Whether you're protecting your personal home and
auto or your business and employees, choosing the
right agent can make the difference between getting
the best value for your insurance dollar and getting
taken for granted ... or worse.
Exclusive or Captive Agents
There are three main types of insurance agent to
consider when you are looking for insurance. The first,
called an exclusive or captive agent, is someone who
represents only one insurance company (a company
who uses these types of agents is known as a direct
writer). Looking at a captive agent is like going out
for ice cream and finding only one flavor ... vanilla. It
raises the question, "What happens if this particular
company doesn't offer what I want or need?" The
answer: tough. You have to seek a different carrier and
a different agent in order to get more personalized
coverage. What if the insurer that agent represents
offers products that are not competitive? Too bad. A
captive agent simply does not have the ability to offer
other carriers as an option. If you don't fit the mold or
meet the criteria of that particular company you have
to seek coverage elsewhere.
But perhaps the biggest question regarding captive
agents is loyalty. When push comes to shove or when
there is a problem will the agent side with you or
with the insurance company - essentially his/her
employer? Will the agent risk alienating his/her only
carrier - and potentially jeopardize their livelihood
- by going to the wall for you?
Semi-Independent
Then we have a host of so-called "quasi" independent
agents. These agents represent two or three carriers.
Even though there is more variety with a semiindependent
agent, drawbacks remain. An agent's lead
carrier requires the majority of that agent's business
to be placed with them; the carrier automatically gets
the "first look" at any potential client.
When searching for a semiindependent
agent, take a close look
at his/her yellow page ads or web
sites. Seeing a particular insurance
company predominantly shown
reveals that the agent is beholden to
that insurance company; the agent
essentially functions as a captive
agent, complete with conflicting
loyalties. Helshe may claim to shop
around for the best price for clients,
but what does that really mean?
Agents may compare one or two
other insurance companies. With
hundreds of insurance companies
out there, that's simply not a good
representation of the marketplace.
Passionately Independent
This brings us to the truly
independent agent. Being committed
to independence, this agent has
connections with dozens upon dozens
of insurance companies. This type of
agent also develops relationships with
wholesale brokers, making available hundreds of other insurance companies
and underwriting syndicates around
the country and around the globe.
The truly independent agent is not
pressured by or obligated to any
particular insurance company. If your
particular situation presents a risk
Company A doesn't like, or if for some
reason you don't like them, this agent
is ready and able to shop with Company
B, or C, D, E or heck, all the way to Z if
necessary. An independent agent has
the freedom and flexibility to get the
best combination of coverage, service,
and price.
In working with an independent
agent, you have the ability to maintain
that relationship even if you are dissatisfied with your carrier - for any reason. Simply switch over to a different insurance company. In fact, the best
independent agents trouble-shoot for their clients and
will proactively reach out to them recommending a
change. Additionally, if a problem or coverage issue
arises, you can be confident this agent is going to
battle fiercely to make sure the issue gets resolved
promptly and fairly. The independent agent willingly
takes on the insurance company on behalf of the
clienfi the client holds the highest priority.
Now thatis the power of choosing a truly independent
agent. Go ahead ...ask your agent when they last
went shopping on your behalf. Ask him/her to show
you two, three, four or even five different insurance
company quotes. You may then begin to see the
difference between the contenders and the pretenders.
Choose the agent who represents many quality
insurance carriers and uses that competition to your
advantage. After all, insurance is about protection
for you.
Article Directory : http://www.articlecube.com
