Why Do I Need an Insurance Agent?
Modern technology allows anyone with a computer and an internet connection to get a basic insurance policy without talking to a human. So why would you need an insurance agent?
Danielle R.
Published November 27, 2020.
Buying insurance online is time-saving and convenient, yet studies show that it can come at a price for many consumers.
For most people, their home and cars are their most valuable possessions. Without the right types and amounts of liability, property, and accident insurance, you could face huge financial losses.
Key Benefits Having an Agent
- Personalized service: your agent will get to know you
- Licensed and experienced: she'll find the best policy for your needs
- Time-saving: she'll do the legwork for you - from research, to application, claims, policy updates and more
- Cost-saving: she'll find the right coverage at the right price, sometimes offer multi-policy discounts
- Claim assistance: your agent is here to help when you need any support
Personalized Service
Choosing a car insurance policy or the best car insurance company for your specific needs can sometimes be tricky. An agent will take the time to understand your circumstances and your priorities to make sure you have the right coverage, with the right policy terms, and at the right price.
Your insurance agent will be able to answer all your insurance questions, help you through the claim process and handle any changes in coverage or terms, if and when needed. Overtime, building a strong relationship with your agent will ensure you get the best service and support, as compared to a different customer representative each time you call.
A local agent will know your area, and what to look for when choosing a policy. If you have a to file claim, your insurance agent will be able to recommend the good body shops and glass companies in your area.
Why can’t I just buy cheap insurance online?
Millennial consumers (those born between 1980 and 1996) are more than twice as likely to buy insurance online, according to a recent Gallup poll. They are also the least happy with their online experience of any generation.
States impose minimum liability coverage amounts on homeowners and drivers across the country. Purchasing the minimum amount of insurance keeps you out of trouble with the police and your mortgage company, but it may not be enough to see you through a liability lawsuit if someone trips and falls when approaching your front door.
Liability lawsuit costs grow into the tens of thousands of dollars quickly. In some cases, the costs associated with hiring legal help are prohibitive, even if the court eventually rules in your favor.
If you have an insurance agent, they can help you understand how your insurance works to protect your financial stability. For example, your agent may understand that $100,000-worth of liability coverage isn’t enough to cover most slip-and-fall or trip-and-fall injuries in your area. They can talk with you about doubling your coverage while they compare rates to minimize the impact of adding coverage on your premium.
How can an insurance agent help me save money?
If you choose to work with an independent insurance agent, you’ll have the advantage of one-on-one attention from someone who understands how insurance works. They can talk with you about the coverage required by your state, your mortgage company, and your auto lender.
When those minimum required amounts aren’t enough, your agent can help you balance adding coverage with increasing your insurance premiums. They may recommend using a different insurance company to help you save money without sacrificing insurance coverage.
Not everyone has an ideal credit score, perfect driving record, and a history of zero homeowners claims. Many factors contribute to high insurance rates, and having an insurance agent on your side will help you get the lowest possible premiums.
Another advantage having an agent is that they might be able to find multi-policy discounts for you. Many insurance companies offer car, home, and financial services which, when combined, receive a multi-policy discount. An agent will know where to find the right insurance products and how to combine them to get you the best offer.
Many people believe that they’ll pay more if they buy insurance through an agent. Your insurance agent works on commission, but the insurance company pays it. Using an agent isn’t more expensive than buying insurance online.
How can an insurance agent help me find a good insurance company?
While you can buy insurance online without using an insurance broker or agent, and compare rates using an insurance comparison tool, you’ll have to turn over your email address and phone number to get quotes. Even if you are OK with sharing your personal contact information, you may not have access to reputable and trustworthy insurers that work directly with agents across the country.
An independent agent represents your interests. They work to find an insurer with great rates that will pay your claim when you need help.