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Risky Business

Should I buy insurance directly from the insurance company

By Shelly Benisch, CIC
Posted Mar 29th 2011 3:55AM

CIS_Logo_25_percent_of_size_2.jpg  Hi Everyone, A common misconception we hear once is a while, "I'm cutting out the middleman when I buy my insurance products directly from the insurance company."  My anwer is, "Yes, you are, but it's not in your best interest."

First of all, let's address the cost.  No, you will not get a better premium by buying direct from an insurance company.  This is because the rates are set with the states in this very highly regulated commodity.

What an Agent will do for you is find every discount and advantage for you because there is a relationship between you and that Professional.  Saving you $100 off your premium costs us pennies on what we're paid, so we're happy to help you.  The insurance company does not have a personal relationship with you.

It's an agent's job to advise YOU what type of insurance you need, a company will never know enough about you and who you haul for to give an accurate accessment.  

I just had a case the other day where a client called the company direct because it was after hours, and was advised incorrectly on what coverage they needed....costing them a great deal of money until we were able to step in to correct it for her.

"Name your own price" is a catchy marketing concept, but does not apply to anyone who understands that  insurance exists to protect your assets and comply with your business contracts.

Bottom line, an agent is your advocate to keep your coverage correct and rates low.  Choose one who takes the time to know you and what you do! 

Shelly Benisch, CIC   Commercial Insurance Solutions (CIS)


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