Yes, it’s 2020 and every time I turn on my (soon to be outdated) cable and replace it with a streaming device, I see multiple funny ads about Auto Insurance. The ads claim to save the consumer hundreds if not thousands of dollars by going direct without a local agent.
As an agent, I speak to prospective customers that have multiple carriers and coverages. The majority of the time, direct writers’ current rates can be beaten for many reasons.
I thought I would check out the rates myself. The rates were seriously higher than my current rate.
I guess I have a great agent – which is myself (an independent agent).
How Can Using an Independent Agent Get You Cheaper Rates?
As I think about this, several thoughts come to mind.
- How can this be cheaper?
- Is the consumer losing anything?
- Is this like the big box chain stores and grocery stores where I have to check myself out and pay the same price?
I researched and have found that about 7-8% of revenue is the advertising budget for these highly advertised companies. When you call the carrier, you are placed in a call queue. While you are waiting for someone to pick up and talk to, you listen to notices of how you can go online instead of talking to a representative. These companies are paying the representative just like my local agency is. The percentage they are spending on advertising alone is very close to most agent’s entire commission.
When someone calls a local Citywide Office for an Auto insurance quote multiple results are returned by a comparative rater that includes:
- State Auto
- Farmers and Mechanics
One call does it all!!
Local Insurance Agents Ask the Right Questions and Get the Right Information
There are multiple factors that come into play such as prior losses, driving records, credit scores, multi-policy discounts, education discounts, payment method discounts, membership discounts, etc.
Since we are an advocate for our clients, we search for and make the best recommendations of carriers and coverages specifically to meet the needs of our customers. We actually have a conversation with clients about their entire insurance picture including home, business, life and more.
We usually can find enough discounts to maximize savings.
In conclusion, you should have an independent agency to be your advocate. Call a local Citywide office in Wheeling, Moundsville, Weirton, or New Martinsville to quote your insurance. No other agency in the Ohio Valley offers and delivers multiple quotes the way we do!!!
It may seem that Auto Insurance has completely turned into a commodity, but there are differences in coverages, policy forms, etc. Most people have Insurance needs that exceed that of just Auto Insurance.