When you are shopping for insurance, you may wonder whether it is better to buy directly from the insurance company or to work with a local agent. In general, working with a local agent is better than trying to work directly with an insurance company for a variety of reasons. However, different types of local agents also exist. Keep reading to find out why you should work with a local agent and which type of agent will be most effective.
Benefits of Working with an Agent
Working with an insurance agent offers several benefits for consumers, including:
- The benefit of knowledge and experience – Insurance agents have in-depth knowledge about insurance policies and all of the discounts available, allowing them to help you find the coverage that is best for your needs.
- Good customer service – Local insurance agents can provide superior customer service, allowing you to have a constant point of contact who knows about your policies and your needs.
- A personal connection – Many consumers prefer working with a local agent because it is more personal. A local agent will be available to talk to you on the phone or in person whenever you have questions or concerns.
Some people think that they will be able to save money by working directly with an insurance company instead of talking to a local agent. However, even though local agents earn a commission for their sales, these commissions do not necessarily raise the cost of the insurance policies. Also, because local agents have insight, they may be able to find discounts that lower the cost of your policies even more.
Choosing the Right Type of Agent
Two primary types of agents exist: captive agents and independent agents. Captive agents are agents who are associated with only one insurance company. This means that if you call a captive agent, the agent will only be able to provide quotes from the agency that employs them. Independent agents, on the other hand, are affiliated with multiple companies. When you call an independent agent, the agent will be able to provide you with quotes from multiple companies to help you find the best policies for your needs.
Another perk of working with an independent agent over a captive agent lies in the independent agent’s flexibility. If your policy should be canceled or if you are otherwise unhappy with your policy, you won’t have to switch to a different agency. Instead, you can call your independent agent and look for a different policy.
Buying insurance is serious business, and getting the right policy with the right level of coverage must be your top priority. If you are interested in purchasing insurance from an independent agent, Smith Insurance and Financial Services can help you find the coverage you need. Please contact us today to learn more about shopping for the right insurance policy or to request some quotes.