Are Insurance Agents Necessary?

insurance agents
insurance agents

Having adequate insurance is an essential step towards financial security and safety. This is because it ensures that you’re adequately covered in case of unforeseen accidents and circumstances. However, there are different ways of buying and selling insurance out there. You can do it yourself by purchasing from the company directly or go through an agent. The better way depends on several factors. As such, in this article, we intend to help you understand if insurance agents are necessary.

As a start, insurance agents are of two types. Some work and sell for one company only. Others work through an agency to sell insurance for multiple companies. Whichever one you go for, here are the benefits you stand to gain if you decide to purchase your insurance through an agent.

1- The agent will assist you through the whole buying process. If you’re a novice in an industry, the best option is to get an expert to walk you through the processes. This way, you wouldn’t end up with avoidable regrets and losses.

2- If you buy your insurance through an agent, they’ll make sure you purchase the accurate needed coverage. They’ll also help you understand the different terminologies, terms, and conditions of each policy or coverage. To the layman, most of this information is complex and requires expert attention.

3- Agents that work for agencies representing multiple companies are armed with adequate information about these firms. Hence, they can help you compare prices and coverage to help you strike the best deal.

4- Insurance agents that work for only one firm are very vast about the pros and cons of the firm they represent. As such, they are in the best position to help you buy if you wish to choose their firm. Typically, agents are stationed in your vicinity so that you can get the most accurate information about the choices you have in your area.

5- Beyond insurance needs, an agent will help you navigate your way in the future. This is concerning financial advice, buying properties, taking loans, and hiring attorneys. They know the affiliated needs of their clients. Hence, they will help you further in your financial career after you get the right insurance.

6- Within your active insurance subscription period, these agents can assist you in dealing with any issue regarding policies, editing or filing a claim, and canceling a purchase.

However, purchasing insurance through an accredited agent has numerous benefits but is not devoid of some downsides.

1- It might take a longer time than necessary. This is because the time it takes to get an agent is considerably longer than purchasing the insurance yourself in some instances. When you have an agent, you tend to depend on them a lot since you hired them to do the rough work. This might elongate some processes that would have been quicker if you’re doing it alone. Hence, you might consider hiring an agent unnecessary if you don’t have much time to spare.

2- If you hire an agent that works for only one company, you will have limited options. As such, you might not get the best deal from better firms. Consequently, if you wish to change your company, you have to get another agent who might be too cumbersome. These types of agents also are limited in knowledge about firms outside their purview.

3- when you purchase insurance through an agent, they will get some incentives or commissions from the sale. This might increase the overall price in some instances. If you’re the economical type, you might deem it unnecessary to spend more because of an agent.

On the other hand, you can buy the insurance yourself, get the quote and make the comparison without external influence. Doing this is usually faster and is devoid of back and forths. It also affords you more control and convenience as you can get a subscription online. Getting your insurance without an agent tends to be more affordable as you don’t have to pay extra commissions.

In essence, we deem it necessary that you purchase your insurance through an accredited agent. We also implore that you use agents that work for multiple firms through agencies. This way, you can afford yourself the opportunity to compare different options to get the best deal. You also do not miss out on firms that do not sell without agents. Overall, you have little to lose from making sure you get the best hands-on insurance journey.


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