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Try Independent Insurance Agents

Posted by Brett Carman on 8/4/2008 at 9:11 AM
Posted in Personal Finance

Maybe I am a bit biased and am so because I did my homework and researched the pros and cons of the “captive” agencies versus the” independent” ones. As an independent insurance agent, I feel good about having the ability to shop for the best possible product and price for my clients. I keep the carriers honest by doing the exact same each renewal. As a captive agent, I would have only one basic product available to offer my client and if we weren’t competitive with that particular client’s set of risks, I would have to reject them and send them down the street to a competitor. I hate to let any “crumbs fall off the table” and want to be able to offer a diverse product mix to be able to serve my clients diverse needs.

To me it seems to be a philosophical difference between the two: The captive agencies appear to be interested only in building their brand. They spend a lot more on marketing than do the independents while offering a fair priced product for an okay price. You won’t usually or consistently see one of the big named agencies buying the market by delivering the lowest price on insurance. While it IS ultimately important to properly protect your assets, there is no sense in paying more for A-Rated insurance than you have to. After all, it’s just business and there’s definitely nothing sexy about carrying a particular company’s ID card in your wallet!

Be sure when setting out to shop for your insurance that you make sure to read what the coverages are and understand what they do and don’t cover. Price alone should not be a determining factor when purchasing a policy. The reality is that entrepreneurs, real estate investors and every day people all need solid insurance coverage as part of smart asset protection. Paying more for any specific brand name won’t matter so don’t do it.

Brett Carman is a seasoned veteran in the real estate industry for over 17 years. He holds active licenses in real estate, mortgage finance, and property & casualty insurance. Offering a one-stop shop for his residential and commercial clients, he strives to not only educate, but streamline the real estate acquisition process. With a long and proven track record of success, he is uniquely qualified and has a passion for helping people achieve their goals in real estate.

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6 Comments

Posted by Jan-Myrtle Beach Real Estate on 08/04/2008 10:30 AM

Brett, can you recommend any alternate health insurance companies that can operate in South Carolina? I'm in the process of trying to choose some right now...and these independent people scare me to death. I've read so many horror stories online about companies like Mega-life and others. How can anyone know if you're really buying something decent outside of the well known companies?

Jan
Myrtle Beach, SC

Posted by member1832031 on 08/04/2008 11:38 AM

Could not agree more ... On all points. One question: You mention not to focus simply on price. While I subscribe to that school of thought, the insurance buyer, in both big and small deals, seems to be focusing solely on price, for he/she assumes that coverage is apples to apples, unless otherwise discussed. My question is: Have you found a way around the 'price-only' buyer when you are not the incumbent?

Thanks for your initial blog.

Posted by Jan-Myrtle Beach Real Estate on 08/04/2008 12:44 PM

I think the answer to the price issue is to ask the customer what he NEEDS the most. In example, I have very few prescriptions and they are mostly generic. I seldom go to the doctor except once a year or if I get the flu or something. So doctor's visits and prescription coverage is not all that necessary for me.

If I had kids, or a health problem like diabetes where I had to continually go to a doctor or had a lot of prescriptions (or non-generic ones) then it might be worth the extra high premium for me to get that coverage. The average customer (of which I am one) doesn't think of this unless the agent really probes.

As an agent, you may make more by selling a higher package. But if you recommend something that is out of my price range, I will close off and not want to even consider the company. And I would get suspicious if you suddenly reneged and offered something cheaper.

As an independent agent, you have to prove to me that you're trustworthy, whereas someone representing Blue Cross is not as questionable. If you convince me you have MY interests at heart, then I will trust you more.

I am speaking as I am thinking, and have been contacted by 3 agents in the last several months. 2 set off my alarm bells, and one I wasn't sure of. The one I talked to yesterday seemed to be much more honest and made me want to trust him because he didn't try to sell me a package I couldn't afford.

Just my two cents.

Jan

Posted by Business 2000 Foundation.com on 08/04/2008 5:21 PM

It is a different spectrum from a health, medical, dental or automobile insurance for cost, coverages and it's insurance deductibles.

Who can afford premium insurance when the deductibles are hurting the insurance quality and to it's quanity of the insurance issued and to it's selections. The fraud of false insurance claims really has doubled the problem when factoring in the deductilbles and to it's insurance price. We look for quality assurances that any claims submitted in good-faith to the insurance companies will at least be diligent in it's review, and justify the problem of paying for those deductibles. Importantly, at the time most needed, not just at the time of signing the insurance contracts. We look at all factors. And a lot to consider before the causality hits.

Posted by member1832031 on 08/04/2008 6:21 PM

Thanks Jan ... Yes, always, always find out what the buyer's needs and concepts are. I guess my issue is more directed to organizations and companies. Although I do have a question: Why do you see independents as less trustworthy than direct or captive agents?? As Brett mentioned originally, independents tend to put clients first, whereas a direct/captive agent drinks only the from the company's marketing punch bowl. Another question: Why did you take the 3 phone calls from agents, and what set off your alarms? What made the honest one honest? Tone of voice? Approach? Not trying to sell you right away?

Thanks for your answer .... Look forward to hearing more!

Posted by Brett Carman

on 08/14/2008 9:25 AM

@ Jan
As an independent, it's not so much the agent you need to be focussed on, it's the carrier. Be sure the solvency is there if it's Property you are covering. For health, we represent the big named carriers like Blue-Cross, Golden Rule (United Healthcare), Pacificare, etc. Check with the independents in your area to see what companies they quote and rep. As for Mega-life, a couple of my closest friends manage for that company and I have had that coverage. It works for some but it's not for everyone...

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