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How does this whole agent thing work?

By December 3, 2020Insurance

“I’d really like to go with you but you’ll have to lower my premium by $50 for the year to match the other company.” If only I had that kind of power, I’d be insuring all of New York state! Do you know how agents decide what premium to charge you? We don’t!  We talk to you about your life, what you own and what (or who) needs protection. Next, we enter your information into the computer system and the insurance companies give us a premium cost. There is no negotiation going on here, no matter how good we are or what companies we do business with. Insurance companies use a sophisticated system, or algorithm, to come up with a premium based on statistics. They will use your credit, motor vehicle report and loss history, as well as factors such as your age, sex and whether or not you own a home.

Another thing we agents like to do is ask to see what coverage you currently have. My own cousin said, “Let her figure that our herself!” The truth is that I don’t have to work very hard to figure out what you need, the computer does that as well!  The reason agents may ask to see your current coverage is to decrease the number of questions we ask. I also like to compare what’s good and what I would like to change about your current coverage. Sometimes having a comparison is easier than just explain from scratch. Again, we aren’t “copying” work, and it certainly won’t lessen the coverage we offer – and we can’t change the premium, no matter how much we’d love to!

Your independent agent is your advocate! Remember, we represent you, not the insurance company! The most we know about you and what & who you want to protect, the better job we do. I look forward to proving the power of integrity, honesty and connection to you!