What are some advantages of working with an independent insurance agent?Asked by: Dr. Lesley Kozey | Last update: February 11, 2022
Score: 4.8/5 (20 votes)
- Responsiveness. ...
- Help Throughout the Claim Process. ...
- Faster, More Efficient Insurance Claim Processing. ...
- Better Communication. ...
- Personalized Coverage Reviews. ...
- Save Money. ...
- Stay With a Trusted Choice As Your Needs Change.
What is the advantage of using an independent insurance agent?
Independent agents work with a variety of insurance companies to get you the best coverage at the lowest prices. An independent insurance agent has access to many markets to provide you with the policies you need. This access to choices can mean lower rates, less restrictive policies, and better coverage.
Why is it beneficial to work with an insurance agent?
Being an insurance agent allows you to help people by protecting them from financial loss in the case of unexpected events. You can help your clients gather information, identify their needs, and match their financial situation to a policy that works for them.
Are Independent Insurance Agents good?
An independent agent can do important things for you: Agents have at their disposal the ability to quickly check prices and coverages with dozens - if not hundreds - of different insurance companies. Since rates vary widely an independent agent can very likely get you a better deal than you can get for yourself.
Is it important to have a local insurance agent?
It is so important to have a local insurance agent because they can help you understand these things and counsel you on what options are best for you. One-Stop-Shopping. Home, Auto, Life, Health, Motorcycle, Business, Farm, Commercial and more, all at one place!
The Benefits of an Independent Insurance Agent
How do independent insurance agencies work?
An independent agent is an insurance agent that sells insurance policies provided by several different insurance carriers, rather than just a single insurance company. ... Independent agents receive commissions for the policies that they sell and are not considered employees of any specific insurance company.
Who do independent insurance agents represent?
Independent insurance agents typically represent a number of insurance companies, or "carriers", and sell the products that most appropriately meet the needs of their clients. Independent agents typically are very well trained and knowledgeable of the complexities of the insurance market and insurance law.
Why do insurance agents quit?
Most agents quit because they can't get enough sales to support themselves and their families. The only way to change that is to learn how to get more leads, better leads, and follow up on them. People go on fact-finding missions online. They don't care who answers their question, as long as they get answers.
Do you pay more for insurance if you go through an agent?
It can be cheaper to buy car insurance online than through an agent, if you are willing to do the work of understanding and comparing policies. Using an agent can cost you 5% to 20% extra on a new policy in the first year and 2% to 15% every time you renew, according to numerous sources.
How do I choose an independent insurance agent?
- Know the Difference between Independent Agents and other Insurance Agents. ...
- Ask for Referrals. ...
- Decide If Location Is Important to You. ...
- Visit Their Websites. ...
- Look for Credentials. ...
- Interview the Independent Agents. ...
- Knowledge and Trust Are Key.
What is the difference between an independent agent and a broker?
A broker represents the insurance buyer. Agents serve as representatives of insurance companies and may be captive or independent. ... An independent agent represents multiple insurers. An insurance agency sells policies on behalf of insurers that have granted it an appointment.
Which insurance company is best to be an agent for?
- National General Insurance.
- Nationwide Insurance.
- Markel Insurance.
- Progressive Insurance.
- Selective Insurance Group.
- The Hanover Insurance Group.
- West Bend Mutual Insurance Company.
What is the difference between a captive agent and an independent agent?
In short, captive insurance agents are contracted to work for one insurance company and can only sell that company's policies. On the other hand, independent agents are contracted to work with a variety of insurance companies and can sell policies from multiple providers.
Does Geico use independent agents?
The GEICO website states: “GEICO never sells its products through insurance brokerages or independent agencies. GEICO Local Agents are exclusive agents for GEICO and partner companies and are not allowed to represent other insurance companies that compete with GEICO and partner companies in any way.
How much do insurance agents make per policy?
Annual commissions for auto insurance range from 10 to 12.5 per cent, although a few firms pay up to 13.5 per cent. Property insurance offers commissions of 20 to 23 per cent. So if you use an insurance broker and pay $1,000 annually to insure your home, upward of $200 a year would be going to the broker.
Why do so many insurance agents fail?
The number one secondary reason agents quit selling insurance was that they ran out of money. The second most common secondary reason agents failed selling insurance was that they ran out of prospects to sell to. The third reason was the agency wasn't a good fit. And the fourth was personal issues.
Is a insurance agent a good career?
According to the U.S. Bureau of Labor Statistics, the job outlook for insurance sales agents is positive, with an estimated growth rate of 5% between 2019 and 2029. This number amounts to 27,500 new jobs, marking a higher growth estimate than average for all occupations.
What is the most profitable insurance to sell?
- It should not come as a big surprise that auto insurance is the best selling and most profitable insurance product. ...
- Property or home insurance typically covers anything that can pose a risk to your clients' property like theft, flood, fire, and inclement weather.
Do independent insurance agents handle claims?
Although the insurance company manages the claim, independent agents often are the point of contact for insureds and play a crucial role in the claims process.
How do independent insurance agents make money?
Independent agents are paid primarily on commission. The more clients they serve, the more money they make. And as those clients renew each year, independent agents continue to make commissions of those policies. In general, however, independent agents receive larger commissions than captive agents.
Are insurance agents trustworthy?
I just read this article, which includes this: “According to an Accenture study, only 27% of consumers consider insurers to be trustworthy. And Deloitte found that only 11% of people have strong trust in insurance agents and brokers.” I've seen studies like this over the years.
Does State Farm work with independent agents?
* State Farm agents are independent contractors and are solely responsible for office expenses and decisions regarding the employment and/or management of agent team members employed by them.
Can an insurance agent have another job?
All levels of insurance agents/adjusters may sell insurance full or part-time provided there is no conflict of interest. ...
Can you sell insurance for two companies?
Unlike captive insurance agents, independent insurance agents are not contracted to work with one single company, and they can sell policies from multiple insurance companies.