re: What’s the point of a State Farm “Insurance Agent”?

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What’s the point of a State Farm “Insurance Agent”?

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They're salesmen. It's that simple.

I've done every insurance claim via a corporate 800 number or online over the past 25 years. No need to speak with a local agent at all after you've signed up.

Insurance has changed a lot over the years. Agents might make 10% plus or minus off your policy premiums. So it’s a pure numbers game in order to create a book of business the churns any amount of profit back to them once they pay employees, overhead etc.

I had the same complaint until I learned the business I never heard from my agent and never got proactive advice from them. Then I learned that if they took the time to sit down with every single client like that they’d never make a dime.

That business sadly has become all churn and burn. Especially once the internet came along.

I worked for State Farm agents for a couple years before opening up my own independent shop in Gulf Shores five years ago. Some State Farm agents are good, young, eager, and professional. Most agents are just sitting on their books, hoping not to die, as they can't sell them.

My personal experience as an agent: In the past 7 months, our agency has filed 750 claims, which is likely more claims than most agents entire careers. We hired an in-house claim specialist, and have a file for every single claim. We never ask anyone to dial an 800 number to file, like the majority of other local agencies. We expedite the claims as much as possible, send out a comprehensive list of contractors, and send in all docs/estimates to the adjusters. Claims is literally all I've done for 7 months, and its exhausting, but its paying off. Our agency's business is up nearly 300% YTD, and several people are simply moving their policies to our agency. Our retention rate is 98%, at a time when people are generally pissed at insurance companies.

Insurance is a contract, and I sincerely believe a good agent makes all the difference in the world.

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I’m probably the most difficult guy in Lake Charles to deal with insurance wise because I ask so many questions.

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Lost all 6 lines of my business that day. It’s like $763/mo. Apparently not very important.

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Maybe his client base is so strong that your business, combined with the attention you require, isn’t worth that much of his time?

Sounds like he helped you find another agent without having to actually fire you first.

So which is it ? Is insurance a commodity as people like to say, or is it something that requires a competent agent who can give you an hour of his time when you need it? And are you willing to pay a bit more to have an excellent agent/ agency? Most people are not.

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So which is it ? Is insurance a commodity as people like to say, or is it something that requires a competent agent who can give you an hour of his time when you need it? And are you willing to pay a bit more to have an excellent agent/ agency? Most people are not.

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My rates are probably already amongst the highest just by virtue of being with State Farm.

If you want to get right in to it, yes, they should at the initial policy set up to advise what is the correct limits and coverage for your situation.

This is how people in Lake Charles got absolutely screwed because the ignorant ones didn’t know to ask questions and their Agents failed to interact with them. They just “trust” they got enough insurance. It happened to my family with Farm Bureau.

Instead, you still have to ask 1000 questions about coverages, exclusions, gaps, etc because the Agent has failed his duty and believes he can rub his nuts to more affluent corporate accounts.

That’s the truth of it. They aren’t serving their basic customer needs. I promise you those affluent corp accounts are likely a much smaller part of their business than residential.

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Apparently he doesn’t need the business. That’s fine by me but that still strikes me as terrible. Especially if you’re supposed to be running it like “it’s your own business”.

I’d be on the hustle all. the. time. Word of mouth is such a big deal here in LC.

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I'm not trying to give you a hard time and I thought just like you do not too long ago. I'm on the other side of things now and there is a balance to maintain.

You're not a bad client per se. To give you the attention you require, at the rates he charges, may be costing him money. If it were me, and this was the situation, I wouldn't ignore you but I'd charge the appropriate fee for my time and you would either pay it or decide to find an agent that can take care of you like you want for the price you'd like to pay.

I've found that's the most amicable way to handle these situations.

***This guy could also just be lazy and content and not service any of his clients. I'm just giving another perspective on what could be happening.***

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You're either a very successful agent's son with tons of money or you absolutely killed it while working in another agent's office over the course of a year or more

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like an Edward Jones...

i know at minimum a dozen SF agents. most all went through agent aspire. maybe a few are actually good at insurance. all can sell though, which is mostly all that matters to SF.

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It’s like $763/mo. Apparently not very important.

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They probably make like $10/month off of that.

I use an independent agent, and after Zeta, it was nice to have someone to talk to about our claim issues.

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goofball

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goofballs

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What exactly qualifies them for this?