I have been a licensed Property and Casualty insurance agent for 6 months now and have partnered with Welch Financial Planning for over 5 months. It has been a great experience and I am grateful that I pursued this new career path. It excites me to talk about personal finances, providing a service that gets people closer to their financial goals, and helping people utilize insurance as a part of their financial toolkit.
In my time as an agent I have learned two things about the insurance industry that I feel are important to share. First, what I’ve seen when running quotes for clients is that every insurance companies algorithm is different. If the algorithm thinks you’re an ideal client for a specific insurance provider they will offer you a lower price as an incentive to switch to them. Second, most of the large insurance companies have similar customer reviews and satisfaction ratings, so you should shop around every 3 to 5 years and change providers when there is an opportunity to do so.
My objective as an insurance agent is to make sure you have the right amount of insurance for your financial situation and not just offer low ball quotes to make a sale. By looking at the values of your properties and talking through your financial situation I can provide guidance on how much coverage you should have to allow you to make the best decision for your risk tolerance.
In my 5 months as an insurance agent I have already helped clients reduce their insurance costs, increase their insurance coverage, or some clients were able to do both at the same time. Here are examples of client engagements that highlight how I approach insurance-
- I have already had several conversations with clients that had inadequate liability coverage. People generally start out with $300k in coverage, which is fine when you are younger, but as your assets grow, so should your liability coverage to help protect those assets from being taken in a lawsuit.
- Working with a potential client I highlighted several areas where I was concerned their coverage was not adequate. They called me a few months later saying thank you for the advice and that they had contacted their current insurance provider to update their coverage with the suggestions I made. For a few hundred dollars more a year they are now much better protected for their risk exposure. Even though this prospect did not become a client due to not being able to offer a competitive price, I was able to recognize these lapses and make recommendations only a few months into my new career when the clients current agency hadn’t reached out in years.
- A new client took the time to send me feedback on why they made the decision to move their insurance to me. The main reason was due to the fact that I was able to simplify the quoting process. I do my best to get as much information as I can on my own and then verify that information with the client. That way we can focus the conversation on the coverage the client needs and is comfortable with and not spending time going through all the details needed for an accurate quote.
- Most recently I had sent a quote to a potential client that was similar coverage with a lower price. The client called their current insurance provider to see if they could lower their costs to get closer to the price I was able to offer. The insurance agent suggested lowering their liability limits from $500k to $300k. With the client having assets worth more than $500k my advice to the client was to not risk having your assets be exposed over a few hundred dollars a year in cost.
Your coverage amount should not be based on defaults or state minimums. While going through my property and casualty insurance training I purchased a new vehicle. When I called my insurance company to add the new vehicle to my policy they stated, ‘the default coverage is $250k/$500k/$250k, is that okay with you?’. I vowed at that point to never say that to a client and to make sure there is justification for the coverage amount.
The way I approach insurance is to use it as a tool to help protect your family’s assets and financial future. If you have questions on whether your coverage is the right fit for you, I am happy to review your policies and provide guidance. The best thing to do is to reach out now as no one can predict when an accident may occur.
To your financial success,