When I was in the process of purchasing my house last year, I started getting homeowners insurance quote online but then someone recommended to me this insurance agent to me saying how great she was. So I called her and we talked and she did sound like a really good agent and even though her quotes came back a little bit higher than what I found the online I went with her for home and auto because I liked the idea of having an agent and she gave me this whole speech about always being on my side and being there for me.
About four months later some hit my car in a parking lot and took off. When I discovered this I called my agent thinking she would help take care of this. All she did was give me the phone number to the claims dept.
More recently we had some bad weather and it caused some damage to my roof. Again I called her and she told me to call the claims department. I spoke to the claims department and they said they would send out someone to assess my roof when no one came I called my agent to see if she could find out what’s going on and of course she told me that I need to call the claims department that she has nothing to do with her and she has no information and can’t get any information. To which I responded but you’re my “agent” aren’t you supposed to help me with stuff like this and she flat out said that’s not her job.
If all they do is sell you insurance then what’s the point of paying extra for agent? I can go online and get the exact same coverage and get the same level of service and save some money.
What is the point of paying extra for an insurance agent if all they do is sell you insurance?
byu/Mister__Magoo inInsurance
Posted by Mister__Magoo
23 Comments
You misunderstood what an agent is for and got upset about that. It’s like hiring a plumber then being upset when they tell you they can’t rewire a ceiling fan lol. Your friend never told you they would handle your claim for you either
An agent is not a claims handler.
An agent is to help you navigate the purchase process, explain coverages, and help you understand your policy *before* you use it. Lots of agents sell for multiple companies too so they can shop your policy with other carriers
Most people don’t understand their policy. That’s fine. Insurance is confusing. but that’s what agents are for
Think
“What does this loss of use coverage limit mean?”
vs
“My house burned down and I need you to pay me for a hotel”
edit: word
The main appeal of an agent, to me, would be for someone who doesn’t know what insurance to buy. My Aunt made a catastrophic mistake and didn’t carry collision/comp on her policy simply because she called and got the cheapest thing she could, and agent would have obviously caught that.
They also can be a huge help if they are independent agent who can look through tons of different companies to find you the best deal.
But the agents who JUST sell one company? Their assistance can be limited.
With that said — Any good agent would make a claim for you. They are definitely being lazy. BUT. As an adjuster, I never liked agent opened claims b/c the details were wayyyyyyyy less reliable and often the claim would get placed in the wrong place.
Do you get angry at the postman for not bringing your UPS delivery? No.
That’s similar to what’s happening here. You’re expecting an “insurance concierge” when they’re insurance salespeople. They can help with bureaucracy like adding/removing drivers to the policy, advising on limits and why (expert opinions), adding your new car, removing your sold one throughout the year and help you shop for the best price versus coverage options saving you a lot of time and reading of fine print, but they aren’t “claims people working for you” and never have been.
Claims agents are required to carry a license to process your claims and an agent that sells your policy is required to carry a different type of license. Processing a claim very tedious, requires a great deal of law terminology and so much more. Your agent can’t do that for you, call the claims department when you have a claim because they’re the ONLY ones that can help you. What makes you think you’re paying more for an agent? You can absolutely shop your policy and do the legwork yourself
I absolutely love my insurance agent. He’s my go-to person for any and almost all my insurance: hens super responsive, very helpful whenever I have questions, and helps me navigate to the policies I need. Basically, he does all the keg work and heavy lifting FOR me. Being able to outsource that is amazing to me.
By the way, you aren’t paying extra, so there’s nothing to that angle. The commissions aren’t tacked on to your policy cost.
Agent is licensed to sell you insurance not handle your claims. Agent can assist you in getting your claim set up, giving you the claims dept/adj info, or getting documents to your claims adjuster but outside of that they have no role in the claims process, coverage decisions, or settlements.
Our agency assists with claims. We explain the process, whether auto or home to our client. We take the information on the incident. We make the initial call to the insurance company so that we have a record. We explain that an adjuster will call and in most instances we are not in that loop. We advise that if they have any problems or questions, or difficulty reaching the adjuster to let us know so that we can advocate for them. I know that I am not alone in this process, many agents so this. I am independent, I know that some captives are not allowed to do this based on their company agreement. Not all, but some. In my opinion your agent should have provided some help. While I understand initially telling you to call the 800# ( I don’t agree, but I get it), when you we’re not contacted she should have call the company and prodded from her end. If we as agents do not do extra, than op is correct, they don’t need us.
Claims dept and agencies are completely different.
Agents tend to not speak on claim processes because there’s so much to it and they don’t know how it works. And same for claims dept, they wouldn’t speak on the agents job because they simply don’t know. So when she said it’s not her job, she is in fact correct it is not.
You’re also not paying extra for an agent, rates are filed with the commissioner and the state, it just so happens that the company you decided to go with has higher rates than the online one. Since you’re having issues with your claims, I’d recommend calling your adjusted manager and asking questions.
>*All she did was give me the phone number to the claims dept.*
Yup. If you’re an intelligent and literate human being, agents/brokers are mostly a scam. I see people in the comments trying to blame you for being stupid, but it’s not your fault; Agents ***intentionally*** misrepresent what their role is. They do this because they know they don’t actually add any value, so they need to make you *think* that they’re valuable. If you’re getting cheaper quotes on your own, and if you can read and understand big words, then an agent is completely redundant.
Agents *are* useful for the following:
* You don’t speak fluent English (your bilingual “agent’ is really just a glorified translator)
* You can’t get affordable insurance on the standard market, so you need an agent to get you special quotes. For example, when Progressive won’t insure you, you *need* an agent to sell you National General or Chubb insurance, because those companies do not sell directly to the public.
