Purchasing insurance can be a daunting task. Definitions, conditions, coverages, exclusions, and endorsements can all be perplexing and give you a headache. Buying insurance isn’t exactly exciting or enjoyable. But consider what your life would be like if you didn’t have it. Imagine losing everything you possess in a fire and not being able to get your life back on track because you didn’t have insurance.
You’ve probably heard me describe myself as an insurance nerd. When I ask them who their insurance company is, they either say “I don’t know” or tell me the name of their local agent. When your home, car, or business is damaged, the last thing you want to worry about is figuring out who your insurance company is, who your agent is, and how they can help you when your life has been turned upside down.
The goal of this blog is to discuss several factors to consider when determining where to locate your insurance company.
1. Insurance corporation vs. independent agent. People aren’t always sure who their insurance company is or who their agent is, as I indicated. Independent insurance brokers across the Midwest sell West Bend’s products. They not only sell our products, but also those of other companies, including West Bend’s competitors. The independent agent’s goal is to locate an insurance company that best meets your needs. This isn’t as simple as it appears.
Before and after the policy is sold, the insurance company (West Bend) collaborates with the independent agent. The insurance firm:
- Reviewing suggested coverages identified by your independent agent determines premium;
- Changes your policy as recommended by your agent or as a result of a change in your lifestyle (e.g., a new teen driver);
Please keep in mind that an insurance policy is a legal agreement. Your policy spells out what’s covered and what isn’t. Please examine your policy and consult with your independent agent to see how a future loss might be covered.
2. The history and reputation of the company. Investigate the insurance companies you’re considering. You can learn the following things by visiting their websites:
- It’s doubtful that you’ll come upon a company with entirely favorable feedback. If the information doesn’t address all of your queries or makes you uncomfortable, look into another company. You should feel confident in your decision, just as you do with any other purchase.
3. Know the financial strength of the insurance firm. If you’re dealing with a challenging claim, you don’t want to hear that your insurance company is unable to pay your claim due to bad financial results. Many insurance companies collaborate with third-party rating agencies, which assess a variety of characteristics as well as financial results before assigning a letter grade or score. Since 1971, A.M. Best Company has given West Bend an A (Excellent) or superior rating, which is the industry standard for evaluating insurers’ financial strength.
Coverage is number four. Choose an insurance company that offers adequate coverage for your personal or corporate requirements.
5. The cost. While price is an important factor to consider when buying insurance, it should not be the only one. “You get what you pay for,” as the old adage goes. There are a variety of reasons why insurance companies charge differently. You may get less coverage if you pay a cheaper fee. When you have less coverage, you will have to pay more money out of your own pocket in the event of a loss. A cheaper pricing could also indicate that the insurance carrier has entered a new market and hence lacks the experience that another insurer would have. Please discuss the differences with your agent.
6. The ease with which one can conduct business. Learn how to communicate with an insurance company. The following are examples of interactions:
7. Discounts that are available. Discounts are available from several insurance carriers. Find out what savings are available to you. West Bend, for example, provides incentives for:
Associations, groups, and corporations that participate in West Bend’s innovative Association Plus program are eligible for savings.
Referrals have a lot of influence. We are bombarded with marketing and promotional messages every day, which can be overwhelming. To learn about other people’s experiences with insurance companies, talk to family, friends, and coworkers.
Are there any details you’d like to share? I’d be thrilled to hear from you. Please post them in the comments section.
This essay is primarily meant for educational and illustrative reasons and should not be taken as legal or professional advice. Furthermore, this material is not an advertisement for the sale of insurance. For exact coverage details and insurance eligibility, please contact your qualified insurance agent. The terms, restrictions, limitations, definitions, and exclusions set forth in each policy apply to all policies.
What are the benefits of an insurance agent?
5 Advantages of Working with an Insurance Agent
- Spend less money. You have a far higher chance of saving money if you make the proper option and go with an independent insurance agent.
What are the benefits of being an insurance agent?
Why do you want to work in the insurance industry? Many people associate the phrase with one of two things: a terribly bored office worker or a slick, fast-talking manipulator selling policies that no one needs.
