Going About Selecting the Right Insurance Agent

When you select a home or an automobile, you take your time to decide what the best fit is for you. Shouldn't you do the same when it comes to selecting an insurance agent to manage your coverage needs?

Consumers can look for an independent agent or a captive agent to meet their insurance needs. For those not aware, an independent agent can have contracts with a number of different insurers, while a captive agent is tied exclusively with one company. Independent and captive agents are representatives of the insurance company, obtaining a commission from the insurer.

Before you go searching for an agent, researching insurance and what your needs are will go a long way in assisting you to make informed decisions.

When you do look for an agent, first look to see if there are any referrals from friends, family or co-workers.

According to a National Association of Insurance Commissioners (NAIC) survey, 79 percent of consumers who were quizzed stated they asked family and friends for insurance advice, while 65 percent noted they also questioned colleagues and social acquaintances.

Among the items to inquire regarding an agent would be their customer service, their knowledge and friendliness, how they have handled claims in the past, how often their rates may change. etc.

Searching on the Internet gives consumers a chance to review information about the various agents, as many companies publish lists of their licensed agents online. Consumers can also look to trade associations or other business owners to inquire about insurance needs.

Consumers should keep in mind that not all insurance companies utilize agents to sell their products. You can decide to do business directly with companies, but be sure to note that the company is licensed in your state and also look at the company's financial stability.

It is also a good idea to chat with several different agents instead of automatically settling on the first one you come across. This gives you the opportunity to get to know them and see how their services could benefit you.

Another important factor is finding out if any complaints have been filed against the agent and company. It is simple to check with the NAIC's CIS or the Better Business Bureau (BBB) to determine if complaints were filed and how serious they were.

Consumers should also determine the FSR (financial strength rating) of the company prior to obtaining a policy with them.

There are five major rating services, and each maintains their own criteria for rating that utilizes a combination of qualitative and quantitative numbers to determine the company's overall strength. Typically, a letter rating from A to F is given to the company.

Finally, prevent yourself from becoming a victim of insurance fraud when buying insurance from a company.

It is important not to relinquish any personal information such as your Social Security number or bank information over the phone before verifying legitimacy of the company. You should also seek all copies of paperwork you signed and maintain a copy of the payment receipt or check for the initial premium payment you provide the agent with for the policy.

In the event you do not receive a copy of the insurance policy detailing your coverage and its limitations within one month of your purchase, call the company.

Shopping for insurance doesn't have to be a hard task; protect yourself when doing so in order to come out ahead.