Insurance agent: what to know

What the job involves, what changes the price, and what to ask a pro.

What insurance agent is

An agent explains coverage options, compares policies, helps you apply and assists with changes or claims questions for auto, home, life, health or business insurance. People look for one when buying a policy, moving, changing life stage or reviewing coverage. This is general information, not insurance, legal or financial advice.

Signs you need it

  • You bought a home, vehicle or business and need coverage
  • A policy renewal arrived and you do not understand the changes
  • You had a major life event such as marriage, a baby or retirement
  • You want your policies reviewed for gaps or overlap
  • You need coverage the company that insures you will not offer
  • You have a claim question and want someone to explain the process

What the pro does

  • Ask about your property, family, income, risks and what you want covered
  • Explain the types of coverage, limits, deductibles and exclusions in plain words
  • Request quotes from the insurers the agent works with
  • Compare policies side by side, including what is not covered
  • Help complete the application and explain what you are signing
  • Assist with changes, renewals and questions when a claim arises

What changes the price

Every job is different, so we do not publish prices. These are the things that move the quote up or down.

  • The type of insurance and amount of coverage
  • Your location and the property or vehicle insured
  • Claims history and, for some lines, credit or health information where allowed
  • Deductible and limit choices
  • Number of policies bundled with one insurer
  • Whether the agent represents one insurer or several
  • Specialty coverage, such as for a business or high value items

What a written quote should spell out

  • Coverage types and limits
  • Deductibles and any waiting periods
  • Exclusions and conditions
  • Insurer name and its rating information the agent can share
  • The policy term and how renewals work

Questions to ask before you hire

  • Do you represent one insurer or several?
  • Are you licensed in my state for this type of insurance?
  • How are you paid, and does that vary with the policy?
  • What is not covered under this policy?
  • How would a claim work, and will you help me with it?
  • Do I have gaps if I only buy what you suggest?
  • Can you explain this policy in writing before I sign?

Red flags

  • An agent who pushes a policy without asking about your needs
  • Pressure to cancel a policy before the new one is in force
  • An agent who will not explain exclusions
  • Asking you to sign blank forms
  • Unlicensed sellers or those who cannot show a license number

What you can do yourself

You can gather your current policy declarations, list what you own, and write down questions about gaps. Many insurers sell directly, but an agent can compare. Keep your old policy until the new one is confirmed in writing, and read exclusions before you sign.

Licenses and permits

Insurance agents are licensed by the state for each line they sell. Ask for the agent's license and check it with the state insurance department or licensing agency.

Insurance agent questions

Does an agent cost me extra?

Agents are generally paid by insurers, though arrangements vary. Ask how yours is paid.

Can an agent promise a claim will be paid?

No. The insurer decides under the policy terms.

Should I cancel my old policy right away?

Not until the new policy is confirmed in writing.

Pro reviewers

Pros who offer insurance agent remotely can improve this guide, like Wikipedia. We check every edit before it goes live. Every approved edit is credited in the edit history and on the pro's profile.

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