Well, in most cases you do not have to use an agent if you don’t want to. But the question you should be asking is “Why would I want to use an insurance agent?
Let’s take a minute to look at how the Insurance sales process works.
The first thing to understand is that although people use the terms interchangeably, there is a difference between agents and brokers. Agents typically represent one insurance company, and brokers are independent and can work with several insurance companies. Both agents and brokers can explain the subtle differences in insurance policies that might bring you greater value.
With Insurance the concept is simple, but the contracting can be very complex, and small differences in language can make a big difference when you have a claim. Insurance agents or brokers are supposed to explain the different policies and advise you on what you may, or may not, need.
For example, I was looking at my business owner’s policy for my office and I was curious if I had what I really needed. I contacted my current broker and I also spoke to another agent I know. In both cases they said based on how my office works I had the best policy already and should keep it.
But here is the real value of a good agent. One of them asked questions and pointed out some changes I could make to our computer systems management and office procedures that would reduce my need for one of the coverages. That would reduce my costs, and still provide the coverage I need.
In the end you do not have to use an agent and there is more and more insurance being offered “online” without an agent being involved. But consider this! Insurance of any kind is just words on paper until you have a claim. When you have a claim, it is now about being able to replace your car, being paid while you are disabled, or your child being cared for in a hospital, or not!
And that is when you no longer care how cheap your insurance was and you may desperately wish you had an independent agent to call for advice.