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Types of Agents
Home » Insurance » Selecting an Insurance Agent » Types of AgentsAll insurance agents must obtain a license in the state in which they sell policies. Separate licenses are required for agents to sell life, health, property and casualty insurance. There are state exams, pre-licensing courses and laws that must be followed.
Independent Agents: An independent agent handles different types of coverage from different companies. This agent generally has a greater knowledge of different types of insurance policies and their coverage. The independent agent networks with many firms and policies to offer you the best coverage to meet your needs.
Direct Writers: A direct writer represents one insurance firm. The agent can offer different policies such as auto, home, health and life. The commission you pay the agent should be lower because you are purchasing the insurance from the source.
Insurance Broker: An insurance broker negotiates with different insurers for different types of policies. You may have auto insurance from one company and home insurance from another, but you would only have one agent. An advantage to a broker is his/her representation and loyalty to you not an insurance company. A broker is very savvy and adept at dealing with many companies and business negotiations. A broker's fees will usually cost you more because you pay for the expertise.
Increasing competition among insurance companies has been a boost to clients. They provide accessibility 24 hours a day, 7 days a week. Customer service reps are being hired to assist with routine questions, processing claims and attempting to sell more products to clients. Pleasing the customer is crucial in the insurance business. Above all, you must feel at ease with your insurance agent. He/she should listen to you, ask about your needs and offer you policies you really need and can afford. Your agent should be flexible, confident, disciplined, hard working and have the ability to be a problem solver while keeping their cool.
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