In buying insurance policies, there are a lot of ways available to intending policyholders. Today, I will be explaining how to buy an insurance policy and why you should use independent insurance agents to buy your insurance policy.
Insurance is a basic necessity for individuals, businesses, and organizations. It is growing in demand and this is due to the overwhelming rate of risks and threats that encompass the average American on a daily basis.
For individuals, there is the need for car insurance, health insurance, life insurance, homeowners insurance, flood insurance, etc. Businesses and organizations need to have business insurance, cyber liability insurance, and others.
There is no gainsaying that insurance is needed by all and sundry and how we go about buying an insurance policy is as important as the insurance policy itself. I will show you how to buy an insurance policy and the best way to go about it.
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How to Buy an Insurance Policy
There are three (3) ways to buy an insurance policy today. You can use any of the methods below to buy insurance:
- Getting a free quote and buying online
- Using captive insurance agents
- Consulting independent insurance brokers and agents
Getting a Free Quote and Buying Online
Insurance companies today offer clients free insurance quotes online. Some even allow them to complete the insurance process online which includes paying for the policy.
It is one of the fastest means of buying an insurance policy but then it is not always a feature presented by insurance companies.
Additionally, trying to buy an insurance policy by getting a free quote from a company online comes with some downsides. The insurance company’s website may not provide you with adequate information concerning the policy you intend to buy.
Also, the estimated price of the insurance policy as stipulated in the insurance quote may be a fair comparison with the actual price of the insurance. With an agent, you stand a chance at getting a quote that would be close to the actual price of the insurance policy.
Using Captive Insurance Agents
A captive insurance agent is an insurance agent who works for a specific insurance company. It is the duty of a captive insurance agent to find customers for the insurance company and provide you with the best policy and coverage suited for your needs.
In carrying out their duties, captive agents enjoy a commission or a percentage from your premium when you eventually buy a policy they recommend. It is also possible for them to make money from the insurance company they represent but this is not always the case.
Working with a captive insurance agent will see you understand policy coverage and options and how much coverage you actually need.
Consulting Independent Brokers and Agents
While captive insurance agents are limited to a specific insurance company, independent brokers and agents cause you to enjoy multiple insurance options as they do not work with or represent a particular company.
When you consult with an independent insurance agent or broker, you are sure to get an unbiased flow of information, coverage options, and policy types. You are guaranteed the best customer service and honest recommendation as insurance brokers tell you how much commission they get when you buy a policy.
How You Should Buy Your Insurance Policy (Our Recommendation)
If you want to get the best insurance quotes and policies, among the three (3) options I have outlined above, buying from an insurance agent is the best. Buying from a captive insurance agent or an independent agent or broker is better than buying all by yourself.
You will enjoy better coverage when you buy an insurance policy after gleaning on the experience and expertise of an insurance agent. Nonetheless, it is best to buy from an independent agent or broker and I would show you why.
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Why You Should Use Independent Insurance Agents and Brokers When Buying Insurance
A lot goes into determining how much insurance cover you need, coverage options you should add or steer clear of, deductible rate, and much more. In view of this, I recommend using an independent insurance agent or broker when buying insurance.
I am going to be outlining several points to support my claims on why you should use independent insurance agents and brokers in buying insurance and not captive insurance agents.
- Captive insurance agents work with a particular insurance company therefore their recommendations and suggestions are based on the provisions available in that company. You cannot get anything outside the policy options of the particular company while independent insurance agents and brokers help you compare the policies of several insurance providers.
- With independent insurance agents and brokers, you enjoy personalized advice while viewing options from other insurance providers. In the case of captive insurance agents, you are not sure what is right for you as it is their duty to make you buy your insurance company from the company they represent.
- The motivation for many captive insurance agents is the commission they earn when you buy a policy. Hence, they can be motivated to upsell so as to receive a higher commission. As for independent agents and brokers, they seek better customer satisfaction instead of high commission rates.
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In conclusion, when you are buying an insurance policy and you need a detailed explanation of the kind of coverage you need and what company or insurance option can offer that, make use of an independent insurance agent.
If you already have your mind fixed on a particular company maybe because the company has good customer rating and recommendations, then you can use a captive insurance agent representing that company to buy your insurance policy.
Both independent insurance agents and brokers and captive insurance agents charge a commission while brokers charge a broker’s fee on top of a commission. You may not have the wherewithal to contact an insurance agent when buying your insurance policy.
Buying after getting a free quote online is the only option you are left with. You can still get a comprehensive insurance cover with this only it would have certain drawbacks.