10 Things to Remember When Looking for a New Insurance Agent

You might think it is easy to find a new insurance agent. Find the insurance company that has the lowest price, search for the nearest office, sit down with an agent, and boom, you have a policy. Or better yet, get on your computer and search for the best rates, fill out the application and you have a policy. But is this in your best interest? Are the lowest rates always the best coverage for you and your family? Lower price doesn’t always mean the best coverage, and when you get in an accident, you want the best coverage for all involved. 

Here are 10 things you should consider when choosing an insurance agent:

1. Captured Agents vs. Independent Agents: There are two different ways to buy insurance from an insurance company. Captured Agents are insurance companies that hire their agents, and those agents sell for that company exclusively. Independent agents are agents who work for the insured, not for a specific company. They have multiple companies that they work with to find the best policy for each person who writes with them.

2. What insurance product are you looking for? Some agents will write multiple lines of insurance. Are you looking for Property and Casualty Insurance (homeowners, auto, renters, umbrella, or RV insurance) or are you looking for Life Insurance, Disability Insurance, Long-term Care Insurance? Do you own a business? Do you have a lump sum of money and need an agent to help you understand annuities? There are so many products out there that you should be prepared when talking with an agent about what products you need.

3. What is their experience in the product you are searching for? If you are looking to buy long-term care insurance, you wouldn’t visit with an agent that is experienced in only Property and Casualty insurance, right? Look for agents who are trained in the insurance products you need. Don’t be afraid to ask what type of license they hold and what designations they may have. This may be one of the most important purchases you are making, and you don’t want to have it jeopardized because an agent is not experienced in that field.

4. Trust? This should be a no-brainer, but you would be surprised how many people will buy from an agent who is only worried about their paycheck. Make sure when you meet with an agent that your personality traits fit their personality traits. Don’t become a victim to greedy agents who are looking to fatten their wallets and sell you products you don’t need or want.

5. Questions you should be asking:

• Are you experienced in the product I am looking for? Do you have designations to back it up?
• Where is your area? Do you only sell to people in this area or are you regional, state, or national? 
• How many years have you been in business? What is your experience? What is your passion?
• References. Do you have people who are references I can speak to about your services? Would they recommend you for this service?
• How many companies do you do business with? Or are you a captive agent?
• How do I know you are giving me the best product I need?
• How are your commission-based?
• Anything else you may be questioning before your walk-in for your appointment.

6. Do your due diligence. A good way to start this is by searching for reputable agencies on Google. Do they have a high Google page? Are their Google reviews (if applicable) high with positive comments?  How are they on the BBB or the Better Business Bureau site? Do they have any negative ratings? Have they faced any lawsuits in the past? Lastly, check them out on social media. Do they have a presence on Facebook, Instagram, Twitter, LinkedIn, and so on? By doing your homework you could save yourself a lot of time and money.

7. Gauge expectations. Want to find out how good your prospective agent is? Ask them for a quote before committing to doing business with them. If the agent comes back with an appropriate quote; explaining what the coverages are, what the exclusions are (if any), and is a price in your range, then you know you have an agent who will live up to your expectations. And when those future products are needed down the road, you will have that confidence in your agent to help you find the products you need.

8. Watch for the fine print. Once your agent gives you a proposal, you should take your time and review the details of the proposal. Companies offer policies with different exclusions or coverages. Be proactive and read the fine print. What are they covering or even more important, what are they not covering? Make sure the agent answers all your questions and you are satisfied with the product you are buying. Make sure you work with your agent to ensure you have everything you need in the policy, even if that means paying a little more.

9. What comes after you bind the coverage? Your agent job is not over when the policy is written. In fact, It is just starting. Their customer service is what will retain you as a customer service. Are they calling you periodically to ask if you are needing any other services? Did you start a business? Did you start having children? Are you thinking about your retirement yet? There are a hundred different questions your agent can call and ask you about. This is what differentiates a good agent from a great agent.

10. Products change and people change too! Just as products can change, so can people. Stay in touch with your agent about new products you may be interested in. Keep an eye on their social media. Stop in and say “hi” occasionally, set up an appointment with your agent just to review your current life status. Are there new laws or changes you are interested in looking into? Whatever the life event, stay in touch with your agent. 

If you follow these 10 tips to consider when choosing an insurance agent, your experience finding a reputable, trustworthy agent should work out positively for you and your family. Remember, you can always switch agents, but it is much better to do your research beforehand and find a great one that you can work with for many years to come.

Author Bio: This post was written by our special guest. Brandi Brecht the CEO and Managing Partner of Commnity Educators, LLC. Brandi has several years of experience helping insurance agents get their continuing educations credits in Iowa, Texas, and Nebraska. This experience gives her the credibility to help people find a good insurance agent. If you want to hear more from Brandi or have questions for her please leave them in the comments.