Shopping Your Insurance: Is It Worth It?

Let’s discuss a burning question in the realm of insurance: “Is shopping your insurance really worth it?” In a world where technology and commoditization run our day-to-day lives, we rarely discuss the more important aspects.  Benefits, relationships, and added values are real differences that can make or break our policies. Insurance is a highly complex financial contract that should not be purchased the same way you would an item on Amazon. I know you are thinking, “But it’s fast and cheap, and insurance is just an expense.” However, with the right agent, your expense can turn into an investment. Let’s answer some seemingly simple but important questions that every client should ask their prospective agent when shopping their insurance. 

As a client, the first question you will want to ask is introspective. Before googling the top agent in the area (or the at least the one that pays the most for a greater SEO boost) ask yourself, “Why am I leaving my current agent and what do I expect of my new agent?” Clients often have valid reasons for leaving their agent. If you never consider your “why”, more often than not, you will end up in the same cycle with your new agent. Here are four reasons to shop your current agent and a guide for you to follow when searching for an agent to fit your needs.

1. Price: Most often, clients shop their insurance due to an increase in price. Make sure your agent has a plan to consistently keep you at a great rate. Agents who are locked into a single system, captive agents, serve the company more than the customer.  Independent agents who commit to servicing you are the key to maintaining a great price.
2. Coverage: A second reason clients shop their insurance is a lack of confidence in their coverage. This happens when agents are more interested in selling a price rather than educating the client on a product. Make sure as your shop your insurance, your agent explains to you how and why they are covering your assets properly and how they will adapt this level of coverage to always fit you as your life changes. 
3. Added Value: Unfortunately, insurance commoditization has made insurance products all about the price to many clients. The next time you decide to find a new agent, make sure they are adding value to you beyond the premium you are paying. If you are wondering what type of added value, here are a few examples to be looking for: Technology (mobile apps are awesome), Client Plans & Reviews (to build a relationship, keep your pricing competitive, and coverages sound), and innovation (if your agent isn’t improving, they don’t care).
4. Others: Finally, many clients shop policies when they are not being heard as clients. Servicing and back-end office staff should also help deepen the relationship with you and your agency.  Relationship is key and being serviced locally is always better! 

Shopping your insurance sparks innovation and competition within agents, which is what you, the client, deserve. You want competitive rates with competitive coverages. You want innovative ways to add value to your policies. If you find an agent during the shopping process who is self-motivated, innovative, and highly knowledgeable, then you have found an agent to build a relationship for years to come. So yes, shopping your insurance is worth the time and effort it takes to have great products at great prices. But something even better than shopping your insurance and finding a better price is finding a motivated insurance agent who will always serve as your advisor so that you never have to shop for insurance again!