Choosing insurance agent

[jnmeade]

What criteria should the average GA pilot/owner use in choosing an aviation insurance agent?
My understanding is all aviation insurance companies but AVEMCO quote only through an agent and you are bound to the agent until you "divorce" them in writing.
I was told by one prospective agent that any good agent should be able to get you about the same quote for the same coverage as any other good agent, so you are really shopping for customer service (this is about like buying crop insurance).
I was told by an aviation executive that agents can indeed get different quotes by knowing which company to approach and how to present your case.
I was told that some companies have regional underwriters so you may bet a better AIG quote from Smith in Texas than you get from Jones in Maine.
I was told by a prospective agent that you want an agent who doesn't assume he "knows" the industry but will approach every company because company quotes change often. They will add or drop coverages or change quote rates to focus their exposure and this may happen on short notice.
I was told that if you really know the industry there is no need to go beating around the bush - check with the several best in a certain coverage field and go with them.
I am interested in knowing how to go about finding an agent who will represent me well, give me good value for the coverage I desire. Educate me.

 

[Lawreston]

Who is this "Jones" person in Maine? In lieu of reaching the "Jones" rep. I've noticed that
Travers has been my best source in price and customer service as per guidance.
A couple owners in this area have been with that firm for over 20 years and have never found a reason to change.

HR

 

[poadeleted20]

First, the term "agent" refers to a person who is an agent of the insurance company, and sells only the policies of insurers for which that person is an agent (sometimes only one, sometimes more than one). The term you may be looking for is "broker," who is an independent service provider who works for clients like us. Brokers shop the various insurance companies on behalf of their client in order to obtain a choice of options unrestricted by the limitations inherent in being an agent. You pay the same price for the policy either way, but the broker can identify more options, and provide more independent advice than a agent who is an employee of the insurance company. Most important, the agent gets paid only for selling you the company's policy, while the broker is paid regardless of what policy you choose, and only keeps getting paid if you keep coming back to that broker.

As for the "one quote" issue, there is an industry agreement that insurance companies will not provide more than one quote for the same policy application. This prevents folks from trying to get better deals by shopping through multiple brokers for the same policy from the same company. From the company's standpoint, it reduces overhead by eliminating the need for them to work up the same quote several times for the same end-customer. Once you get one broker to work up quotes, you can't get another broker or contact the insurer yourself to get another without obtaining a release from the first broker.

If you want a good broker, one who has served me well for almost 15 years, I recommend Norris Hibbler at Aircraft & Marine (http://www.aircraftandmarine.com/)

 

[RickH]

I bought mine through Falcon via the EAA. Got a 5% discount for being an EAA member and another 5% for AOPA. It more than pays the annual dues for both.

 

[wabower]

In practice, the difference between independent agents and brokers is one of semantics. If you check their websites, you'll often see the terms used interchangeably on the same site. Some of them just think it sounds better if they use the fancy word.

In order to represent a carrier, a broker will typically have agency contracts with multiple companies, although not necessarily all of the companies. The same is true of most independent agents.

There are circumstances under which certain agents and/or brokers can get better rates and/or better coverages than others. In theory they shouldn't be able to do it, but when one guy can do it over and over and the other guys can't, it becomes pretty clear that some are better than others.

When a carrier screws up, it can be costly for the insured. A few years ago we insured a Citation II for a newly type-rated owner-pilot on very favorable terms by using an agent in TN who was quite skilled at "working the market." The owner's former agent couldn't provide the same coverage at the same price, so the owner elected to take the best deal he was offered. The policy was issued, the premium was paid and the owner was flying the plane when the owner's former agent got wind of the deal and raised hell with the carrier because he had not been provided with the same quote as the agent that got the business. The insurance company contacted the agent who wrote the business and said they would cancel the policy unless the owner paid the higher premium that had been quoted to the original agent.

It got ugly before it was over, and I exchanged a number of letters with various state insurance commissioners and their minions. Bottom line was that the owner cancelled the contract and secured a policy with another carrier through the TN agency.

In the aviation industry the term "brokered business" is often used to describe a situation where the airplane owner contacts his primary insurance agent (perhaps an Allstate or State Farm agent) who oversees the owner's insurance portfolio but is not an agent of any aviation insurance carriers. The agent will refer the business to an aviation-specialist agency that has contracts with aviation companies, and will typically receive a portion of the commission.

First, the term "agent" refers to a person who is an agent of the insurance company, and sells only the policies of insurers for which that person is an agent (sometimes only one, sometimes more than one). The term you may be looking for is "broker," who is an independent service provider who works for clients like us. Brokers shop the various insurance companies on behalf of their client in order to obtain a choice of options unrestricted by the limitations inherent in being an agent. You pay the same price for the policy either way, but the broker can identify more options, and provide more independent advice than a agent who is an employee of the insurance company. Most important, the agent gets paid only for selling you the company's policy, while the broker is paid regardless of what policy you choose, and only keeps getting paid if you keep coming back to that broker.

As for the "one quote" issue, there is an industry agreement that insurance companies will not provide more than one quote for the same policy application. This prevents folks from trying to get better deals by shopping through multiple brokers for the same policy from the same company. From the company's standpoint, it reduces overhead by eliminating the need for them to work up the same quote several times for the same end-customer. Once you get one broker to work up quotes, you can't get another broker or contact the insurer yourself to get another without obtaining a release from the first broker.

If you want a good broker, one who has served me well for almost 15 years, I recommend Norris Hibbler at Aircraft & Marine (http://www.aircraftandmarine.com/)