In Defense of Insurance Agents and Brokers
People who sell insurance are often not consumers' favorite people. Here are some reasons why you might want to give insurance agents a break.
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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
Related Content
- Your Insurance Rates Keep Rising: Why? What Can You Do?
- Are You Tempted to Drop Your Homeowners Insurance?
- Car Insurance Rates Could Jump Over 50% in Some States This Year
- Four Common Misconceptions About Life Insurance
- What Impact Does Politics Have on Insurance?
-
How to Avoid the Financial Quicksand of Early Retirement LossesSequence of returns — experiencing losses early on — can quickly deplete your savings, highlighting the need for strategies that prioritize income stability.
-
How an Elder Law Attorney Can Help Protect Your Aging ParentsIf you are worried about older family members or friends whose financial judgment is raising red flags, help is out there — from an elder law attorney.
-
Q4 Post-Mortem From an Investment Adviser: Year of ResilienceFinancial pro Prem Patel shares his take on how markets performed in the fourth quarter of 2025, with an eye toward what investors should keep in mind for 2026.
-
This Is How Early Retirement Losses Can Dump You Into Financial Quicksand (Plus, Tips to Stay on Solid Ground)
Sequence of returns — experiencing losses early on — can quickly deplete your savings, highlighting the need for strategies that prioritize income stability.
-
How an Elder Law Attorney Can Help Protect Your Aging Parents From Financial Mistakes
If you are worried about older family members or friends whose financial judgment is raising red flags, help is out there — from an elder law attorney.
-
Q4 2025 Post-Mortem From an Investment Adviser: A Year of Resilience as Gold Shines and the U.S. Dollar Dives
Financial pro Prem Patel shares his take on how markets performed in the fourth quarter of 2025, with an eye toward what investors should keep in mind for 2026.
-
'Donroe Doctrine' Pumps Dow 594 Points: Stock Market TodayThe S&P 500 rallied but failed to turn the "Santa Claus Rally" indicator positive for 2026.
-
Is Your Emergency Fund Running Low? Here's How to Bulk It Back UpIf you're struggling right now, you're not alone. Here's how you can identify financial issues, implement a budget and prioritize rebuilding your emergency fund.
-
An Expert Guide to How All-Assets Planning Offers a Better RetirementAn "all-asset" strategy would integrate housing wealth and annuities with traditional investments to generate more income and liquid savings for retirees.
-
7 Tax Blunders to Avoid in Your First Year of Retirement, From a Seasoned Financial PlannerA business-as-usual approach to taxes in the first year of retirement can lead to silly trip-ups that erode your nest egg. Here are seven common goofs to avoid.
-
How to Plan for Social Security in 2026's Changing Landscape, From a Financial ProfessionalNot understanding how the upcoming changes in 2026 might affect you could put your financial security in retirement at risk. This is what you need to know.
