Where to Buy Insurance

A Consumer's Guide

Purchasing insurance can seem confusing and complicated when you begin to examine all of the types of coverages that are available and the number of insurance companies that offer the same types of products. Shopping for insurance is a unique customer experience because the insurance "product" is intangible. The "product" is a contract and your goal is to find an insurance contract that benefits you the most.

Independent Agents

There are two types of insurance agents. The first to be discussed here is an independent agent. This type of agent is self-employed and typically represents several insurance companies. There are several advantages to using an independent agent. They are typically more diversified in the products they can offer, and they often have a good deal more education and experience than the alternative. Since they deal with many insurance companies, they often can find a company and policy that suits your situation best.

Captive Agents

A captive agent is one that works for only one insurance company. This type of agent is an employee of the company they represent. While this means that they cannot offer products from other insurance companies, there are advantages to utilizing a captive agent.

Captive agents will likely have a full understanding of every detail of the coverage products offered by their company. Since they do not deal with any other companies, they generally possess a very comprehensive knowledge of the policies they do offer.

Buying Online

Purchasing insurance online is more common than ever and there are numerous websites offering insurance products.

Many advertisements for insurance products seen on the Internet are actual agents that have simply utilized search engine advertising to reach out to clients. This is beneficial for them as it easily puts them in contact with clients that may be very far away.

Some insurance websites are actually hosted by an insurance company. In these situations, you can actually complete an application online and immediately obtain a quote for the coverage you choose.

In either scenario it is important to consider that while it may be easy to get in touch with the insurer when you need to obtain a quote, you will want to make sure that you have easy access in the event of a customer service issue or more importantly, in the event of a claim.

With all of the options available to you when shopping for insurance, the task can seem confusing. However, if you understand the simple differences in how insurance companies reach their customers, your ability to obtain the best value is greatly enhanced.

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