How much do I owe you?
Over the years we have seen and heard a lot of different things. One of those is how much does it cost to use you or how much do I owe you?
Even though we are an independent insurance agent that does not “work” for the insurance companies directly. We are contracted by them and our cost, fee, or commission is paid by the insurance company directly.
There is no additional cost associated with your insurance premiums to pay us.
You can get the benefit of having an independent agent work for you at no extra cost to you.
Agency fee Policies
Now in some cases, depending on the type of insurance, the insurance company or broker may not pay us. In these circumstances, we would have to charge an additional fee for our service.
These are usually in unique situations for specific business insurance policies not for anything regarding your personal insurance like your auto or home insurance.
Why do the insurance company’s use independent insurance agents?
The independent insurance agency marketplace makes up about 40% of all insurance buying consumers. There is a trend happening now that will potentially increase that even more as more captive insurance carriers are starting to allow agents to become independent. (Nationwide)
The question is, why would an insurance company pay a fee verse selling or servicing the policy itself.
Most insurance companies have toyed with the idea of trying to sell and service policies directly. Some are successful but most of them are not.
The insurance industry is still a relationship business. Having an agent or agency that you can turn to when you have a claim, need advice, or to set you up with the proper insurance protection is still a huge need for consumers.
Consumers that want to try and do it themselves are the same ones that sell their home without a realtor, try and do their taxes without a CPA, or form their own business without an attorney.
I am not saying it can’t be done, but I am saying that you see more problems, coverage gaps, overpaying for premiums, and no 3rd party service in the event there is a claim issue.
If you don’t have a relationship with an independent insurance agent or want a review of your insurance then click the button below to schedule a review with one of our trusted insurance advisors.