There is no doubt insurance agents are experts in their field and can help you navigate the ins and outs of your policies. But are they always necessary? While insurance agents certainly are not mandatory, there are many reasons why you may want to work with one to purchase your insurance. If you have ever asked, “Do I need an insurance agent?” keep reading. We are going to lay down everything you need to know.
What Do Insurance Agents Do?
An insurance agent is a licensed professional who can advise and sell various insurance products. There are usually two types: captive and independent. A captive agent sells insurance for a specific insurance company, whereas an independent agent sells for a few different ones. The kind of agent you choose is imperative because it will determine the breadth of product availability and pricing options for the insurance policy you are looking to buy. For example, if you are looking for an auto and home policy, a captive agency like Allstate can provide that. However, an independent agent might be a better fit if you have some unique circumstances requiring a different type of policy a company like Allstate can provide.
Why Are Insurance Agents Necessary?
With so many online, direct-to-consumer insurance quotes, you may wonder why insurance agents are necessary. Surprisingly, just over half of all property and casualty consumers get their insurance through an agent distribution channel, and over 65% of all insurance buyers plan to use an agent to purchase their next insurance policy. This research suggests agents are beneficial and often utilized for all lines of business and from different demographics, and for many good reasons.
Insurance Expertise
You gain years of insurance expertise when you work with an insurance agent. As mentioned previously, agents are licensed, which means they have to pass an exam and stay on top of trends by continuing their ongoing education. This ensures they are knowledgeable on the policies that will best protect your assets. This expertise is highly beneficial for business owners where insurance is not always cut and dry. With many nuances, depending on the type of business you run, insurance agents are the best sources of information on what you need.
Insurance Options
Independent agents also give you the benefit of having different insurance options. They have access to a wide array of companies and can offer you more than you are able to get through an insurer directly. Since independent agents can represent multiple companies (up to thirteen property and casualty insurers on average), they have many options regarding pricing, eligibility, or product availability. In fact, any type of policy a consumer requires outside of the standard insurance market is often placed through an agent or broker.
Convenience
Agents also allow you the luxury of not worrying about your insurance. For example, suppose your home insurance policy is up for renewal, and the price has significantly increased. Rather than taking time to research other companies, get quotes, compare coverage, etc., your insurance agent can do that for you. If you decide to switch insurers, your agent can facilitate that, as well as cancel your prior policy. Agents will also file claims on your behalf and follow up with the insurance company for payment. For the modern consumer, this convenience is invaluable.
Locality
Lastly, insurance agents tend to be local, which means they are familiar with the insurance landscape of your particular area. They will know the insurance regulations, what is required in your state, and the prevalent exposures where you live. These agents generally live in your community, so they experience the same weather events, drive on the same roads, and face many of the same challenges and benefits of the area. And because they are local, they are right around the corner when you need them, which is another significant benefit.
Final Thoughts
While many things can be done online nowadays without any professional intervention, it does not mean they should be. Moreover, getting an insurance policy is no exception. Insurance agents are licensed experts whose sole job is to ensure you have the protection you need, and their expertise is incredibly beneficial. Be sure to find a local agency before you purchase your next policy. You will not regret it!
