Here are some common statements I have heard from people as an insurance agent.
“My neighbor told me I am paying too much for my insurance.”
“My car insurance premiums should go down as my car gets older?”
“My insurance agent told me that if I switch to a new insurance company for a better rate the new company will just raise my rates on renewal.”
We all get unsolicited advice from friends, co-workers, and family. Sometimes we get bad advice from people who we think should know what they’re talking about.
Here’s the truth: Insurance, like most important things in life, is not that simple. As much as we want it to be a simple purchase, it’s not. Shopping for insurance is something most people do not like. I think this is mainly because they don’t know who to trust.
Everyone has an agenda. I do.
My agenda in this article is to help you realize that if all you know about your insurance is the price you are paying, you know the least important thing about it, no matter how cheap it is.
If you have an insurance agent that you go through to purchase your insurance, it is their duty to educate you on identifying your insurance risks and then offer options that will help you protect yourself. Unfortunately, many have become just order-takers that ask you what you want your coverage to be and then race to see if their price is cheap enough for you to buy.
No one wants to overpay for anything. Insurance is invisible. It’s a contract. It’s a promise. The feeling of overpaying for anything like that may be inevitable.
So what are you really paying for when you buy insurance? It should be the peace of mind that you will have the financial protection necessary after a loss?
Some insurance companies and agents will say they offer great customer service. I hope so. But shouldn’t great customer service be standard with any product or professional service?
Of course it should, but the fact that people are still getting their insurance advice from everyone except their own insurance agency or company tells me we have work to do as insurance professionals.
Since insurance is invisible, there has to be a level of trust established. An insurance commercial on television, no matter how clever or funny, doesn’t establish trust. This is where a human interaction (hopefully a relationship) is necessary.
I don’t mean that in a touchy-feely way. I mean in a similar way that we have trust in our doctor or accountant. You probably don’t have them over for dinner, but you count on them helping you and giving clear, honest advice regardless of what the bill is going to be.
This is what people are paying for but not usually getting from their insurance company or agent. A cheap price is important, but it doesn’t foster trust.
I know what many of you are thinking, “My doctor and accountant aren’t salespeople; my insurance agent is.”
Then you probably don’t trust your insurance agent because he or she is a salesperson in your eyes instead of an expert whose advice is valued. That’s probably not your fault.
The goal of my agency is to educate you and then ultimately, work for you.
If you will let us, my staff and I will help you discover what your insurance needs are and how to efficiently protect them. Click here to find out how.
I am an insurance nerd, so if you like to dig into the “how’s and why’s” of this business, I can go there too.
But even then, I may not be able to work for you for any number of reasons and price could be one of them. But it shouldn’t be because you see us as untrustworthy.
The information contained in this page is provided for general informational purposes only. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.