Insurance is often referred to as a \u201cnecessary evil,\u201d but it can be a valuable benefit too \u2013 if you have the correct type of insurance in the correct amount.\u00a0 Because insurance is confusing and expensive \u2013 and because you must purchase the right type and amount before you ever need it \u2013 it is important to pick an agent who will help you navigate the process and steer you in the right direction. \u00a0The following are some important tips to help you pick an insurance agent who can best help you meet your needs:<\/p>\n
If someone asked you who your insurance agent is, what would your answer be \u2013 \u201cState Farm\u201d or \u201cJane Smith?\u201d\u00a0 Your agent is the person who sells you an insurance policy, not<\/em><\/strong> the insurance company that issues the policy.\u00a0 Make sure you understand the difference.\u00a0<\/strong><\/li>\n<\/ol>\n Do NOT<\/span><\/strong> buy insurance over the Internet, over the phone, or by mail.\u00a0 Instead, pick an agent who has a physical office in the town where you live.\u00a0 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.\u00a0 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.\u00a0 If you buy insurance online or over the phone, you will not have a dedicated agent who knows you and your insurance needs \u2013 and whom you can hold accountable if your needs are not met.\u00a0<\/strong><\/li>\n<\/ol>\n Ask your friends who their insurance agent is.\u00a0 Are they happy with their agent?\u00a0 Is their agent responsive to their needs?\u00a0 Does their agent explain what types of insurance coverage they have and need?\u00a0 Is their agent\u2019s office well-staffed with assistants who can answer your questions?\u00a0 Does their agent have an office that is conveniently located to you?\u00a0\u00a0<\/strong><\/li>\n<\/ol>\n A captive agent is one who sells insurance for only one company –<\/strong> think Allstate, State Farm, or Farmers.\u00a0 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.\u00a0 A broker sells insurance from several different companies and can help you choose the insurance company that best fits your needs.\u00a0 Either type of agent is fine, but make sure you know the difference \u2013 and which situation is best for you \u2013 before you pick your agent.\u00a0<\/strong><\/li>\n<\/ol>\n Insurance agents get paid from the insurance company based on the number and type of policies they sell.\u00a0 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.\u00a0Your insurance agent\u2019s advice is not only free, it is invaluable!<\/span>\u00a0 In other words, although your agent won\u2019t 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.<\/em><\/em>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.\u00a0 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.\u00a0 Take a list of questions with you and ask the agent about any and all concerns you have.\u00a0 Ask the agent to recommend the types and amounts of insurance coverage you should have.\u00a0 Ask questions about each type of policy the agent recommends \u2013 what type of loss does it cover, how much of the loss is covered, what happens if you suffer a loss and don\u2019t have this coverage, etc.\u00a0 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.\u00a0 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.\u00a0 Each of those changes may require that you add or change your insurance.\u00a0 They may also change the cost of your insurance. \u00a0\u00a0\u00a0<\/strong><\/li>\n<\/ol>\n 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.\u00a0\u00a0 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.\u00a0 You may also be asked to sign waivers of insurance to waive (i.e. agree that you are not buying) certain types of coverage.\u00a0 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.\u00a0 If you are waiving those coverages, do you know what you are giving up?\u00a0 Do you know what benefits those insurance coverages would provide if you needed them?\u00a0 Can you truly afford to give those up?\u00a0 We strongly recommend that you NEVER waive PIP or UIM insurance!<\/strong>\u00a0 The cost of this insurance is cheap and the coverage is essential.\u00a0 You cannot afford to be without it.\u00a0<\/strong><\/li>\n<\/ol>\n\n
Pick a local agent. <\/strong><\/h4>\n
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Get recommendations from your friends.<\/strong><\/h4>\n
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Decide whether you want a captive agent or a broker. <\/strong><\/h4>\n
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Make sure the agent answers your questions.<\/strong><\/h4>\n
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Make sure you know what you are signing!<\/strong><\/h4>\n