These caricatures, on the other hand, could not be further from the truth. Insurance agents work in an industry that is becoming more innovative and dynamic, attracting people from all walks of life.
Insurance is a vital and diversified sector that touches nearly everyone in the United States. There are few people who do not have insurance coverage of some kind, ranging from businesses that require liability coverage to individuals who merely want health insurance.
Whether you start your own business or work for a larger corporation, a career in insurance allows you to:
Do you need a bit more persuasion? Let’s look at the top five advantages of working as an insurance agent.
What is the difference between a captive agent and an independent agent?
Captive agents and independent agents are two types of insurance agents. Captive agents work for a single insurance company, whereas independent agents work for a variety of insurers and can offer products from a variety of companies.
What is the difference between an independent agent and a broker?
An insurance agency is a company that sells insurance on behalf of insurers who have given it a contract. A contract outlines the types of products the agency may offer and the commission the insurer will pay for each. The contract frequently specifies the agency’s binding authority, which refers to its ability to initiate policies. Some types of coverage may be bound by an agency, but others may not.
What is a local agent in insurance?
Insurance might be difficult to understand. In a word, the risks associated with your house will determine your home insurance costs. A local insurance firm will be aware of the finest deals to take advantage of and will have firsthand knowledge of the hazards you experience in your area. They also have an advantage over other insurance companies in a number of ways:
Local knowledge
Their local expertise is unrivaled. HUB International’s chief sales officer is Travis Biggert.
“Local agents are aware of potential local difficulties,” Biggert explains. “A local agent in Oklahoma, for example, recognizes the need of correctly explaining and covering wind and hail losses because the state is prone to severe winds and tornadoes. “An agent in California has a different set of challenges to deal with.”
Community is key
Local home insurance firms benefit from having a strong sense of community. Carolina Insurance Professionals in Raleigh, North Carolina, employs Jayson Greene.
“Local agents have firsthand knowledge of your home’s location and community, providing them an advantage over big-name organizations that may be based across the country,” Greene says. “Local agents who work and live in your neighborhood provide a unique level of care to homeowners looking for insurance.”
Adding that personal touch
The level of service provided by a local insurance agent is unrivaled. Home insurance brokers often create close, personal relationships with their customers.
“If my premium is late, he contacts me and doesn’t let my coverage lapse until I pay him,” Davis continues. If a less expensive policy becomes available, he even contacts me.”
Face-to-face interactions
When it comes to picking local homeowners insurance, the opportunity to interact in person on claims is a huge bonus.
“It’s always ideal to have someone that you can see in person for these things so you can get a ‘gut check’ on them,” says Biggert of HUB International. “Buying the correct insurance is very, extremely crucial when you have a claim.” It’s good to be able to go to an office and discuss the claim if necessary, and to have a local advocate on your side if and when it all goes wrong.”
Cut out standard algorithms
It is not always easier to do things online. Many homeowners believe that getting a quote online will save them time, but will it also save them money?
The online merchants were put to the test by Brent Thurman, head of Keystone Insurance in Provo, Utah.
“My brothers and I wanted to test the user experience of an online insurance shopper three years ago, so we went to the typical suspects we all see on TV and found something interesting,” Thurman says. “There’s very little information about what they’re selling, and there’s almost no opportunity to ask questions along the way. The websites essentially asked if we wanted “excellent,” “better,” or “best” coverage… but what does it mean?”
References are easy to find
Agents with a high number of positive web reviews are always a good place to start. Who better to ask for a referral than somebody you already know and trust? Check with a neighbor or a friend to see if they’re satisfied with their current insurance provider.
“When my husband and I decided to buy our property, my father recommended me to our local insurance agent,” Ashley Mayter, a local home insurance customer, says. We’ve been a long-time customer of his for over a decade! We compare our rates to those of other companies on occasion, and we always pay less!”
Don’t just be a number
Local insurance agents are more likely to have a more personal contact with their clients, as we discussed before. Those who choose a larger insurance company are frequently faced with the same written comments aimed at an account number rather than a real name.
“Would you rather deal with someone who only knows you by your insurance ID number, or would you rather engage with an independent agent who understands your individual needs and can help you through the process to find the best answer for them?” Greene, of Carolina Insurance Professionals, says.