Reader’s Question:
What is the nature of the job of an auto insurance agent? I mean what do the agents do?
Samantha
Pittsburgh PA
Certain details must be known first before buying a policy from an automobile insurance agent. Insurance agents must pass licensing examinations given by the Insurance Department, which necessitates knowledge about insurance rules, policies and practices. The difference between an agent from a broker is that an agent represents one or more insurers for the solitary purpose of writing policies, while brokers represents consumers to help them in obtaining coverage from one of the companies which that broker has a contractual relationship. Any of these “producers” (term called for both agents and brokers in the insurance industry) can provide you information about the different policies available and how to protect yourself. The best way being is to be involved. You can not relay all details and hand over problem-solving situations to your automobile insurer at all times. You have to get involved especially in the event of settling claims wherein, they were commissioned to assist you in making the right choices.
In the event that your insurance agent will decline your request, you have to clarify and know the reasons behind such decision. If coverage can be secured, make sure you determine whether it is on a voluntary or residual market basis, understand which automobile insurance agent is providing the policy and request a detailed breakdown of the policy’s different coverages, deductible and premium components. Your agent or broker must provide a summary or itemization of any quote.
Both agents (e.g. automobile insurance agents) and brokers receive a commission from the insurer. The latter are not permitted to charge for any fee of services without providing you a written memo, signed by the insured/applicant, which specifies or clearly describes the amount of compensation. The said memo must also provide specific services.
It is advisable to insurers to shop around and select a qualified automobile insurance agent that they can find. Sometimes, the best way to find a qualified agent is through satisfied friends, family members, or neighbor.
