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A local insurance agent, or large national company?

It isn't all about the premium on your insurance policy.

The battle between local insurance agents and an out of town (1-800 style) insurance company (most of who have a presence online) is heating up. Local insurance agents are able to provide personal service and rely on client referrals for much of their insurance business. The large 'out of town' type of insurance companies rely on large advertising campaigns to spread the word.

Local insurance agents can offer some things that a large, out of town, company can not. Personal, face-to-face service. A local insurance agent will probably have a better grasp on local insurance laws and other factors, such as the zip code where you live, that can have an impact on your insurance rates.

Out of town insurance companies offer a phone and/or online process for new applications and customer service and pledge to save you money because they cut out the local insurance agent.

Benefits of working with a local agent

• Consistency of service - You know what you are going to get from your agent. With a good working relationship, you can feel confident that your agent is on your side.
• Ability to meet face to face - Sometimes, there is no substitute for sitting down with your agent during a situation that needs his or her attention.

Drawbacks to working with a local insurance agent

• Not always available to you - Your agent needs a vacation once in a while. If they are not available during your time of need, you will be dealing with a subordinate.

Benefits to an out of town (1-800 style) insurance company

• Usually available 24 hours a day, 7 days a week.
• Usually a fast response to your needs.

Drawbacks to an out of town (1-800 style) insurance company

• Impersonal - No one on one relationship.
• Inconsistency of service - You might get a different service rep each time you call.
• No ability to sit down with your agent.

We recommend you get three quotes from different insurance companies before you purchase. It is probably a good idea to quote a combination of local agents and large carriers national carriers. Find the company that fits your needs.

The companies you comparison-shop should be well rated by Standard and Poor's, AM Best, and/or Weiss Ratings.