7 Reasons to Work With An Insurance Agent
Direct-to-consumer (DTC) insurance sales have become increasingly popular in recent years. Just fill out a form online, submit it to the provider and bingo, you’ve got coverage. But is it the right kind of coverage for your needs, with adequate protection and at a price that fits your budget? While DTC might seem like a convenient way to go about insuring your home or car, you may well be missing out on crucial expertise and advice that only a seasoned insurance agent can provide. And that advice that could lead you to making entirely different choices when it comes to this critical component of your personal finances.
Here are seven reasons to consider working with an insurance agent rather than going it alone.
1. You Don’t Know What You Don’t Know
Insurance is complex, and policies can be tough to decipher — even if it’s not your first rodeo. If you have any unique or specialized coverage needs, an agent can help steer you toward the right policy. And while you may have only been party to a couple of claims in your life, your agent has likely seen many. So should it ever come time for you to file a claim, they can guide you through the process and help ensure it’s handled properly. If you go the DTC route, you may be on your own if you actually need to use your coverage.
2. Agents Know the Rules and Regs
Not all states have the same laws governing coverage requirements. For instance, drivers in Florida are only required to carry personal injury protection (PIP) insurance, whereas many other states require liability insurance. An agent who’s licensed in your state will be able to help you navigate the ins and outs of coverage requirements and advise on when it may be smart to have more than just the bare minimum required by state law. And should insurance regulations change over time, your agent is tasked with staying up to date on the latest developments.
3. Full Service Can Save You Time
Having a single point of contact who knows your situation well can help save you time when it comes to securing coverage. Your agent can provide personalized recommendations tailored to your circumstances, saving you the time and trouble of researching all the options yourself.
4. Agents Are Experts at Risk Assessment
Insurance needs can sometimes vary down to the local level, so you can benefit from working with someone who’s familiar with your community. Agents will know if there is a history of specific types of claims in your immediate area that could require extra coverage — such as sinkholes — to make sure you’re not underinsured.
5. Agents Can Help With Policy Management
Sometimes chatbots and FAQs just aren’t enough when it comes to service. When questions arise about your policy, you may need to speak with a knowledgeable professional — or you may require guidance and assistance making updates to your coverage. Agents can also provide you with advice if your rates go up and identify savings that don’t compromise your coverage.
6. Agents Can Save You Money
The lowest priced plans may not always give you all the protection you need, but an agent can help you balance cost with coverage. Agents who sell policies from multiple carriers can compare options and leverage their product knowledge to help you find more cost-effective solutions. They can also help prevent you from becoming over-insured by purchasing coverage you don’t actually need.
7. Agents Can Be a Key Player on Your Financial Management Team
Your agent can be an essential part of your personal finance team alongside professionals such as a banker, attorney, accountant, financial advisor and tax specialist. They can help you manage risks and advocate for you during an emergency. Through the personal relationship you develop, your agent can continue to advise you for years to come, playing an important role during key milestones in your life when insurance needs are likely to change — such as when getting married, starting a business, having children or purchasing a home or boat.
An Agent Can Help You When It Matters Most
Insurance is the foundation of your personal finances. If you get it wrong, the consequences could be life altering — having a professional at your side to guide you can help ensure it’s done right.
