Why It May Be Time to Fire Your Insurance Agent

Matthew Banchero | Jun 16, 2020 | minute read

“You’re fired.” Those words are devastating to hear and, for many, are just as difficult to say. If the thought of having to fire someone gives you anxiety, you’re not alone. But when it comes to the insurance you’re paying hard-earned money for, you should make sure your insurance agent is delivering what you need. 

And if they aren’t, it’s time to say goodbye.

Why It's Important to Have an Excellent Insurance Agent

Your insurance agent is the first line of defense to make sure that you get the right insurance at the best price. So when it comes to your agent, you shouldn’t settle for bare-bones service. 

At a minimum, your insurance agent should find policies that suit your needs and actively negotiates prices on your behalf. And while price certainly matters, getting comprehensive coverage tailored to your situation matters even more

An excellent insurance agent will have the experience and knowledge needed to assess all areas of risk within your company and counter them with the right policy. When an agent doesn’t understand the variables of your business, it makes it difficult, if not impossible, for them to see where you’re vulnerable. 

When you go with the wrong agent who sets you up with the wrong policy, you’re left open to devastating losses. For instance, if you don’t have the right flood insurance coverage, one storm could bankrupt your business. Ultimately, your insurance agent not only saves you money upfront on your policy—he or she also sets up the framework for your company to save money when any losses do arise.

Signs that It's Time to Get a New Insurance Agent

Unfortunately, knowing the risks of working with a less-than-stellar insurance agent is different than being able to assess the one you’re working with. So how can you know if it’s time to move on? Let’s take a look at some of the tell-tale signs: 

  • They don’t sufficiently break things down so you can understand your coverage: While it’s critical that your agent understands industry jargon, they also need to be able to rephrase things to make sure that even those without an insurance background know their policies.

  • They’re hard to get in touch with: You need an agent who is responsive when you ask questions and need assistance. If they only respond after multiple attempts at contact or when it’s time for you to pay your premiums, you should seek out an agent who won’t hesitate to make you a priority.

  • They don’t seem interested in understanding your unique situation: There are numerous variables that impact coverage needs no matter the type of insurance you’re seeking. A good agent will ask questions to determine what makes your situation unique.

  • They aren’t working with you throughout the year: A quality agent offers you their services outside of your policy renewal window. There should be a focus on a cost-containment strategy that extends throughout your year of coverage. Also, expect them to check in from time to time to see if your coverage needs have changed.

  • They don’t keep an eye out for better options: When renewal time comes around each year, your agent should be able to present a few alternatives to you, and review the pros and cons of making a switch. And although your agent should always be keeping an eye out for the best option, a good agent will also know when switching to a new carrier could cause a bigger headache than it’s worth.

  • They aren’t technologically literate: Getting the best deals, staying in communication, and even ensuring compliance with the law are all easier when done online. So if your agent is stuck in analog, they aren’t properly serving you.
     
  • They give you options without guidance: Unless insurance is your field of expertise, your agent should be putting their knowledge to work for you by breaking down how each option will benefit you and where it might fall short. 

Finally, and this should go without saying, but if at any time you suspect your agent is lying to you, misrepresenting themselves, or withholding information to deceive you, it’s time to fire them and possibly report them to the governing agency in your state.

How to Fire Your Insurance Agent And Move To Greener Pastures

If you’re seeing the signs that your insurance agent is not properly serving you, now is the time to take steps to sever the relationship. Insurance is a high-stakes business, and you need to be confident that the people and policies helping you offer the protection you need. 

When doing this, it’s important to understand who your agent of record is. Your agent of record is an agent designated by you, the policyholder, to represent and manage your insurance policy; he or she will, for instance, receive all quotes, policies, and notices on your behalf. Your agent of record should be advocating on your behalf and fixing any outstanding issues. If your designated agent isn’t getting this critical job done, then you can fire your agent and move on to a new one.

Leap | Carpenter | Kemps Has the Right Insurance Agent for You

At Leap | Carpenter | Kemps Insurance Agency, we know that you deserve a knowledgeable insurance agent that’s working on your behalf—and we’ve got just the people to do it. Our experienced insurance agents have guided countless people just like you through the insurance maze. Contact us today for a free consultation.

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