Choosing the right insurance agent

Insurance agent personality

Have conversations with potential agents. Explain your situation and request a quote. Asking just doesn’t mean you have to work with them. This is an opportunity for you to become familiar with how they work and whether you are comfortable with them.

There are 2 types of insurance agents:

A. Independent Agents – These are people who own a small business and represent or are affiliated with multiple insurance companies.

B. Direct Insurance Agents – A direct insurance company sells directly to you without an agent, usually online.

Better choice:

Go with the Independent Agent, as they have the opportunity to offer you the best price and the best coverage for your needs. They have all the data that they can compare between insurance companies. They sell a variety of insurance and financial products, including property, life, accident, health, disability, and long-term care insurance. They are your one-stop-shop for insurance needs.

2. Credentials

An experienced insurance agent can advise when deciding what coverage and limits a client needs to protect their family and their investments. An insurance agent who is credentialed has certification of qualification, authority or competence, and a guaranteed professional in the field of the insurance industry.

Nice to have:

• CFP – Certified Financial Planner.

• CLU – Chartered Life Insurer

• CPCU – Authorized Property and Casualty Insurer

• ChFC – Chartered Financial Consultant

• PFS – Personal Finance Specialist

• CIC – Certified Insurance Counselor

• ARM – Associate in Risk Management

License

Before buying insurance from an insurance agent, make sure the agent is licensed to sell insurance. It is like a patient consulting a doctor and the doctor must be licensed before he can provide prescriptions. Every state requires insurance agents to have a license to sell policies. Some states require separate licenses to sell property and casualty insurance versus life and health insurance.

3. Customer feedback

While checking to see if the agent is licensed, also check to see if complaints have been filed against them. For the company, you can check the NAIC CIS or call your state insurance department. The insurance department can also inform you if a complaint has been filed against the agent. You can also check with the Better Business Bureau to see if any consumers have made complaints, or compliments, about the agents you are considering.

4. Ask questions

It’s okay to ask questions when looking for an agent. In fact, you must ask questions when deciding who you want to work with. Some good questions are:

• What are your areas of expertise?

• What is your scope? Are you local? Statewide? On a national scale?

• What is your experience in my industry? How many years have you been subscribing this type of insurance?

• Do you have customer references?

• How long have you been in business?

• How many companies does it represent? Which?

Of course, there are many factors to consider when choosing an insurance agent. Take note of the most important things when you trust someone to provide the best coverage for your business needs. You always have the option of changing agents, but it is much better to do your research beforehand to find the best insurance partner.