You probably don’t associate Mick Jagger singing “Time Is on My Side” with the insurance industry. But the words “You’ll come running back, you’ll come running back, you’ll come running back to me” definitely bring to mind the ever-increasing numbers of former direct buyers who are now “back knocking” on the doors of tried-and-true independent insurance agencies. In fact, a 2013 study showed that more than 60 percent of previous direct buyers were already headed back into the comforting arms of independent agencies. Here’s what many of them have to say about why.
Auto, renters, homeowners, health and life, business, disability, long-term care – If it’s insurance, they have it. All in one place. They can also check and compare rates and coverages with lots of different companies, including “direct writers,” to find the best deal for a client’s specific needs.
While online aggregators can also show you lots of insurance with direct buy options, you’re on your own when it comes to researching, matching options to your situation, and reading out fine print to make sure you’re comparing “apples to apples” before making a choice.
Insurance companies typically offer lower rates to agents for a simple reason: Policies written by professionals who recommend the right product and coverage for the customer translate to less risk for the insurer.
It may be hard to believe, but direct pricing isn’t necessarily cheaper just because it “cuts out the middle man.”
In fact, licensed, regulated agents carry their own Errors and Omissions insurance policies, much as a doctor carries malpractice insurance.
With a direct provider, there is no licensed agent acting on your behalf. You are the one who is accountable for all coverage decisions.
They’re partners, advocates, educators, and counselors who can help clients navigate the murky, ever-changing waters of insurance and coverage. They typically strive to maintain lasting relationships with clients and usually have strong community ties. When you have a question or issue, you probably know exactly where to find them.
Many former direct buyers report that even if they had quick, helpful email or phone responses while completing a “direct buy” policy purchase, the level of accessibility and helpfulness diminished after the initial transaction, especially if they had questions or situations that were out of the ordinary. Remember that the people staffing call centers may have little to no insurance knowledge.
As more and more direct buyers realize that they aren’t saving the time, effort, or money that they thought they had hoped, they’re heading back to the independent agents who are always there for them. Just like Mick said they would. Baby.