* You’re uneducated and can’t understand the coverage explanations written in plain English on GEICO’s website
Other than that, there’s not much reason to use an agent for insurance (especially car insurance). As a claims rep, I’ve encountered many customers who really do need an agent. They’re ignorant and they don’t understand what they’re paying for (or not paying for). I’ve also had plenty of customers who are college educated and have no problem understanding what a “*$25k Liability Limit*” is. If you fall into the latter category, then I think you should get some new quotes on your own and just ditch the agent.
^(Also, it’s 2024. We have the internet. If you’re really confused about any aspect of the insurance process, you can just Google it. I’m a licensed claims professional, and I Google answers to questions all day long.)
Sounds like you need to have a conversation about the expectations you have for your agent. Schedule a call and express those feelings & concerns, and if she’s not willing to work with you how you want, then you can request an agent change.
Allstate was the same way. We had a local ‘agent’ — but they just tell you to call the 800 number for homeowner crap…. THAT’s why, after 30+ years of using them PLUS increasing my auto insurance year after year, I switched. Saving myself $4000/yr on auto insurance. Allstate thought I’d just go along with it.
Agents are only there for the paycheck. I wont use any agent for insurance purposes. I dont use RE agents either. They are just sales people who only care about the paycheck.
Same happened to me after a minor scrape. Called my insurance agent for some help on what to do. Thought she would take the information and move it along. Been with them 12 years. She didn’t seem to even care, and seemed surprised I contacted them. I got annoyed and said arent you my agent?
This is just how it works.
They are licensed to sell you a policy. They are licensed to handle claims and are likely only telling what they can, which is to call claims.
My company won’t let us discuss claims at all, if we are aware there is damage I am completely forbidden to discuss if that existing damage will or will not be covered and must direct them to claims.
Lastly, having an agent is helpful if you have questions regarding insurance or if you want to shop multiple carriers. With all due respect, you weren’t even aware an agent and claims adjuster were two separate people.
In insurance, you don’t know what you don’t know until it’s too late.
Some agents just care about the commission and sales bonus. She gave you that spiel to get your business. She has nothing to do with claims, but at least she could do the customer service. When I was an agent, I helped clients navigate the claims process. It could help with retention and getting more business.
Ignorance abounds!!
That agent sucks sorry. They should have had a conversation with you about the implications of the accident and your coverages, how it will affect you, then connect you with the claims department. I always do a warm transfer.
For an ongoing claim, I can chat with the claims department with my customer live on the phone, get answers, review notes, and connect them with the adjuster.
If you think you can do it “better” go right ahead. I have had several insured that that approach. Did know what they didn’t know. Messed up a key date and when the claim rolled in – no coverage. Called me in tears. Why didn’t you tell me this…. I never had the opportunity b/c they found cheaper coverage. $300 savings cost them $200K in an uncovered loss.
Many agents are independent therefore issue policies with many insurers. That agent is there to explain coverage and guide you through the process and the underwriting. They recommend coverage that would be a possible coverage gap if never considered by the consumer. Online interaction with quoting software is lacking any guidance.
An insurance agent is not a claims representative. Claim handing requires a specific license that agents usually do not have. Agents are required to refer you directly to the insurer when a claim is filed and by far, this is the most efficient way to facilitate a claim. Your agent is a fiduciary therefore they work for you and not the insurer. They can advocate for you but they are not a party to the claim and often the claims representative cannot convey information.
Your agent should’ve made a phone call on your behalf but honestly, they will not be able to move the claim along any faster. Sometimes agent and adjuster relationships can be adversarial because they know agents are advocates for the policyholder.
This is a sad thread to read. As an Agent I ask all of my clients to contact me first before filing a claim. Need to have your roof inspected due to hail? I’ll recommend one of my trusted contractors to swing by and determine if you should open a claim. Got into an accident? Give me the details and I’ll file the claim for you and follow up in a couple of days to make sure the adjuster contacted you. My retention rate is over 95%.
Recently had a client ask to open a claim for water damages. Sent a legitimate contractor to inspect the damage, maybe $2K for repairs. Client has a $1K deductible plus factor in 3 years minimum of increased rates, $2K was a bargain.
An agent is for more than just shopping policies. Sadly, it seems like many in this thread have churn and burn agents.
BTW, I ALWAYS give my clients the option of having a recommended contractor come but make sure they understand it’s not required that they work with them. Pretty much all of them appreciate the fact I can get them started same day though.
You will probably get a lot of nasty comments here. This is the value of having an exclusive agent vs an independent. We can more easily represent your interests and provide you guidance and feedback on what you are experiencing. Ultimately, claims makes the decisions but we are pretty good at kicking them in the butt when needed and advocating for your interests. So, find a good exclusive agent (Allstate is who I rep) and you will see the difference.
You don’t understand the industry and that’s okay.
Your agent did the right thing. Your agent is there to help you with the many things you’ll need BEFORE needing to use your policy.
Everyone’s needs are different and complicated. The agent is there to help you understand which products are best tailored to your complex needs. They are not the claim handler, the adjuster, the repair shop, or the bank.
You will understand the value when an older relative dies and their estate becomes your problem. Or when your teenager needs to house their policy under your household. Or when your business is expanding across state lines and you are buried in the regulatory web that will come with that.
Your agent doesn’t handle claims. Your claim handler does and the assigned claim handler will navigate you through that process.
You get what you pay for and having an agent is always the best choice when your needs progress beyond the basic auto insurance needs.