Purchasing insurance can be a nuisance. There are so many aspects to cover that it can become overwhelming – coverages, exclusions, riders, only to name a few.

Additionally, every potential policyholder is looking for an insurance provider that caters to their unique needs and requirements. This is where the insurance agency comes into play. An insurance agency helps you by doing the shopping for you. While price plays a significant role in choosing an insurance agency, it is not the only factor to be considered.

Here are some of the factors we should look for while choosing an insurance agency.

 

Type of Agent

 

First of all, let’s look at the agents themselves. An agent is a person who licensed to sell an insurance product. We purchase our insurance, renew our insurance, and file our claim through them. An agency is a group of agents that work together.

It is important to know a couple of things when deciding on the type of agent. There are two broad classes of insurance agents:

 

• Direct Agents – These agents are employed by an insurance company to write, issue, and process their insurances. Under their contract, they are usually unable to offer policies from other insurance providers. This leaves Direct Agents limited in what they can offer.

 

• Independent Agents – Independent Insurance agents work for clients and not the insurance companies. Independent agents hold contacts with multiple insurance companies and can offer different policies to people with different needs. Freed from the obligation of any single company, they are more likely to offer you a better deal. These are the agents most likely to work within an agency.

 

 

Type of Insurance

 

Insurance agencies are on the lookout to cater to the public’s growing needs, lending to newer types of insurances and policies being offered. While a wide variety of choices is good for varying needs, it might confuse some people looking for a policy. Therefore, it is important to be clear about your needs and the type of insurance you require when speaking to an agency.

For instance, some agencies may only offer health or personal life insurance, whereas other agencies might provide personal life insurance in addition to  commercial lines that affect your business. And still others offer auto insurance and nothing else. So be aware of the lines of insurance that your agency sells. A well-rounded agency will offer multiple choices across a multiple lines of insurance.

 

Financial Stability

 

There have been instances where an insurance agency’s inability to pay claims has had a devastating impact on the policyholders. The financial stability of an insurance agency is an important factor to the person acquiring the policy.

One way is to acquire a copy of the company’s financial statements and gauge their growth and profitability over the years. Another way is to survey the ratings from accredited independent rating agencies, especially from the big three rating firms, namely: Moody’s, Standard & Poors, and Fitch.

These rating companies are known for their rigorous and strict methods for evaluating insurance providers and ascertaining their ability to pay back claims. Their ratings would give you a clear idea about a company’s financial credibility.

 

Customer Satisfaction

 

Insurance agencies deal in a very competitive industry. This makes ignoring premium service a cardinal sin. Providing excellent customer service produces satisfied customers. And that begins with the agent providing the service. Always assess an agent’s attitude and their eagerness to understand your needs and wants before they begin pitching their sales copy. An agent who listens goes a long way in ensuring you have a pleasant experience while purchasing insurance.

 

Reviews and Complaints

 

Customer reviews are one of the most effective referrals that help to determine the credibility of the insurance provider, as well as bring major weaknesses to the front. However, reviews should not be the most determining factor in deciding which insurance agency to opt for, but they should be used to gauge the agency’s ability to handle the issues they face.

 

Purchasing insurance can be a daunting task, but it is necessary, and in some cases mandatory. A well-researched agent can turn out to be a lifelong insurance associate who will cater to all your financial needs. A trustworthy insurance agency will check all the boxes on your list in what to look for when choosing an agent.

To learn more about insurance coverage and plans, contact our team at Protective Agency or call (877) -739-9367. Our licensed insurance agents will be happy to answer any questions you have!