7 Things To Do When Choosing an Insurance Agent

Choosing an insurance agent who is honest and knowledgeable is the first step in making sure you have adequate insurance at a good price.

Some insurance agents work solely for one carrier while others work for several. When you compare insurance agents, it’s important to also compare the carrier(s) they represent.

Even before you start talking with insurance agents, however, it’s important to establish all of your insurance needs, because bundling several insurance products with one carrier may mean a significant discount.

You will then talk with several insurance agents to find one you trust, someone who can make sure you have all your bases covered at a good price, whether you’re insuring a home, a car, a business or your health.

Let us guide you step by step below, so you can easily find the right insurance agent.

Steps To Take When Choosing an Insurance Agent

1. Assess All Your Insurance Needs

A. Revisit Your Health, Auto, Home, Life and Business Insurance Policies

Look at the coverages you have and what those coverage limits are. Decide if your policy benefits are sufficient or if you need more or less coverage for what you have now, e.g. Your car has lost value and is worth less than $4,000 so you want to drop your collision and comprehensive coverage on your car insurance policy..

Understand your insurance coverages before you begin comparing rates. You never want to buy a cheaper policy that is less comprehensive, unless it’s for a reason. Plus, you don’t want to compare apples to oranges when comparing. Don’t buy on price alone!

B. Read Exclusion Lists

There’s always a list of exclusions, so get familiar with them on your policy, because each insurer’s exclusion list is unique. See if there are gaps in your coverage based on what’s not covered. Jot down the type of rider you’ll need to buy to close the gap. E.g. you have aftermarket accessories on your car, which are not covered by your policy.

C. Nab a Discount (or Two!) Before You Switch

See if there are loyalty discounts with the insurers you currently have for car, home insurance and even business insurance. These three can be bundled easily, which is yet another discount! See how low you can go with your current policies before you start comparing rates.

D. Check Out Marketplace Health Insurance Plans

Depending on your income, you may actually pay less buying an individual plan in the marketplace than from your employer. Always compare rates before signing up.

Also, if you don’t have an employer-sponsored health insurance policy or need to buy a policy on your own for any reason, you can do so during the Open Enrollment Period, which occurs each fall. Or, you may be eligible for the Special Enrollment Period, if you had a major life change, like having a baby or losing a job or changing jobs (and more).

E. Create a Home Inventory of Everything You Own

As laborious as it sounds to document each piece of private property that you own, you’ll be thankful to have a home inventory if an unforeseen catastrophe happens or you are burglarized and need to file a claim.

Most importantly, without a home inventory, you’re taking a shot in the dark buying homeowners insurance or renters insurance because you don’t know what your coverage limits should be and how much claim payout you need to become whole again.

2. Prepare for Interviews With a Few Insurance Agents

That’s right, you get to interview and choose who best suits you in every way. If an agent makes you feel uncomfortable in the slightest, know that there are 10 insurance agents right behind him or her.

Finding the insurance agent is easy and it takes filling out one simple form (see next section) but it’s even more important to first know what to ask that agent to find out if they are the right fit for you.

11 Questions to Ask Potential Insurance Agents

1. What types of insurance do you specialize in?

If you’re buying health insurance from a car insurance guy who dabbles in health insurance, they may be knowledgeable about health benefits– or maybe not. Most often agents who specialize in health insurance typically also specialize in life insurance. Look to buy those two products from the same agent. 

2. How long have you been in the insurance business?

You can sometimes base your decision to work with an insurance agent based on their knowledge of the plans they offer. Sometimes, a very serious novice insurance agent may surprise you with how helpful they are! However, in most cases, you’ll want to work with someone who’s had some experience, even if it means they worked under the mentorship of another agent for a year or two.

3. Are you a captive or independent agent?

One type of agent is not preferable to another. However, one perk of an independent insurance agent is that they can offer you competing quotes or know ahead of time which of their carriers will give you a better deal.

A great thing about carrier agents is that they only represent one insurance company’s products so they know it like the back of their hand. You’ll be with someone who will know the ins-and-outs of your policy – at least if you catch a good captive agent.

4. Which insurance companies do you represent?

This question is just for independent agents who work with multiple companies. You want to know which companies they represent, so you can later do some footwork on those insurance carriers on your own.

