Is it Cheaper to Go Through an Insurance Agent

Is it Cheaper to Go Through an Insurance Agent?

Olivia Reeve
By Olivia Reeve
contributor

April 23, 2021


  • Categories
  • Today there are numerous ways to buy insurance. Online insurance companies’ websites offer free and competitive quotes to buy any type of insurance without an agent. As explained by Ieuter Insurance Group, buying insurance online without the proper guidance could cost you more even though it seems you pay less. 

    Insurance agents always take big commissions for the first one to three years of the initial customer contracts. They keep on taking smaller commissions for contract renewals, which all increase the final price you have to pay as an insurance premium. It would be better to understand why it would be cheaper to go through an insurance agent, no matter the discount you can get when buying insurance contracts directly from the insurance company.

    Searching For Insurance Quotes Could Absorb Much Time

    When looking for insurance quotes online, you spend much time that you could use for your benefit. Even worse, people who try to call insurance companies and talk to a representative could find themselves more confused than ever before. Insurance companies market various products that have pre-fixed terms and conditions. Even the most trained individuals cannot read and understand all the various terms and conditions when signing a contract.

    Furthermore, quotes offered directly from insurance companies frequently have higher compensation limits and greater deductibles to make up for the lower premium they offer to unsuspected customers. An insurance agent may seem less affordable when you have no insurance claims during your contract period. However, on the unpleasant occasion of an insurance incident, you will suddenly realize the additional costs you need to pay out-of-pocket to fulfill your contract requirements. An agent may give you a higher premium but reduces your financial damage in case of an incident. 

    Online Insurance Quotes End Up Being More Expensive

    Online insurance quotes have a fixed price for all people. They tend to accept all the data you enter as real and legit. However, when you file for an insurance claim, there is no one to call but an automated call center. That impersonal type of communication with the insurance company ends up being a lot more frustrating and time-consuming than you thought.

    That’s the real price you have to pay for the lower up-front premium you are granted when dealing with the insurance company without your agent’s help and mediation. Not to mention that online quotes usually offer you a fixed amount of coverages that may not be suitable for your case. An agent can estimate your needs and customize your insurance premium according to your requirements. That will save you lots of money in case of an accident where the compensation could be bigger to anticipate your expectations.

    An Insurance Agent May Offer You Free Coverages

    Insurance agents have access to dozens of insurance companies licensed to sell insurance contracts. These companies may frequently offer promotional campaigns where they can deduct the costs of certain coverages. If you are close to your agent, you have more chances to benefit from these free coverages when the annual renewal time for your contract comes. 

    Your insurance agent has all the incentives to offer you these free coverages for as long as you are a loyal customer. It would be better to pay a higher premium and enjoy better services from real persons you trust than accepting a lower premium for impersonal services offered by your insurance company. 

    Local Agents Can Support Your Business

    When buying your insurance from local agents, it is cheaper than dealing with insurance companies. These agents are part of your community and can influence other customers to buy services from your business. Local business owners support one another. It’s a general trend that has made more communities develop and thrive.

    A local insurance agent supports your business by proposing you the right insurance plan. The incentives are for you to stay with him for a long time and enjoy a loyal partner who can answer any question you may have and become the median between you and your insurance company when claims arise. 

    The new online way of life has changed the pattern we buy insurance. More people are tempted to buy insurance directly from the insurance companies, estimating the yearly savings from the lower premium they offer. On the other hand, buying insurance from your agent could be the cheapest solution if you consider the time you spend away from your job and the need for extra communication in case of an incident requiring an insurance claim.

    Related Post


    error: Content is protected !!