13 Oct

4 Things to Consider When Dealing With an Insurance Agent

There are many different kinds of insurance policies available for almost all categories of customers. Insurance agents assist prospective customers for their insurance needs. Whether you are a resident looking for personal insurance or a business owner seeking commercial insurance, an agent will be of immense help in getting the right coverage. Insurance policies can be hard to decipher with a variety of terms and exclusions that can be difficult for the customer to navigate if he has to file a claim. Customers often have a tough time understanding the types and procedures associated with insurance. In this scenario insurance agents act as a valuable intermediary between customers and insurers.

How Do You Benefit by Consulting an Insurance Agent?

The insurance agent is well informed about the developments in the insurance sector. He updates himself by attending industry events and through specialized periodicals. Some agents get industry certifications and training to deepen their knowledge. They are also able to use their extensive knowledge of the field to inform customers about the right kind of coverage. They can also help the customers in understanding how they can get lower rates. For example, a vehicle with an anti-theft device gets a lower auto insurance premium. Some insurance companies prefer to deal with insurance agents to save on the costs of customer acquisition and marketing, so they offer lower rates for quotes through agents.

 

What Services Does an Insurance Agent Provide?

In many states, insurance agents are expected to follow an ethical code of conduct and maintain good financial standards in their operations. The insurance agent offers information about the customer’s desired insurance coverage. After completing a consultation and assessment, the agent forwards the customer’s information to the insurer to get a quote for the proposed policy. The customer can accept the quote if she finds it suitable for her needs. After the first premium is collected by the agent, the insurer issues the policy. The agent also collects subsequent premiums during the policy renewal. If there is a change in the customer’s risk profile, the agent can intimate the insurer to amend the policy. The insurance agent can also guide the policyholder in case she wishes to file a claim with the insurer.

Insurance Agent

What Type of Insurance Agent Do You Require?

Customers can decide which insurance agent to approach depending on their needs. An individual may be comfortable with an agent dealing with a few lines of insurance, while larger businesses operating in many areas may prefer to approach agents who offer many types of policies. There are broadly two types of insurance agents: captive insurance agents and independent insurance agents. Captive insurance agents represent a single insurer and sell policies only from their affiliated companies. Customers can opt for such agents if they have decided to get a policy from the affiliated insurer. Independent insurance agents can offer policies from several insurers and are not particularly affiliated to any one company. Insurance agents can also be classified depending on the type of insurance which they deal with. Some agents may deal with life insurance exclusively. Others may sell only health insurance or general insurance. There are also agents who deal only in business or commercial insurance lines.

How do You Select a Good Insurance Agent?

Customers place great emphasis on positive word of mouth from an agent’s satisfied clients. They can opt to email the agent, talk to them over the phone or meet them personally to procure their chosen insurance policy. Insurance agents (http://www.wikihow.com/Find-a-Good-Insurance-Agent) can be contacted through their websites. As part of their marketing, insurance agents also place listings in business directories and run advertisements in local print publications and television channels. They also reach out to customers through direct mail campaigns, hoarding and flyers.