Insurance is a personal matter and finding the right insurance agent is an important decision. Licensed insurance agents are trained to help you analyze your insurance needs and make coverage recommendations based on your personal or financial situation.

With so many TV commercials, newspaper and radio ads and unsolicited mailings to your home, how do you decide which insurance agent will best serve your needs? Here are a few ways to make sure the agent you choose fits the bill.

Captive Agent or Independent Agent?

Captive agents represent one insurance company and can only provide you price quotes and financial services from their one contracted company. They cannot “shop around” your insurance coverages with other companies. Examples of captive agents are State Farm agents, Farm Bureau agents and most Allstate agents.

Independent agents are appointed with multiple insurance companies and can quote your coverage with many different companies. They are not obligated to place your coverage with any particular company, and the choice is up to you.

When it comes to saving money on your insurance, captive agents are not necessarily better than independent agents and vice versa. Some consumers prefer to have their insurance coverage with a “name brand” such as State Farm. Other consumers buy based on price alone and have no preference of insurance company. The only way to know which is cheaper is to get comparison insurance quotes from many companies and compare apples-to-apples quotes.

Professional Designations for Insurance Agents

Insurance agents can take specialized training to obtain additional credentials and designations which can improve their expertice in specific insurance areas. Here are a few of the most popular designations that you can look for in your next insurance agent.

• CIC – Certified Insurance Counselor – The CIC designation is a five 20-hour course training session designed to give agents practical training on a wide range of personal and commercial risk management.
• ARM – Associate in Risk Management – The Associate in Risk Management (ARM) designation signifies that an agent has completed a thorough understanding of the risk management process.
• CLU – Chartered Life Underwriter – The Chartered Life Underwriter (CLU) program provides specialized training for life insurance agents
• CPCU – Chartered Property Casualty Underwriter – The Chartered Property Casualty Underwriter (CPCU) designation demonstrates a property/casualty insurance agent has gained a broader understanding of commercial or personal risk management insurance.

There are many other designations your insurance agent can earn through additional education, but if your prospective agent has any of the above letters behind their name, they are serious about their profession and have a higher knowledge of specialized coverages.

Do I even need an agent? Can’t I just buy insurance online?

No you don’t and yes you can! car insurance is particularly easy to buy online, and more and more homeowner’s coverage is being offered as well. For many consumers, buying online is a good option as long as their personal situation does not have any unusual circumstances that my trigger a coverage gap. Problems may arise if you have children away at school, drive a company car, have any rental property, have a home business or have relatives living with you. These can all pose unique insurance coverage issues that may be best addressed by an insurance agent.

Should I work with a local insurance agent?

Where you agent is physically located is a matter of personal choice. If you want to be able to drive to your agent’s office and talk face-to-face, then you will obviously want to choose an agent close to you. If you are comfortable discussing coverages over the phone and signing documents via mail, then you can work with any insurance agent who is licensed to sell insurance in your state. The physical location of the agent is a non-issue.

Where ever your agent is located, you will want to make sure you can contact them in case of a claim. Make sure they have a toll free claim number to either their office or your insurance company.

Where can I find information about an insurance agent?

Each state is responsible for licensing insurance agents, and you can contact your state’s insurance department from our insurance by state page. Most states maintain a database of insurance agent sanctions so you can find out if your agent has been disciplined by your state insurance department.

One of the best sources of insurance agent information is your neighbors, friends and family. Ask around to see if you can get a recommendation for an agent. The best and worst advertising comes from word of mouth.

If you can find an agent with a good reputation and longevity in your community, has obtained advanced professional training in their field, provides top-notch customer service, is reponsive to his clients and writes for financially sound insurance companies then you may have found a good prospective insurance agent.