Finding the right auto insurance policy is a balancing act between getting enough coverage and paying a reasonable premium. Car insurance rates are constantly fluctuating, and it can be difficult to identify the best deal available to you at any given time.
This is where independent insurance agencies come into the picture. In contrast with “captive carriers,” independent agents can monitor your policies and alert you to a more competitive rate available from another insurance company. Simply put, they can help you to save some serious cash on your car insurance!
In the information below, we’ll discuss how independent agents differ from “captive” ones, and 5 signs that it may be time to switch over to an independent agency.
What’s the Difference Between an Independent Insurance Agent and a “Captive Carrier?”
Many insurance agents are “captive carriers.” In other words, they can only sell insurance plans and products from one insurance company (e.g., GEICO, State Farm, Allstate, and so forth).
In contrast, an independent insurance agent can sell insurance products from many different companies, and has the ability to customize plans to meet the needs of each client. In addition, independent insurance agents aren’t under pressure to meet a certain quota for a company as “captive” agents are.
Sign #1: Your Rate Keeps Going Up (Beyond Normal Market Expectations)
If you’ve stayed with one insurance company for a long time, and your premium continues to go up year after year, then it may be time to start shopping around. While insurance rates do tend to gradually increase over time, your premium generally shouldn’t skyrocket over the course of 6-12 months (unless you’ve recently had a major accident).
An independent insurance agency can help you determine if the rate you’re getting is normal compared to the market, or if you’re paying a lot more than you should be paying.
Sign #2: You’re Adding a Teen Driver to Your Policy
It’s no surprise that adding a teenage driver to a policy can make the premium shoot up hundreds (if not thousands) of dollars. That being said, some insurance companies offer more affordable rates than others. Even if your current insurer has the best deal for you right now, they may not once you add your kid to the family plan.
Sign #3: You’re Unhappy with Your Current Policy or the Service You’re Getting
There’s no reason for your insurance agent to ever be negligent or rude with you. After all, you’re the one who’s paying their bills (via commission fees). If your agent isn’t living up to your expectations, or if they are just downright mean, then it’s time to work with someone who actually appreciates your business.
Sign #4: You’ve Recently Had a Major Life Change
This is always a good time to take a step back and see whether your current insurance policy is really the best one on the market. For example, if you just got married, you will probably want to combine both policies into one. Or perhaps you just bought a house, and you can now receive bundled discounts for combining your home/auto insurance policies.
Another good reason to look at switching agents is if you’ve recently moved. This may not be as big a deal if you’ve moved locally, or in-state. However, if you’ve relocated to another state, you will probably have to update your policy within 30 days (per most state laws). It’s possible that your old insurance carrier doesn’t operate in your new state; or maybe their closest office is miles away from your home. Whatever the case may be, you should take advantage of this opportunity to make sure you’re getting the best possible coverage at the lowest price.
Sign #5: You’ve Had a Clean Driving Record for At Least 3 Years
Finally, it may be a good idea to shop around for insurance 3 years after an accident or traffic violation that you were responsible for. Every auto insurance carrier weighs accidents and violations differently. What that means is your current company may continue to penalize you with high rates for up to 5 years, whereas another carrier would have already stopped penalizing you after 3 years of incident-free driving. Once again, an independent insurance agency can help you find out whether you’re getting the best possible rate on your insurance.
In summary, there are several reasons why you may want to switch to an independent insurance agency. If you decide to do so, make sure that you’re working with an experienced, reputable company like The Insurance Outlet. Reach out to us today or submit a quote request to learn more about how we can help you maximize your insurance dollars.
