An insurance agent basically helps you navigate the process of getting an insurance policy from a particular company.
Unlike insurance brokers, who basically help you shop for different insurance companies to find the best policy for you, insurance agents basically work for a particular insurance company, but we are going to take a look at “When Should I Use an Insurance Agent?” today.
If you are confused about going to an insurance agent and do not really understand what they can do for you, you should read this article. For the wrong reason, many people choose an insurance broker over an insurance agent. Insurance agents are basically the opposite of insurance brokers and depending on the circumstances, you can either go for an agent or a broker.
What is an Insurance Agent
Before we go ahead and start talking about whether you are going to need an insurance agent, let’s, first of all, consider what an insurance agent is. Keep in mind we have talked about an insurance agent several times in this article, but let’s give ourselves a refresher.
An insurance agent basically represents the needs of the insurance companies that they work with, and they can help you find the policies that are best for you with these companies.
They can basically help you find the best policy with the insurance companies they work with, usually at no cost. Also keep in mind that insurance agents are working for insurance companies, not the policyholders. They only help you find the best insurance policy for you through the companies they work with. Outside of the company that they work with, they will not be of much help to you.
What does an Insurance Agent Do?
An insurance agent’s job is to help you shop for the best insurance policy with the company with which they work. After getting the particular policy that you are interested in, they will also help you with the sign-up process for that policy.
Insurance agents do not work for the policyholder because they are representing the interests of the companies they work with and earning a commission when they make a sale or get someone to sign up for any of the companies.
There are so many things that an insurance agent can help you with if you do not have the time to do them yourself. Some of these things include:
- Insurance agents can assist you in determining the appropriate amount of coverage and combination for your insurance policy.
- They basically helped you sign up for an insurance policy with the company they work with.
- Manage all the paperwork that is involved in the enrollment process for a particular insurance company’s policy.
- Insurance agents are responsible for handling your policy updates throughout the entire term of a policy.
- If you file a claim, it is usually the insurance agent who investigates it and initiates the claim payout process.
These are some of the duties of an insurance agent, which are totally different from the duties of an insurance broker.
When Should I Use an Insurance Agent?
There are so many scenarios or circumstances that you might need an insurance agent instead of an insurance broker or instead of doing the work yourself. One such circumstance where you need an insurance agent is if you are new to insurance and do not even understand the type of policy that you might need.
In another circumstance, you might need an insurance agent when you have a particular insurance company in mind but need help navigating the particular policy you need. In this case, it is very wise to go with an insurance agent, especially one that works with the particular insurance company you need. Finally, if you want someone to help you sign up for an insurance policy, file a claim, and do other things, you need an insurance agent.
Why do many People not use Insurance Gents?
Many people who use an online insurance company do not require the services of an insurance agent. This is because they can simply go online to do whatever they want with their insurance. People from the ages of 18 to 30 are more likely to go for online insurance without even consulting insurance agents than to go for physical insurance with physical insurance agents.
What this means is that if you are going with an online insurance company, you might not need an insurance agent, which is one of the reasons why many people do not use insurance agents these days. So many people claim that buying insurance online is easier than going through a traditional insurance company. This is the reason people go for online insurance: they do not want to waste their time.
What’s the Difference Between a Direct Writer and a Captive Agent?
There is basically one difference between a captive insurance agent and a direct-writer insurance agent. The major difference is that captive insurance agents, just like the word “captive,” work for only one insurance company.
They are only there to promote the interests of the particular insurance company that they work with. If they decide to work for any insurance company, it will be a violation of their terms and conditions.
A captive insurance agent can only sell your policy through the company they work with. A direct writer is different from a captive insurance agent because they can only be reached online. Buying insurance from a direct-writer agent is a one-time thing because you cannot reach that particular agent again. Direct writers make their living by assisting customers in purchasing insurance online.
FAQs
What is the use of an Insurance Agent?
An insurance agent’s role is to help you find policies from the companies they work with so that you can sign up and start using each other’s policies from those companies.
They cannot help you compare policies from different companies that they do not work with, as an insurance broker will. So if you want to compare insurance policies between different insurance companies, you should go for an insurance broker.
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