May 24, 2011

The Advantages And Disadvantages Of Using A Car Insurance Agent

There are several options for purchasing car insurance. Whether you decide to buy car insurance from a car insurance agent, online or directly from the company, there are several things to consider. This article looks into the pros and cons of using a car insurance agent when purchasing auto insurance.

One of the main advantages of dealing with a car insurance agent is getting to speak with a professional with a deep understanding of the auto insurance industry and its product and services, thereby giving you great recommendations that match your personal needs and circumstances.

Car insurance agents are trained to work with various insurance providers and are skilled in negotiating the best rates for their clients. Instead of handling everything on your own, they will take the task of reviewing your driving record, insurance history, credit standing, marital status and other pieces of relevant personal information. The agent will then present your insurance application to multiple insurance providers.

Dealing with a local auto insurance agent will give you access to accurate and practical information you will need, especially those regarding insurance regulations. If you are moving into a new location, you will surely appreciate information about getting the right coverage for an area that is, for instance, prone to flooding and earthquakes. Your local insurance agent will be more than willing to address all your location and regulation related inquiries.

Some people tend to enjoy the ability to maintain a personal relationship with their agents. In particular, they find comfort in being able to talk to a familiar voice when it comes to policy concerns.

One of the major disadvantages of dealing with car insurance agents is the possibility of being sold too much insurance. Agents earn through commission when policies are sold. It is therefore the goal of every agent to sell as much insurance as possible. If you are caught off guard, you may end up paying for more than what you actually need. Clients must simply be aware at all times that agents will have varied bonuses and commission schedules that can greatly influence their product offerings. They may push you toward policies that will pay them more.

You also cannot expect agents to keep in touch with you after making your purchase. They will send you an annual renewal notice but will not go the extra mile to ensure that you are still getting the best price available.

Another disadvantage is that dealing with an insurance agent is not as convenient as shopping for auto insurance online. Most Internet savvy individuals now enjoy shopping online, whether early in the morning or late at night. Unfortunately, an insurance agent is only available during business hours.