Agency Auto Insurance

Access to car insurance is plentiful on the Internet as with nearly anything that may be purchased today. Despite the availability, there are some good reasons to be careful in making choices.

Consulting with an agency where the client will have the contact of an agent knowledgeable in the personal aspects of the individual insured's needs is not only supportive, it is worth the money in many cases.

Be sure to always compare auto insurance quotes before making any decisions. You can use the FREE comparison tool located above to get started!

Protections of the State Regulations

Given all that is at risk in driving a car, the practice of selling automobile insurance must be regulated including the requirements of board certification and licensing.

The person applying for a license will need to be or have one of the following:

• Accredited Advisor in Insurance (AAI)
• Chartered Property Casualty Underwriter (CPCU)
• Certified Insurance Counselor (CIC)
• Minimum number of hours of approved prelicensing study

The insurance commissioners through their respective state’s Department of Insurance (DoI) determine the requirements for companies and agents in the automobile insurance markets under the direction of the United States Department of Justice (DoJ).

Auto Agency Insurance

The insurance agent or broker may or may not have a Web-presence. He or she may or may not represent more than one insurance company. A captive agent is one who works for a single insurance company.

A general agent is an independent contractor operating as an independent agent or broker, and he or she is not an employee of any insurance company. As an independent contractor, the independent agent may represent numerous insurance companies producing clients for the company that actually insures them.

From the company perspective, agents are called producers. They are capable of offering comparative quotes and help people decide the best coverage for their needs.

The Integrity of the Automobile Insurance Policy

The “product” offered to the public, the auto insurance policy, must comply with state regulations as defined by each state’s Department of Motor Vehicles and as regulated by each state’s DoI to protect consumers and to ensure state laws are reasonable and fair.

Each DOI has their own mission statement though they must all work to foster a competitive and accessible market to all residents in the United States. Automobile insurance rates used to develop the premiums or the price consumers pay for their coverage are regulated by the insurance commissioner.

Given this, a company or an agency is not able to come up with their own prices, however, they are able to determine what credits, discounts or surcharges they may apply in such a competitive market.

Advantages of Going Through an Agency

There are multiple reasons for going through an agent to obtain automobile insurance. Primarily, the agent is a local business owner and part of the community. There is a higher trust factor when you conduct face-to-face business with a member of the community.

He or she will have a greater incentive to treat clients well in order to:

• Sustain business,
• Grow business through family and friends as potential clients by reputation, or word of mouth, and
• Provide sponsorship to local ball teams, for example, as a way to contribute to the community as well as advertise.

Comparing Rates with the Agency Auto Insurance

Comparing rates between carriers makes sense when there can be considerable differences. It should be noted that some of the differences may reflect different coverage.

A customer will provide some personal information such as their driving license, driving record, and all the persons in the household who may possibly drive the vehicle. As automobile insurance covers the vehicle, it is critical for managing the risk to know who may end up behind the wheel in case a driver must be excluded.

The following reflects some of the information contributing to the rates that determine policy premiums:

• Age, sex, marital status and residence address
• Insurance Score – the statistical probability of claims a particular insured may file
• Driving record
• Type of vehicle
• Choices of coverage, limits, deductibles

The Agent as a Trusted Advisor

It is possible to influence premiums with certain aspects of coverage, such as going without physical damage if the car is too old to make it worthwhile.

A higher deductible is often suggested as a means of gaining a higher credit on the price, however, this is another instance of where having an agent who can engage in a meaningful conversation on the pros and cons of this decision can impact the insured’s life.

Similarly, electing to carry the bare minimum of coverage may not necessarily be the best approach when compared against the risks. These and other reasons why a trusted advisor in the form of an insurance agent is invaluable.

Cautions Expected from an Agent

Cheap may be good for the wallet, but it is not always the best for asset protection, which is the intent of insurance, after all. Careful shoppers should be cautious of an agent who is only looking to provide the cheapest price.

Further, it serves to discuss the trade-offs with the cheaper coverage. What may have been eliminated in getting to that ballpark number? Since it is fact that rates themselves cannot be changed, is there a service that is not provided with the lesser priced policy? For instance, a no-service plan is not convenient in the event of a claim.

Having the agent’s care and concern when walking though the steps of filing a claim can make the process less stressful especially when the advice covers the tendencies of claims adjusters attempting to pay the least possible amount.

Complying with the Law

Automobile insurance is one of the most sensible lines of insurance coverage to buy aside from the fact that it is a legal requirement in order to drive in the United States. An agent will know what the state requirements are.

An agent who has valuable experience beyond the sales aspect may provide the necessary underwriting knowledge that helps to anticipate the needs, including coverage that may be added to the policy in anticipation of the potential claims with respect to the coverage criteria.

Some of these may include age and value of the car and experience of the driver.

Drivers who have experienced a conviction for DUI may be required to file a Certificate of Insurance form SR-22 filing with the state Department of Motor Vehicles to be allowed to drive. This can be accomplished through a licensed insurance agent.

Minimum limits coverage may be a choice one makes in order to save the most money. An agent knowledgeable in the claims that may exceed minimum coverage in an at-fault accident that caused injuries may advise against this choice.

The agent can explain that an attorney fighting on behalf of the injured party can come after the insured who is at fault to sue them personally for the difference. The potential loss to a higher wage earner who owns a home or other higher assets presents a risk that could use the protection of higher policy limits.

These details can be discussed with an agent who can be trusted to advise on the issues as they pertain to each individual.

An Agent Knows the Family History

An agency auto insurance policy provides the interest of an agent throughout the time spent with his or her business operation.

Having the support and trust in an agent who can best advice policy changes as they may need to occur through the typical life changes, such as having kids reaching driving age or having a car where the expense of comprehensive and collision coverage exceed the reasonable cost for the vehicle’s age go along with the knowledge of the family history.

Overall, there are far more advantages to relying on an agency auto insurance policy and all that comes with it. There is an added layer of feeling protected when the man or woman who knows the personal details of each insured and is able to attend to anticipated needs as well as having an informed discussion about them.

The balance of having the protection needed instead of coverage that will only be making the company money without serving a purpose is a given. Having the agent who can distinguish and explain these details is just another layer of service in obtaining this very important protection.

Use the FREE tool at the bottom of this page to start comparing rates today. Simply enter your ZIP code!