How to Rate an Insurance Agent

It happens too often when we find a personable insurance agent, that we throw all of our trust into the relationship without discerning whether or not the agent deserves that trust. In order to get the right guidance when it comes to choosing our insurance, we must scrutinize the agent trying to sell us that insurance. Read these tips below to learn how to rate your insurance agent.

Instructions

1. Pay attention to how your insurance agent describes bonuses or lump sums that are paid when policies mature. A good agent explains that the bonus is not guaranteed and it usually depends upon whether or not the company was profitable during any given year.

2. Remember that insurance agents make substantial commissions on policies they sell you. A trustworthy agent should advise you to seek the advice of an independent financial planner before purchasing any policy. Only then can you be sure your insurance agent is not motivated by greed.

3. Expect an honest insurance agent to explain how your car gets valued if it's been totaled. Insurance companies don't just fork over the total amount that you paid to buy your car. Instead, they use value books--like the Blue Book--, market research on car values in your locality and quotes from other vendors.

4. Ask your insurance agent what happens to your premium once you've made an at-fault claim. A good agent must state that his auto insurer can raise your premium by up to 40 percent.

5. Find out if and how your insurance agent reminds you when premiums are due. A good agent mails out friendly reminders or has his staff make phone calls to his clients.