G&N Asks Should You Go Direct or Through an Insurance Agent?

SOUTHBOROUGH, Mass. - Dec. 2, 2014 - PRLog -- When your client needs home insurance, he or she has two options. The first is to purchase insurance directly from an insurance provider. The second option is to work with an insurance agent to ensure that all of your client’s coverage needs are met.

Here are a few differences between securing insurance directly through a provider and partnering with a knowledgeable agent:

Buying Direct

We’ve all seen the television commercials. Lots of big-name insurance brands are out there competing for customers by claiming to offer the fastest, the cheapest, or the most hassle-free policies available. Does this speedy method really capture all of your client’s specific needs?

Large national insurance companies, that devote most of their resources to online and TV advertisements, process their clients’ sales and service requests in regional call centers or outsourced direct response teams.  Not only can this lead to a lack of local and state insurance knowledge, but many of these customer service representatives have a varying degree of experience. Many sales representatives can be new to the business and may not have the knowledge or experience to offer the sound advice your clients need.

When your client purchases a policy from a direct writer, they are offered one company, one product, and one price.  The representative offering this solution does not have options as they are captive to that particular insurance company.  This fact can place your client with an insurance solution that is not in their best interest, as there are hundreds of factors that influence the pricing and eligibility of certain insurance products.  Some companies are competitive with auto insurance but not on home.  Others offer overpriced products due to the age or location of the property to insure.  Many insurance providers cater to a specific niche and if your client doesn’t fit they will not be getting the pricing or product they deserve.  This is a critical shortcoming that many overlook.

Buying Via an Agent

There cannot be enough said about personalized, local attention in an automated industry where self-service is replacing customer service.  Rather than dialing through automated options at a large company, wouldn’t your client rather pick up the phone and call a licensed agent directly whom he or she has built a relationship with? Wouldn’t your clients rather have the option to walk into an office and have a face-to-face conversation with someone they trust?

Independent insurance agents have a local presence in the community they serve. The best agencies have access to dozens of insurance options to ensure your clients receive the customized solution they deserve. They are experts in their arena and have the customer service focus needed to provide your client with options.

When it comes time to file a claim for loss or damage, most people would prefer to have assistance navigating the claims process rather than being left alone. An agent is experienced in fighting for the money your client deserves and can act as both a liaison and a buffer between client and insurance carrier. Since independent agents are not owned or influenced by the carriers they represent, they uniquely serve as your clients’ advocate throughout the claims process.

As an added benefit, many insurance agents are qualified to sell multiple types of insurance policies, such as auto, home, business, and life. Since they typically work with dozens of insurance providers, agents can help find the best-fitting policy with multi-policy discounts to lower the cost.

The Bottom Line

Counseling your client to partner with a trusted insurance agent eliminates a level of risk inherent to dealing directly with a large provider. Since buying a home is likely one of the biggest financial investments that most people will take on, the security of partnering with a trustworthy insurance agent can deliver a level of protection for that investment that a large company is unlikely to provide.

For more information from the experts over at G&N Insurance, visit www.insurewithgn.com.