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Why Auto Insurance Agent's suck.. And how to use them.

They make recommendations because they get a prize or vacation Misrepresenting a product Am I just another notch in some sales contest? Am I just part of their sales quota? Will they call me every day with a new product to buy? Do they share my name and info with other companies? Will they turn their back on me when I have a claim? Will they call me if something better comes along? What if they are on vacation and I need service? They talk down to me 5 agents calls me at the same time Low barrier to entry They just don't listen

Most people cringe at the thought of multiple insurance agents emailing, calling and bugging you for your business. But I know the contact is worth it because they will work to get me cheaper coverage, I don't mind using them from time to time. Think of a car insurance broker as your own professional shopper working for you. And if they don't do a good job, you don't buy through them.

Make sure your asks lot of questions. If they simply produce different rates without knowing about your driving record, occupation, vehicle use, etc. how do they know they are getting you the best deal?

You don't want discounts to be overlooked especially if you qualify for multiples. Now let the excitement continue while we discuss the types of agents:

Independent or Captive Agents?

I've usually used either directly written insurer or independent broker. I haven't had much luck with captive agents because for me they've always quoted really high prices. Still, I get some prices from them just to make sure I'm not missing anything. But then again that's my job. Still the Farmer, Allstate and State Farm Agents of the world have not impressed me price wise. Your mileage might vary.

When it's time to get the required insurance, I use an independent car insurance agent for help writing the best policy available for my needs. Unlike a captive insurance agent, who works exclusively for a large insurance company, an independent agent works from an unaffiliated office and me shop different companies for a policy. Below are some of the advantages and disadvantages of each type of insurance agent.

Captive Auto Insurance Agents

A captive insurance agent represents a national insurer. Farmers, State Farm, Allstate, etc. They stay attached to a policy and service the policy more often than independent agents. With captive agents, they will stay your agent until they change companies or you request a new one.

With Captive Insurers, they will only offer you the policies from their company. They often make a combination of salary and commission.

Direct Car Insurance Writers

These are the Progressives and Geicos of the world. The 600 lb gorillas. They have taken insurance shopping on the net to a whole new level. They also offer great service 24/7/365. The prices are a different story. I have found them to be as expensive as Captive Carriers.

Life Captive Insurers, Direct writers of auto insurance are limited to offering you the policies they write. Any comparisons direct writers give you will only be from informal surveys, not exact side by side breakdowns.

Independent Auto Insurance Agents

People like independent car insurance brokers because it saves them time and effort of finding an auto policy themselves. Give the independent agent your info and they shop the national and regional carriers they have agreements with. They are almost always commission only, so if you don't feel comfortable with their recommendations, they won't get paid.

I find it's good use an agent that specializes in car insurance. Many independents will tell you they specialize in everything, which as we know is impossible. They are afraid you might buy insurance through someone else and they could lose some potential commission. But you want an agent with intimate knowledge of the product, and that's just not possible to have an all knowing, all powerful agent.

If you buy through an independent auto insurance agent, you buy local. Look for the one's that sponsors the local sports team.

Claims Help

Remember that if you file a claim with your agent, their employer is still the insurance company. Although they may be able to assist you if the adjuster messes up, their loyalty lies somewhere between you and the carrier. They can help you get more for your claim, up to a point, depending on the insurer and how much access they are given to the adjuster.

The insurance agent's job is not to determine fault. Hopefully if they did their job, he got you into the right policy with more than the state minimal coverage. One of my pet peeves. Still, and agent might be able to explain where you are determined to be at fault or partially at fault. They should explain terms to you like comparative or contributory negligence. A car insurance agent not a lawyer and should not be giving you legal advice.

In fact, a good agent may inform you not to divulge specific injuries to them, or they could become involved in the claim process. A good agent will also have you keep records of all damages such as medical expenses or lost income. They will be able to explain your policy features and what's covered, like transportation to doctors appointments, and health assistants are also included in claimed expenses.

Auto Insurance Agent solution:

Regardless of the type of agent you use, you want the agent to find competitive rates for you. They take into account deductibles, policy limits, driving records, and type of vehicle. Visit JD Powers insurance ratings. JD Powers covers many car insurance companies. Your state Department of Insurance has info on company complaints. But they don't report civil litigation between the carrier and insureds (Pacer does that). Your state Department of Insurance also have license info on the insurance agent's and problems they've had.

Select a car insurance agent who contracts with reputable carriers. Happy customers are a good sign. Are they active in the community? You can find this out by checking if a company provides other types of insurance other than auto.

People who use a local auto insurance agents may provide some good leads. Auto body shops will know which carriers fight claims. Ask friends and family who already have auto insurance agents. Their experiences can be an accurate reflection of the insurance company.

How to use your agent summary

The right auto insurance agent will find you well priced coverage. They keep you as a customer by shopping your policy at renewal. The right agent will also making sure you are not with a company that fight's claims. and if things do go wrong at claims time, a good agent may contact the carrier on your behalf. Refer to this page when choosing a car insurance agent.

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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