Choosing an Insurance Agent Part II
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This is a continuation on tips when choosing an insurance agent. In the previous article, I discussed about selecting insurance agents selling Life Insurance, now I will discuss the rest.
Health and disability insurance.
Many of the same agents who sell life insurance offer health and disability policies. So the first two life insurance tips apply here, too. In addition, however, when buying a health or disability policy, stick with agents who represent larger insurers. The bigger the policyholder base, the easier it is for the insurer to spread its risks and thus keep you premiums down. If you’re looking for a health policy and have a medical problem, be sure to meet with an independent agent. This type of agent is more likely to find you an insurer who will sell you coverage.
Homeowners insurance.
With homeowners insurers dropping customers of going out of business about as often as they take on new policyholders, these days you really need an agent on your side. The agent is the person who will go to bat for you if you need to file a claim after a casualty loss. Interview a half dozen agents. You’re likely to find that in many cases you’ll get the best price from a captive agent working for a single insurer with its own in-house sales force. As with life, health, and disability policies, buy homeowners coverage from a financially solid company. So make sure the agents you call sell policies from insurers rated no lower than A+ from A.M. Best or AA- from Standard & Poor’s. While many states have so-called guaranty funds to protect customers if their insurers fold, many limit reimbursement to $100,000 to $300,000.
Car insurance.
The advice here echoes that of finding decent homeowners agents, since both types of policies are sold by casualty insurers. You may be able to get the cheapest price quote from a direct seller such as Amica or GEICO, proffering policies through toll-free numbers. However, you may want to spring for a little more to have an agent you know who will help you collect if your car is in an accident or gets stolen.
One indicator of a helpful agent: When calling around for premium prices, see if the agent volunteers information about policy discounts. If you don’t hear any, ask what discounts are available and watch what happens. A decent agent will either tell you without prompting about insurer’s discounts for, say, policyholders with antitheft devices, or at least explain the discounts when asked. Nearly all insurers offer some kind of discounts today, so a cagey agent is one to be avoided.
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