Insurance is often referred to as a “necessary evil,” but it can be a valuable benefit too – if you have the correct type of insurance in the correct amount. Because insurance is confusing and expensive – and because you must purchase the right type and amount before you ever need it – it is important to pick an agent who will help you navigate the process and steer you in the right direction. The following are some important tips to help you pick an insurance agent who can best help you meet your needs:
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Understand the difference between an “Agent” and an “Insurance Company.”
If someone asked you who your insurance agent is, what would your answer be – “State Farm” or “Jane Smith?” Your agent is the person who sells you an insurance policy, not the insurance company that issues the policy. Make sure you understand the difference.
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Pick a local agent.
Do NOT buy insurance over the Internet, over the phone, or by mail. Instead, pick an agent who has a physical office in the town where you live. Over the course of your relationship with this agent, you may need to buy several different insurance policies, acquire new types of insurance, and report claims. It is important that you have a local agent who knows you and that a local office exists where you can sit down and discuss your insurance needs face to face with your insurance agent. If you buy insurance online or over the phone, you will not have a dedicated agent who knows you and your insurance needs – and whom you can hold accountable if your needs are not met.
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Get recommendations from your friends.
Ask your friends who their insurance agent is. Are they happy with their agent? Is their agent responsive to their needs? Does their agent explain what types of insurance coverage they have and need? Is their agent’s office well-staffed with assistants who can answer your questions? Does their agent have an office that is conveniently located to you?
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Decide whether you want a captive agent or a broker.
A captive agent is one who sells insurance for only one company – think Allstate, State Farm, or Farmers. If you have a bad experience with this insurance company and want to switch, you will have to switch not only your insurance company, but also your agent. A broker sells insurance from several different companies and can help you choose the insurance company that best fits your needs. Either type of agent is fine, but make sure you know the difference – and which situation is best for you – before you pick your agent.
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Make sure the agent answers your questions.
Insurance agents get paid from the insurance company based on the number and type of policies they sell. Part of their job is to give you advice about what types of insurance policies you need, how much insurance coverage you need, and how much it will cost. Your insurance agent’s advice is not only free, it is invaluable! In other words, although your agent won’t charge you anything for giving you advice, the advice they give you can save you a lot of money and headaches, if you follow it.When you first meet with your new insurance agent, make sure that you tell them about all the property you own, what condition it is in, where it is located, who uses it, and whether you own the property with someone else. You should also tell your agent what types of other assets you own such as stocks, investments, and bank accounts, so that you can make sure you are fully insured in order to protect your assets. Take a list of questions with you and ask the agent about any and all concerns you have. Ask the agent to recommend the types and amounts of insurance coverage you should have. Ask questions about each type of policy the agent recommends – what type of loss does it cover, how much of the loss is covered, what happens if you suffer a loss and don’t have this coverage, etc. Once you have an established relationship with an insurance agent, you should meet with your agent at least once a year to review the insurance policies you have, review any changes that have occurred in your life in the past year, and review your other assets to make sure you are fully protected. You should contact your insurance agent sooner if you experience certain changes such as adding a vehicle, buying or selling a home, adding a new driver to your family, or making improvements and changes to your home. Each of those changes may require that you add or change your insurance. They may also change the cost of your insurance.
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Make sure you know what you are signing!
Of course, you should always read what you sign anyway, but the penalties for not understanding what you are signing in the insurance context are severe. For example, when you sign an application to obtain insurance, you are signing under penalty of law, which means that, if you knowingly give inaccurate information on the application, your application may be denied, your insurance coverage may be voided, or you may be prosecuted for insurance fraud. You may also be asked to sign waivers of insurance to waive (i.e. agree that you are not buying) certain types of coverage. This often happens with automobile policies because insurance agents are required to have you sign a waiver if you choose not to purchase Personal Injury Protection (PIP) or Underinsured Motorist (UIM) insurance. If you are waiving those coverages, do you know what you are giving up? Do you know what benefits those insurance coverages would provide if you needed them? Can you truly afford to give those up? We strongly recommend that you NEVER waive PIP or UIM insurance! The cost of this insurance is cheap and the coverage is essential. You cannot afford to be without it.
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Make sure the office is properly staffed and has regular business hours.
Most agents have several employees who are also licensed insurance agents. If the main agent is not available, their assistants can often answer most of your questions. If you choose an agent who does not have any employees or only one employee, you may not be able to as easily reach the agent or have your questions answered. You should also make sure that the agent’s office hours and location are convenient for you and that you know how to reach the agent after hours, if necessary.
The attorneys at Nelson Boyd have over 50 years of combined legal experience in representing injured people and fighting insurance companies. If you have been injured, if you have an insurance claim, or if you just have questions about insurance coverage, please contact us at (206) 971-7601. Nelson Boyd – We Care. We Can Help. www.nelsonboydlaw.com
