Payton Agency Blog
You may think “Hey, I can just buy direct and cut out "the middleman" They just mark up the product's price and sell it to me anyway!”
Well that may be true in the case of buying goods from a wholesaler versus a retailer, but is buying directly from the insurance company truly saving you money?
Currently there are plenty of "direct writer" insurance companies out there. These companies "cut out the middle-man" by selling directly to you, rather than through an agent. However, while you may think you are saving money by going direct, that typically isn't the case. Additionally, by dealing directly with an insurance company, a consumer takes on a level of risk that they may not realize even exists.
‘Back in the day’, insurance companies used to not sell to the public. Instead, their products were offered to consumers by "agents" who had to be professionally licensed to deal directly with the public. Regularly agents came to your house to quote your insurance needs. Consumers paid the agent nothing because it was the insurance company who paid the agent a commission, and this commission was not added to the retail price.
Now, the agents are still in place throughout the U.S. You can find dozens if not hundreds of local agents in your telephone book or online. However, thanks to advancing technology, going straight to the insurance company for a quote can be easily accessible. If you like the quote, you can even sometime buy a policy right online.
Do all your needs get met?
Do you have the correct coverage?
Do you know enough to understand what you just bought?
Do all your questions get answered?
What happens when you need to use your insurance?
What happens when a call center representative doesn’t have an answer or understand your need, or you don’t like the answer you are given?
Where can you turn?...
The insurance agent is your representative - your agent - to the insurance company. The agent is licensed by your state and carries with them the fiduciary responsibility to be your advocate. They must put your interests first over and above their own, or the insurance company. And the agent is STILL paid by the insurance company not you* Even though the agent is paid by the insurance company, they work for you.
*some brokers charge fees for consultations and servicing , the Payton Agency DOES NOT!