Is It Important to Have an Insurance Agent?

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People always say that prevention is better than cure. We prevent untimely demises from happening by being more cautious about our driving, our work, the food we eat, and other activities that we do.

But did you know that another excellent preventive measure, aside from those mentioned already, is getting you and your family an insurance policy? What are the steps you need to take before applying for or buying insurance?

Read this guide, and find out what you have to do get yourself or your loved ones insured.

First of all, have you already selected an insurance company that offers you the services you need? If you want to insure your home, your car, your health, or other properties, you must check the lists of available companies that have policies to cover for these things.

Most insurance companies can best be researched online these days and there are already hundreds of insurance company sites to choose from. Before buying anything, it pays to know that the insurance company you want to approach is reputable and has excellent customer service.

Next question, is it important to have an insurance agent? Are there different types of these persons as well? Insurance companies often hire these employees to focus on specific needs of their clients, for example, there can be a life insurance agent, car insurance agent, home insurance agent, and dental insurance agent, who are all working for one big insurance company.

Before we can answer the inquiry on how important or necessary an insurance agent can be, let’s examine what roles insurance agents play, and what should they be doing for you, their client? There are two basic types of personal insurance agents; captive and independent agents and brokers.

Captive agents are those that have contracts with a specific insurance company. An independent insurance agent or broker offers the insurance products of multiple companies. Either way, agents are typically paid on a commission basis and receive commissions for as a long as you continue to pay the premiums and renew the policies you have purchased from them.

While it used to be the norm to purchase insurance through an agent, the Internet has begun to change that significantly. By enabling you to choose and apply for insurance online, many companies are able to reduce their cost of doing business, resulting in lower insurance premiums in most cases.

If you are savvy enough to plan the types of insurance coverage you need and research the terms, coverage amounts, premiums and other details online, you may well save yourself the additional cost of buying insurance through an agent or broker.

January 25th, 2008 by Local Fresh

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