Insurance agents may think they know everything about insurance and are prepared to answer any question that comes their way, but they need to start thinking like consumers when it comes purchasing insurance. Consumers need to know the extent of their coverage and what they can or cannot live without. For insurance agents being able to answer the questions of consumers will prove to be more significant than stating a bunch of insurance jargon that is difficult to understand.
A consumer wants to feel that their insurance agent is looking out for their best interest. In this case, it is appropriate for an insurance agent to explain different insurance options as well as alternative ways of being ‘covered’ without purchasing insurance.
Coverage gaps are areas of an insurance policy that are not covered in a contract. Insurance agents need to take responsibility in telling consumers what they will not be covered for in regards to specific circumstances.
A car insurance agent should indicate how much liability insurance is available on a policy. For instance, if someone gets in a car accident and must pay for another person’s medical expenses, property damage and lost wages, the liability may only over a fraction of the cost.
Insurance agents should explain the importance of purchasing comprehensive insurance. Depending on the type of insurance, homeowners would find value in being covered in case of a fire, but on the other hand car owners might find it irrelevant.
In the case of an older car, an insurance agent will explain that collision may not be necessary because the coverage is often limited to the value of the car.
It is important to have a good driving, but insurance agents will let consumers know that insuring more than one car and/or house will save money as well as a good GPA for student drivers.
As an example, consumers forget to purchase disability insurance. Disability insurance will cover expenses for someone that is injured and not able to work, which is important to think about if a consumer is not covered by their employer.
Depending on the financial practices of the consumer, the insurance agent should discuss the cost of living and saving habits of consumer in order to make the right decision.
It varies, but insurance agents need to express that a policy can only be reviewed once a year if that is the case.
Every consumer wants to feel like they are in good hands, which is why having a full-time insurance agent is important to most consumers. They want to be able to call and ask questions or ensure they can file a claim at any time.
Published: Wednesday 11th March 2009
