Why Work With a Local Insurance Agent

For the past couple decades, the national 1-800 insurance companies have been making a heavy push to win over new clients. Their main selling point is the ability to cut out the ‘middleman’ and offer greater savings on your insurance policies. However, whether or not a ‘1-800’ carrier can really save you money is a matter of debate and the national carriers have a hard time delivering the same level of service as a local agent.

Personalized Service: A local agent will always be able to provide more personal attention to the insurance needs of his/her clients than a national carrier might provide. For example, when you call a national company for a rate quote, you may talk to a customer service rep in a call center somewhere in the world. After your policy is issued, you will receive all the paperwork with an 800 number to call with questions. However, if there is a problem with the coverage or the promised rate, you must contact the call center and tell your story to whatever representative that answers the phone. If your issue is not resolved on that first call, you will need to start the process again with another representative the next time you call, and so on.

By contrast, a local agent knows you, your family, and your insurance needs. A relationship is being built and they are available to handle any needs that may arise. In addition, in the event that you have an emergency or need to file a claim, you can just call your local agent and they will take care of everything for you.

Consumers often wonder how much more it may cost them to have a local agent instead of an out-of-town carrier. While insurance costs will always vary based on zip code and individual needs, a local agent is usually able to offer a competitive rate, even going up against a national carrier. Here’s why:

Knowledge of the client: Your local agent knows in-depth what insurance coverage you need and just as importantly what you do not need. He/she will use this understanding to give you the best rates possible for your situation. This is difficult to accomplish with a ‘15 minute phone call’ to an out-of-town customer service rep.

Lower advertising costs: While 1-800 carriers claim to be able to save money because they do not have local agents, they fail to mention that they have much larger national advertising expenditures. The 1-800 carriers are seen all over the place; TV, radio, newspapers, billboards, just about everywhere. By contrast, your local agent relies mostly on referrals. Sure, the company they are affiliated with runs some national advertising with which they may coop with but it pales in comparison to what the 1-800 carriers spend.

When you add everything up, the cost of doing business with a local agent verses an out-of-town carrier is roughly the same. This coupled with unmatched personal service makes working with a local agent the best option.