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When it comes time to start shopping around for insurance in New York, should you be working with an agent or agency, or going straight to the insurance companies?
Why Work With an Insurance Agent?
It’s because the idea of ‘cutting out the middleman is not always positive. Generally speaking, when it comes to insurance, if you go directly to the insurance companies, there is a likelihood that you aren’t getting the best deal.
You may think by going directly to the source, that you’ll be saving money, but that’s not the case, in addition, by dealing directly with the insurance company, there is a level of risk that goes along with it.
When it comes down to it, the insurance agent is pretty much your legal representative to the insurance company. The agent is licensed by your state and acts as your advocate. This means they must put your interests over their own, or the insurance company. Even though they are paid by insurance companies, they ultimately work for you.
If you want a local New York independent agency to help you find the best insurance for your car or home, NY Insurance Hub is the best choice.
Insurance Agents in The Past:
In the past, insurance companies didn’t even sell to the public, instead their products were offered to consumers through agents who needed to be professionally licensed to deal with the public’s interests. Consumers usually paid the agents nothing as the company paid the agent.
Insurance Agents in The Present:
Nowadays, the agency system is still in place in the US, and you can find your local independent agents easily. But, due to the rise of the internet, you can also go directly to insurance companies to get a quote and sign up right there online.
Here’s What an Independent Agent Can Do:
Best Prices
Agents have the ability to quickly check rates and policies from dozens, if not hundreds, of different insurance companies. Because prices vary widely, an independent agent will most likely give you a better deal than you can get yourself. They can even get you “direct writer” insurance, just like the one you’d get for yourself.
One-Stop Shop
Insurance agents provide a one-stop shop for everything you might need in terms of insurance. Usually, a broker doesn’t just sell car insurance. They also sell homeowners, renters, health and life insurance, business insurance and more. Use them to manage all your insurance in one place, and it’s no cost to you.
Make it Easy
Insurance is not a simple subject, but it’s the agent’s job to know everything and help you understand it as well. In almost all cases, the average consumer will benefit from having someone who deals with the subject and advise them on drafting a 50-page contract. If there are any hidden surprises, a licensed agent is the one who knows where they are anyhow to spot them.
Even if you have a thorough knowledge of insurance, you can stumble: the industry is regulated on a state basis, and even within each state, each type of insurance has different rules and regulations, so working with an agent can make it so much easier on you.
Get The Right Coverage
The amount of coverage you get not only varies from state to state, but also from company to company within the same state. Many companies use so-called script policies. These forms may not use industry-standard wording and may contain modified provisions that significantly affect you in some way, in some unknown way, unless you have an expert already familiar with the specifics of a particular practice.
Are There Any Cons?
What about the bad side? Well, even the bad side can be good for consumers: if an agent makes a mistake, they can be held accountable for wrongdoing; known in the industry as Errors and Omissions. Your attorney can file a lawsuit against the agent (and their malpractice insurance) to recover damages if they did not act in your best interest. That way you have a great layer of protection.
This brings us to the second problem you create when you go straight to the company. You do not have a licensed, regulated insurance agent acting for you. You now take full responsibility for your coverage decisions and any mistakes you make. So, an agent is just a good idea for your peace of mind.
NY Insurance Hub Agency
125 Wolf Rd STE 404 Albany,
NY 12205 518-783-0105
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