Paul Sanchez
When it comes to insurance, there are a few options for how to purchase a policy: through an agent, an independent agent, or directly from an insurance company. Captive agents work for a specific insurance company and can only sell policies from that company, whereas independent agents sell insurance for multiple companies and can offer more comprehensive protection. When choosing an insurance agent, it is important to consider factors such as cost, customer service, and the adequacy of the coverage offered. It is also advisable to research the agent's license status, any past complaints or misconduct, and whether they have been subject to any disciplinary actions. Online reviews can provide insights into a company's claim payment timeliness and overall service quality. Friends and family can also be a good source of recommendations for finding a reputable insurance agent or company.
| Characteristics | Values |
|---|---|
| Number of options | 3 (agent, independent agent, or directly from a company) |
| Agent characteristics | Work for an insurance company and only sell policies from that company |
| Independent agent characteristics | Sell insurance for multiple companies |
| Company contact | Over the phone or on the internet |
| Agent/company research | Verify the status of their license, check for past complaints or misconduct |
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What You'll Learn
Ask friends and family for recommendations
Word-of-mouth recommendations from friends and family are a great way to find a good insurance agent. People in your circle can provide excellent suggestions and help you avoid unhelpful agents. They can give you constructive feedback about their agents, which you can consider before making a decision.
Start the conversation with your family and friends in person, or gather information from several people at once on social media. Ask probing and objective questions about their experiences with their agents to determine if they align with your needs and expectations. For instance, you can ask about the agent's strengths, their responsiveness, and their expertise. If your contacts have already screened several agents, this can significantly shorten the vetting process for you. However, keep in mind that their positive experiences do not guarantee that you will have the same experience.
On the other hand, if your friends or family have complaints about a particular agent, it is important to take them seriously. While their negative experience might be unique to their situation, it could also indicate a broader issue with the agent's attitude or professionalism. To further validate this, look for online testimonials from other people you haven't met. Social media platforms like Facebook, Yelp, and LinkedIn often have reviews that can provide helpful insights.
While friends and family are a great source of recommendations, other professionals who deal with the same type of insurance you are looking for could also provide valuable suggestions. For example, if you need home insurance, a title company might offer a list of trusted agents they frequently work with. Getting suggestions from professionals in the industry can give you a broader range of options to choose from.
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Check online reviews
Checking online reviews is an important step when choosing an insurance agent. Online reviews are considered social proof that an insurance agent is reliable and trustworthy. Consumers are wary of agents with no reviews, and 61.2% of consumers view reviews as influential when selecting a new agent. Therefore, it is beneficial to check online reviews to ensure you are getting a good agent.
There are several websites where you can find reviews of insurance agents. These include Yelp, which allows users to click on a "Request a Quote" button to get in touch with an agent and ask insurance questions. Yelp also includes the usual batch of location and contact information, and images to help identify the office or agent. Another site is Superpages, which includes location and contact information, as well as photos and videos to give consumers a better idea of the office, staff, and service provided. WalletHub is another option, where users can filter their searches by a specific agent, agency, or company, and also directly ask providers questions through the "Answers" tab.
Facebook also has a business listing where customers can leave reviews and rate the business. Additionally, Google My Business is another platform where insurance companies and agents can show up on the popular search engine. Listings should include updated contact information and addresses, as well as images to help consumers identify the office or agent.
When reading reviews, it is important to remember that sometimes customers may leave a negative review for the insurance agency due to a negative experience with the insurance carrier, which are not the same. It is also beneficial to look out for insurance agents who respond professionally to negative reviews, taking responsibility and providing contact information to resolve the issue.
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Compare insurance rates
Comparing insurance rates is a great way to save money and find the best policy for your needs. There are several ways to compare insurance rates and numerous websites that can help you do this.
Firstly, it is important to understand the factors that influence your insurance rate. These factors vary depending on the type of insurance you are looking for. For example, when it comes to car insurance, the type of car you drive, your age, zip code, driving record, credit history, and vehicle information will all impact your rate. Other types of insurance, such as homeowners insurance, may consider factors such as the location of your home and its square footage.
