Finding the Right Car Insurance Agent

Most people do not put enough thought into the process of finding the right car insurance agent, whether it's an independent agent that represents many different companies or a direct writing company like 21st Century Insurance Company. In reality, most people buy insurance on the spur of the moment, either when buying a new car, moving from another state or when switching companies for a lower rate. And while this may save you time in the short run, taking the time to choose the right agent at the beginning can end up saving you a lot of money and hassle in the long run. Here are a few helpful tips to make sure that you find the right agent and policy to meet your needs.

Think About the Future

When purchasing insurance, you should first think about your short, medium and long term needs. Should you select a direct writing company or would an independent agent writing for various companies suit you better? If children are present in the household 13 or over, get prospective quotes on the automobiles you presently own as if one of your children would be driving. Think about future car purchases. Will you be in the market for a new car within a year or two? Some companies have better rates than others on more expensive, high end automobiles like a BMW, Mercedes Benz, Land Rover, etc.

Advantages of Staying with One Insurer

Consider buying car insurance from a company you can build a long term relationship with. If you have a claim or two, and you are with the company for many years, then those claims would be less likely to result in a non-renewal of your policy. A few quick claims with a company you have been with a year or two may result in a non-renewal of your policy. Higher deductibles for comprehensive and collision coverage can help avoid this situation and will save you money. Claims, both small and large, cost money to investigate even if they are without merit or excluded. These are costs that eat away at a companies profit margin. Ultimately, a company must find ways to minimize those costs and in many cases it can be through non-renewal when too many claims or very minor small claims are submitted.

Convenience

When you buy insurance, most companies will require an agent to inspect the vehicle and take photos of any prior damage. That is another item to take into consideration. Direct writing companies like Allstate, Farmers and State Farm have convenient offices that are local to where you live to make it convenient to inspect your vehicle. While a a direct writing company may direct you to a location less convenient for that vehicle inspection. This is another point to weigh along with other factors (rates, the companies rating on service - both claims and underwriting - with the insurance department of their particular state).

Buying a Yearly Policy

You should buy your insurance on a yearly basis. If you incur a moving violation during the first six months of the policy, the company will have to wait to increase the rates until the anniversary of your policy instead of at the six month interval had you purchased a six month policy. That will be a huge advantage and especially true if it a youthful driver who gets the citation because the rates are higher for youthful drivers than adults with good driving records.

The Personal Touch

Another very important point about finding the right car insurance agent, although probably not as important as low, competitive rates offered by a company, is does his or her personality suit you and mesh well with yours? You must be comfortable and trust the agent you are selecting. Because if you don’t you will soon find yourself moving to another company. That can be detrimental to your overall long range plans. Are you the type of person that can and likes dealing with the impersonal touch of a mainly online direct writer getting your quotes, completing the application process and ultimately sending in your money without ever knowing exactly who you are dealing with. These types of situations lack the face to face contact that can allow you to argue your case better and possibly get better answers that are more favorable to you. Keep in mind, most people do not like to deliver bad news in person.

Other Factors

• Does the insurance company you select have offices in other states or are they a more regional insurance company? If you have a college age student with an automobile in another state this could be another important consideration
• How long has the agent you select been in business? Check with neighbors and the department of insurance about agent complaint
• If you own a home, does the insurance company you select allow a cross policy discount (10%-15% discount for each policy). That is another really important consideration. That discount alone can make up the difference between the rate of different companies.
• In the current legal climate, you should consider an umbrella coverage over your automobile insurance (and homeowners, too), especially if you have a good income, own a home or otherwise have other assets that can be accessed in the event of a large accident with serious injuries or resulting in a death. The cost of such a policy is small, usually less than $150 a year.
• Most companies offer a “standard insurance policy” that 90% of all insurance companies use as basic language coverage. However, there are a few companies that are more restrictive in “who is a named insured” and exclude certain young drivers until they are at an age to get a permit and/or license. That means you must notify the company to remove the exclusion and an endorsement adding coverage back on your policy. Something you should absolutely ask about before you purchase that insurance policy. 
• Some companies may even exclude certain vehicles that are not operational and/or certain recreational vehicles. So, if repaired, you must contact the company to get the exclusion removed and the car added back on the policy, before you drive that automobile. If you don’t and you get in an accident, you won’t have coverage and could end up with very serious out-of-pocket expenses. 

All of these are important steps in finding the right car insurance agent. Pick several agents, ask the right questions, make a list of pros and cons as to which points are most important and meets all or most of your car insurance needs. You will then be on your way to finding the right car insurance agent.