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Auto Insurance Agent: How To Find The Right Agent For You

Updated: January 27, 2018

If you are looking for a cheap auto insurance policy, you will want to take steps to ensure you are paying less for good coverage.

One way to ensure you have a good policy is to find the right auto insurance agent.

Contrary to popular belief, it is possible to find an auto insurance agent who has your best interests at heart.

But at the same time, it is important to understand that agents need to sell insurance policies in order to make money.

You must always have a proper understanding of auto insurance and your policy if you want to save money in the long-term.

Who Are Auto Insurance Agents?

The first step to finding the right auto insurance agent is to understand what they do on a daily basis.

Having a commission-based income means insurance agents are often pushy when it comes to offering policies.

An agent who works for your local car insurance company is in charge of getting more clients for the company. The reason insurance agents often get a bad reputation is because they have to work for commission.

This means an auto insurance agent makes money when they provide a new policy to the company they are representing. They also get residual income each time the policyholder pays their premiums.

Having a commission-based income means insurance agents are often pushy when it comes to offering policies. They also have a tendency to make a policy sound better than the reality.

It is a good idea for individuals to do their own research on auto insurance policies and what they need from their car insurance. This is the only way you can make sure you are always saving money and getting good protection. It is better to rely on your own knowledge instead of blindly trusting an insurance agent.

What is the Purpose of Auto Insurance?

The second thing you must understand is auto insurance itself. How can you get the best policy for a cheap price if you do not understand car insurance?

Even the cheap car insurance policies you are offered may have very limited coverage, which does not make them as valuable as they seem.

A car insurance agency will say each of their policies is the “best.” But this is not always true. Even the cheap car insurance policies you are offered may have very limited coverage, which does not make them as valuable as they seem.

Auto insurance is designed to protect you and the other people who are driving with you on the road. This is why auto policies have liability sections to protect others, along with other parts that protect your vehicle.

Depending on whether you live in a fault or no-fault state, you will have different legal requirements for auto insurance. Fault states usually require some form of liability coverage, which means each policy you are quoted will have this minimum level of coverage.

Individuals must understand the terminology of different auto insurance parts if they are to get the best policy for the long-term.

Things to Know About Auto Insurance Policies

Words such as comprehensive, collision and liability are thrown around a lot with auto insurance. If an auto insurance agent tells you a policy is “comprehensive,” you may be forgiven for thinking it is a very thorough policy.

If you are involved in a car accident and it is deemed your fault, liability insurance will pay for the other party’s car damage and medical costs.

But this is not the case. Comprehensive is merely a part of auto insurance that protects your vehicle while it is stationary. Collision insurance is a type of auto coverage that will ensure the insurance company pays for damage to the vehicle from accidents you caused.

As mentioned earlier, liability coverage exists to protect other people. If you are involved in a car accident and it is deemed your fault, liability insurance will pay for the other party’s car damage and medical costs.

Liability coverage is often mandatory, but comprehensive and collision insurance are entirely optional. It is crucial to know this if you want to get the best policy from an auto insurance agent.

Make sure you ask the auto insurance agent whether their policy offers include all three forms of insurance, or whether the cheap quote is only for liability insurance.

Choosing the Best Auto Insurance Agent

How can you tell if you have found a worthwhile auto insurance agent? You can test them in a few interesting ways.

Comparing the different policies and their prices will allow you to decide what type of policy will work best in your situation.

When you first talk with an auto insurance agent, you can “play dumb” for a little while. Speak to them in a manner that indicates you have no knowledge about auto insurance. If the agent responds by telling you factual and helpful information, you will know they are a good agent.

In contrast, an agent who attempts to pull the wool over your eyes with incorrect details is someone you cannot trust. The hallmark of a bad agent is that they will try and take advantage of people who are not properly informed about auto insurance.

If the agent passes your initial test, you can begin to ask them about the different type of policies they can offer. Request comparisons for policies with liability, liability + comprehensive, liability + collision and liability + collision + comprehensive insurance.

Comparing the different policies and their prices will allow you to decide what type of policy will work best in your situation.

Saving Money on Auto Insurance

If you want cheap coverage from a car insurance agency, you can take a few steps to ensure you are always paying less.

Another way to save money on auto policies is to request information about the specific discounts offered by the agent’s employer.

The first step is to shop around. Talk with different auto insurance agents and get a sense for all the possible discounts on offer. Do not agree to a deal with the first auto insurance agent you like.

Another way to save money on auto policies is to request information about the specific discounts offered by the agent’s employer. For example, many companies offer discounts to students with good grades, members of certain groups and army officers.

Also talk with the agent about the possibility of getting discounts for taking defensive driving classes, or installing safety features into your older vehicle.

If you are someone who pays their insurance premiums on time every year (or month), and you do not get into car accidents, you will always see low premium offers for significant coverage. In contrast, someone who gets into a lot of accidents is a higher risk to insure, which results in higher premium offers.