Quick Insurance Tips

Finding the best insurance agent is often the first step towards finding the best insurance policy. Below are some of the ways you can use to help you find the right agent for you and your family.

One-Company Insurance Agents vs. Independent Brokers

As an independent broker myself I certainly am biased toward independent insurance agents who work with several insurance companies. However, I started out as a captive agent. A captive agent is one who works for one company and has a contract that doesn’t allow him or her to sell the products of other companies. I worked for Metropolitan Life (MetLife now) and Mutual of Omaha. Both were good insurance companies. However, in many instances they weren’t the best company for an individual client. Most of the time, an independent insurance broker will offer better products. However my wife and I have our auto and house insurance with a captive Allstate broker because Allstate had the best deal the last time we shopped.

Insurance License Suspensions

Insurance agent suspensions and formal complaints against a broker should be a red flag. You should be able to check with the insurance department of your state to see if an agent has either of those. Not all suspensions are equal. I was personally suspended several years ago because I took the wrong continuing education course by mistake and didn’t meet the requirements necessary to renew my license. I took the right course shortly after I was told about the mistake and was reinstated shortly thereafter. However, many times complaints and suspensions have merit. Most ten-year agents have no complaints and no suspensions. Even one should make you cautious.

Education and Experience

Education and experience are important. An agent who has taken insurance courses beyond what the licensing department mandates is probably a good agent to work with. An agent with at least three years of experience will probably do a better job for you than a new agent.

Referrals

A great way to find an excellent agent is find one by referral. However, many people will refer an agent because they like him or her and got a good feeling when they met with him or her. This is valuable feedback. However, a referral from someone who has worked with an agent over a long period of time may be more valuable.

An agent whom you respect, who helped you with your house insurance, may be a good person to talk to regarding other insurance types he or she doesn’t sell. Agents are often good at spotting good and bad agents and reputable agents will tend to recommend other agents who are reputable. My reputation is on the line when I refer another agent so I do so with caution. Most other experienced agents feel the same.