Once you know what factors influence your rate, you can start comparing rates from different insurance companies. This can be done by using an online quote-comparison tool, such as Insurify, Compare.com, Policygenius, or The Zebra. These websites allow you to view quotes from multiple companies at once, without having to visit each insurer's website individually. They also allow you to purchase your chosen policy online or with the help of one of their agents.
When comparing insurance rates, it is important to ensure that you are comparing similar coverages, limits, and deductibles across different companies. A lower rate may simply mean less coverage, so it is crucial to understand what is included in each policy. Additionally, be sure to consider only reputable insurance companies.
You can also compare insurance rates by contacting insurance companies directly and requesting quotes. This can be done by phone, email, or through an online form on the company's website. However, this method may be more time-consuming than using a quote-comparison website.
Finally, remember that insurance rates are not set in stone, and there may be opportunities to save money or reduce your rate. For example, bundling your home and auto insurance policies with the same company can often lead to discounts. Comparing insurance rates regularly and staying up-to-date with any changes in the industry can help you find the best deals and ensure you are properly covered at the cheapest possible rate.
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Ensure the agent is licensed
When looking to contact an insurance agent, it is important to ensure that the agent is licensed. Selling insurance without a license is illegal, and you should make sure that the agent is licensed by the relevant regulatory body. In Texas, for example, insurance agents must be licensed by TDI. In New York, the Department of Financial Services is responsible for licensing insurance agents.
Each state has its own requirements for obtaining an insurance agent license, but there are some commonalities. Aspiring insurance agents must typically be at least 18 years old and complete a pre-licensing course. These courses cover a range of topics and can be taken online or in a classroom setting. After completing the required coursework, individuals must pass a state licensure examination. The insurance licensure exam is known for being particularly challenging, with a passing rate of around 60%.
The cost of taking the licensure exam varies depending on the location, ranging from $40 to $150 per attempt. Individuals must apply for their insurance agent license within two years of passing the exam. They must also submit a completed license application and pay the associated licensing fee, which can be paid via credit card, electronic funds transfer, or paper check.
It is worth noting that certain states have additional requirements for obtaining an insurance agent license. For example, some states mandate that insurance agents cannot have any past-due child support to qualify for a license. Therefore, it is important to review the specific requirements of the state in which you intend to operate as an insurance agent.
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Avoid agents with a history of complaints
When looking to contact an insurance agent, it is important to be aware of their history of complaints and to avoid those with a record of poor conduct.
Complaints about insurance agents can arise for a variety of reasons, including the use of unsolicited calls or high-pressure sales tactics, delays or unsatisfactory settlements, and policy cancellations. These complaints can be filed with state departments of insurance, which have regulatory authority over insurance companies and can help resolve issues and monitor patterns of complaints.
To avoid agents with a history of complaints, you can take several proactive steps. Firstly, conduct thorough research by checking online consumer reviews and comparing the complaint history of multiple agents. Pay attention to any disciplinary actions taken against them by the relevant regulatory body, such as the TDI (Texas Department of Insurance). You can also ask friends and family for recommendations and their own experiences with specific agents or companies.
Another important consideration is the financial stability and longevity of the insurance carrier. You can review their financial condition, how long they have been in business, and their complaint history over the past three years. A company with a high complaint ratio, calculated by dividing the number of complaints by the company's share of premiums, may indicate a higher level of dissatisfaction among customers.
By being diligent in your research and considering the complaint history of insurance agents and carriers, you can make an informed decision and avoid those with a track record of issues. This proactive approach will help ensure a smoother and more positive experience when dealing with insurance matters.
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Frequently asked questions
You can find an insurance agent by asking friends and family for recommendations, checking online consumer reviews, and comparing rates on websites such as HelpInsure. It is also important to ensure that the agent is licensed and has a good track record of customer service and claim payouts.
There are captive agents who work for and sell policies from a specific insurance company. On the other hand, independent agents sell insurance from multiple companies and can offer more tailored, comprehensive policies.
Some red flags to be aware of are unsolicited calls, high-pressure sales tactics, extremely low prices, and requests for cash payments or signatures on blank contracts.
Aside from cost, it is crucial to consider the level of customer service, the adequacy of coverage offered, and the company or agent's history of complaints or misconduct. Checking for a valid license is also essential, as selling insurance without one is illegal.
