observe the effort he (or she) puts forth into building a relationship with you. If the agent’s business philosophy is to gain customers for life, your chances are much better that they’ll be there for you when you need help with a claim.
Service
Did your agent suggest you contact him first when you have a claim to file? He should. Many insurance companies tout their 24 hour Claims Service. Personally, I want an agent who understands the insurance company’s claims process well enough to help me file the claim and to insure my best interests are served. If I don’t know where to turn for collision repairs, I’d like a referral to someplace the agent has experience with. I don’t want to be referred blindly to an auto body repair shop simply because they are on “the list”. I want a body shop that someone I know and trust (my agent) knows and trusts. After all, my car is likely my second biggest investment.
The Financial Strength of an Established Company
Does the agent represent a well-established, financially strong insurance company? When you purchase a policy, you want to be sure that the company standing behind it will still be there in the future when you need to make a claim. Will they be likely and able to pay your claim in a timely manner? Check out the A.M. Best Rating of the insurer you are considering.
Don’t Rely on Commercials
Insurers spend millions on commercials to get your attention and gain market share. But take it from me, the actual service you get when you need it most depends largely on the local agents and claim reps. Take a little time to ask your friends and family about their experiences with their insurance companies and agents. This will likely be a much better indicator of what to expect. And keep in mind that each agent handles his clients his own way. The time you invest in choosing the right insurance company, and the right agent, will be well worth it.
For a list of local agents with whom I’ve worked and can personally recommend, check out my Good Contacts to Have page of this blog. Or, if you’ve got questions and would really like to chat with me or anyone from my staff to get the real deal about the insurance companies we see and deal with each and every day, feel free drop in or give us a call. Our contact info is readily available on our website at www.ACIBodyShop.com.
*Our blog has moved! Please visit us at YoursMineandCars.com. You’ll find this post and all others at the new site along with any and all new content. See you there!