Buying Insurance: Agent vs. Direct

When buying insurance for yourself or for your family, you pretty much have two different option. You can either buy insurance through an agent or you can buy directly from an insurance provider. Each option has it pluses and minuses and The Insurance Scoop is here to help you find out which fits best with your needs.

Buying Insurance From An Agent

When buying from an agent, there are many advantages. You get the chance to work directly with an assigned insurance agent who is local to your location and they may be someone you actually know personally. Many insurance agents operate in the same town that they live in.

Having an agent really works in your favor when crisis hits. Whether it is a car crash, a flood or whatever mishap leads to you needing your insurance coverage, having an agent to work directly with is a great way to move through the red tape. A good agent will fight for you and get you the money you need from your insurance company. Some insurance agents also are licensed to sell multiple products. They can be your one stop shop for your insurance needs. Just as many large companies offer bundling services, agents also may be able to help you out with a deal if you buy multiple insurance products from them.

When buying from an agent you also end up with some negatives. Agents own their own business and they need to generate income. Agents add on additional fees to the insurance premiums you are paying each month. While this is not a huge increase in cost, it can bring your average cost up each month. Essentially, you are paying for the extra service you get by working directly with an agent. One other negative is you are dependent on your agent to push your claim through. Hopefully, you have an agent who is willing to work for you, but there has been cases reported where an agents does not go to the necessary extents their customers require.

Buying Insurance Direct

Buying direct from an insurance company, either online or over the phone can be a fast and easy way to get insurance. Nowadays, most insurance companies allow you to get a quote and purchase insurance online.  It saves you time and it also saves the insurance company money. The online quoting process is often much fast than purchasing insurance through an agent, so if timing is a factor for you, going direct may be the best option. Since the insurance companies are saving money by not having to pay a fee to the insurance agent, they can pass those savings back on to you. Thus leading to a smaller premium you pay each month for coverage.

While there are many benefits of working direct with an insurance provider, there are also some negatives. If you need a custom plan you often have to rely on a call center rep who is paid hourly and trying to get through the day. They may not be the most helpful person in your time of need. You also may run into issues when you have questions or have to file a claim. An agent has been through the process hundreds of times and can help guide you. Without someone to guide you through the process you may end up lost.

Welcome to The Insurance Scoop! Your resource for all things insurance. We're dedicated to providing you information you need to make an informed purchase decision.