Why Independent Agents and Brokers
Independent insurance agency owners have to be very careful which companies they place their policy holders with. This is not based on commission, as much as the public would like to think, but instead the company’s commitment to the market place. Companies that offer a lower rate only to attract new policy holders and then in a few months raise rate only to lose some of the policy holders. This is a marketing tactic that some high risk as well as preferred companies uses to generate revenue. No policy in force, no claims. The independent agent and brokers do not typically do business with this type of company. The reason, independent agents have staff, and families to support which can only be supported by building a book of business that renews. First one policy then two until there are enough new and renewal business to support one or two families. Typically it is 800 to 1000 policy holders. The first policy period commission (15%) is eaten up by the acquisition costs, advertising, rent, utilities. So the companies that promise to save you 15% or at least $400 are only trying to obtain the policy holders of other companies at a lower rate to only raise it later. Look the reality is consumers will not switch unless they can save money. Self prophesying! If you are in a high risk company due to tickets or accidents, stay until your record is clean. Do not miss payments! Insurance companies all belong to CLUE (Comprehensive Loss Underwriting Exchange). This organization is a data base for accidents and previous insurance. It keeps track if your policy lapses or if you change companies on a regular basis. All consumers may request a copy of their report. LexisNexis, Consumer Center, Request your personal report online (www.lexisnexis.com) Call 866-312-8076. Premium and levels of coverage are affected by this report.
A licensed independent insurance agent or broker is your best bet; he or she must take care in the company they place you with as well as be there when you need them. Not a phone bank in the Far East, or even in another state. So before you call the company on TV Google your local agent. Or call 1-88-411-AUTO (2886) americaninsurall.com