5. Can you provide references from current clients?

This may be a pretty aggressive move to take, but a good insurance agent will have a couple of people top-of-mind, who will vouch for their professionalism.

6. What is your process for reviewing and updating policies?

What you don’t want is a rate hike without a complete review of your policy each year. While this may not be the case with a life insurance policy (unless you have the option to convert it), your health, car, home and commercial insurance require a full review. It’s during a review that you have the chance to go over which plan is best or which discounts may now apply, a year later.

7. Can we go over the list of discounts you offer?

If an insurance agent is not willing to go over all their discounts for you, they are not on your side. People can save a substantial amount of money based on discounts.

8. (For commercial insurance) Which businesses have you insured that are in my line of work?

Each business is unique but there are certain types of losses that a seasoned insurance agent can help you mitigate, if they’ve insured other businesses like yours. Be choosy when it comes to this factor.

9. (For life insurance) Can you educate me on what my best options are, based on my lifestyle and long-term goals?

Life insurance is complicated but if you’re forthcoming about what responsibilities you plan to leave this world bearing, you can find the right life insurance policy. Stay clear of agents who try to rope you into an expensive whole life policy without explaining why it makes sense for you.

10. (For health insurance) Can you tell me how much I’d pay each month in premiums and for each doctor visit with the plan I’m considering?

Don’t jump into buying a health insurance policy until you have a reasonable idea of what it costs each step of the way. A good health insurance agent will teach you how a health insurance deductible works and more.

11. How accessible are you, if I have to file a claim?

A good agent will not be impossible to track down when you need them. You want someone who will be a point of contact so you don’t make mistakes or misunderstand grace periods and deadlines when it comes to renewals and claims.

3. Compare Quotes for Insurance Online

SmartFinancial offers free quotes for all types of insurance: Auto, Home, Renters, Business, Health, Life and even private Medicare.

Just choose one of the types of insurance you need and fill out a form. Within a few minutes you will be contacted by one agent and up to three more.

Begin firing away your questions and discuss how the agent can help you.

Note: If you do this on more than one website, you will be bombarded with many phone calls so try to limit your search to one comparison engine at a time.

Do compare prices every six months or each year, unless it’s a life insurance plan.

4. Research Your Top 2 or 3 Potential Agents

After you talk with each of the insurance agents that reach out to you, decide which ones feel right for you, and do some research to see if your gut instinct was right. Here’s how to do it in easy steps.

1. Check Online Reviews: Look for the agent or agency on Yelp, Google and the Better Business Bureau.
2. Ask About Professional Associations: Are they members of professional organizations, like the National Association of Insurance (NAIA) and Financial Advisors (NAIFA).
3. Ask for Credentials. There’s nothing wrong with making sure your insurance agent is licensed in your state. You can verify this through your state’s insurance department website.
4. Ask About Complaints. Have there been any disciplinary actions taken against the agent? You may be able to do that by contacting your state’s department of insurance.

5. Evaluate the Level of Customer Service

How well is the agent treating you? Are they educating you so you feel good about making a decision? Evaluate the agent’s responsiveness to answer your questions with concrete answers.You’ll be happy you did if you ever have to file a claim and make policy changes.

Some agents offer financial planning and products, which may be beneficial depending on your financial goals. Trust your instincts when it comes to choosing an agent who also handles a financial portfolio, and make sure they have the right accreditations.

Steer clear of agents who use high-pressure tactics to sell a policy. A good agent will allow you time to consider your options.

6. Look for Transparency About the Insurance They Sell

Avoid agents who are not clear about their fees, commissions, or the specifics of the policies they are selling. After giving them detailed information, they should be able to tell you exactly how much you owe each month and what the policy covers and what it does not.

Go through all the exclusions in the policy with the agent so you’re both clear on when you can and cannot file a claim.

7. Ask if Non-licensed Employees Work at the Agency

In many states, it’s illegal to even talk about insurance with a shopper unless you’re licensed. There’s a reason for that: you deserve the right information and the best policy that matches your needs. If you’re being serviced by someone who is not licensed, move on to the next agent on your list or compare rates again to meet more agents.