In Defense of Insurance Agents and Brokers

A business man smiles as he straightens his tie. — (Image credit: Getty Images)

Car salespeople, attorneys and insurance agents all have something in common — they are not always held in the highest esteem. I know, major shock, but it’s true. Why is that the general consensus? What is it about insurance folks, at least, that makes most people wince? Is it a justified reaction, and, most important, can I change it with this article?

Although I gave you a short list of business types that most of us don’t exactly love, they and others at the bottom of the barrel have something in common. And no, I am not referring to the fact that you don’t like ’em. Each work in an industry that we turn to out of necessity. These are occupations that you may even say we are forced to interact with, like it or not. Get sued, you need to have an attorney. Need a car, time to deal with a car salesperson. And, yes, if you a house and/or a car, you will find no shortage of people looking to sell an insurance policy to you.

Let’s zoom in a bit and focus on the insurance dude or dudette. They get up in the morning, have some coffee (regular, not decaf), shower (hopefully) and are at their desk when the sun rises. Yes, that’s earlier than most workers, because some of the large insurers are in different time zones, and the early agent gets the underwriter.

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What insurance pros get to hear again and again

You have an increase in your auto insurance? Maybe you call your agent to ask what you can do about it. But guess what? Your agent has lots of clients, and if you have an increase, chances are many, if not all, of their clients do as well and are making that same call. Imagine the phone ringing, or email inbox filling up, day after day, week after week, with nothing but people saying, “Why did my premium go up?” I highly doubt anyone asks the grocer or the person scanning movie tickets why the prices have jumped. Insurance agents get to hear it. Again and again.

Maybe you’re unlucky enough to have a car accident. I know, it isn’t your fault, but either way, you’re going to reach out to your insurance contact. Safe to say you’re going to be, well, not your best self. You hit something and you’re mad, or something hit you and you’re madder. Regardless of what happened, you’ve had a loss, and you need to file a claim. In the words of Ray Parker Jr.: “Who ya gonna call?” The answer in this case is your insurance agent. You’ll get on the phone and maybe take out all the frustrations you have about your accident/theft/loss. You’ll yell, make demands, and that’s just the way it is. You’ve had a loss — you’re allowed to act this way, right? It goes with the territory of being an insurance agent.

Another scenario: You’re out to dinner with friends, having drinks, good food and some laughs. Someone breaches the topic of what they are paying for their car insurance. All of a sudden, everyone is in a frenzy. “You pay what? I pay so much more!” Or words to that effect. You want to know why you are overpaying. You’re going to contact your insurance agent. (That’s always a fun-filled interaction.) So you give your agent an earful/email-ful: “You’re overcharging me! I’ve been with you for so many years, and you’re overcharging me!”

Once you’re done venting, your insurance agent may point out that you drive a $100,000-plus car and have a speeding ticket, while your friend might drive a $50,000 car and could have a perfect driving record.

Please keep a few things in mind

Listen, I get it. I’ve been an insurance agent since before I graduated from college, and that was, well, a while ago. I’ve heard it all, seen it all, read it all. I don’t begrudge consumers from utilizing the services of an insurance agent. That’s what we are here for, so we serve our clients. I ask only that you keep a few things in mind:

Your insurance agent does not set the price you pay — the insurance company does.
Your insurance agent is a human being, just like you. Interact with them accordingly.
Your insurance agent wants to keep you happy in order to keep your business — that’s how they make a living.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Karl Susman is a veteran insurance agency principal, nationally engaged insurance expert witness and broadcast host who translates insurance from jargon to judgment. For more than three decades, he's helped consumers, courts and policymakers navigate coverage, claims and compliance. As Principal of Susman Insurance Agency, Karl works directly with households and businesses to compare options and make clear, defensible coverage decisions.