What to Do When Your Insurance Agent Retires or Sells Their Agency
When your trusted insurance agent retires or sells their agency, losing a valuable partner in protecting your assets can feel like losing a valuable partner. Your agent likely understood your needs, provided tailored recommendations, and made navigating insurance easier. But what happens now? What steps can you take to ensure your coverage and service remain top-notch?
This guide will help you navigate this transition while maintaining peace of mind and preferred insurance carriers.
What Happens When Your Insurance Agent Retires or Sells Their Agency?
Policies Stay Intact
The good news is that your insurance policies remain unaffected. These contracts are agreements between you and the insurance carrier, not the agent. Your coverage is secure as long as you continue to pay your premiums.
Your Account is Transferred
When an agent retires or sells their agency, the “book of business”—their list of clients—is typically sold to another agency or broker. This means:
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- You’ll likely be assigned a new agent or account manager to handle your account.
- In some cases, particularly with large insurance carriers, you may be directed to a self-service platform for account management.
Challenges May Arise
While policies remain intact, service quality can vary. You may find the new agent’s approach doesn’t align with your expectations, or you might feel lost in a self-service system. If you’re happy with your carriers but not the new agent, there are steps you can take to keep your policies while exploring better service options.
What Should You Do If You’re Affected by This Change?
Option 1: Do Nothing (For Now)
It’s reasonable to wait and see how the new agency or agent handles your account. Use this time to evaluate:
- How responsive the new agent is to your inquiries.
- Whether they provide the same level of personalized service as your previous agent.
However, if you notice gaps in communication or feel neglected, it might be time to take action.
Option 2: Contact the New Agency
Contact your new agency or agent to introduce yourself and learn about their account management approach. Ask about:
- How they handle policy reviews, renewals, and claims.
- Whether they can provide the same level of service you expect.
If you’re not satisfied with their answers, consider exploring other options.
Option 3: Keep Your Insurance Carrier but Switch Agents
You can request a change if you’re happy with your insurance carrier but not your new agent. Here’s how:
- Contact Your Insurance Carrier: Let them know you want to work with a different agent. They can provide a list of authorized agents who represent the same carrier.
- Research New Agents: Look for independent agents who work with your current carrier. Independent agents often represent multiple carriers, giving you access to more options and personalized service.
- Make the Switch: Once you’ve chosen a new agent, they’ll handle the paperwork to transfer your account.
Option 4: Find a New Independent Agent
If you’re dissatisfied with the entire agency handling your account, this is an excellent time to explore working with a local independent agent. Independent agents can:
- Offer policies from multiple carriers to find the best fit for your needs.
- Provide personalized service and regular coverage reviews.
- Help you identify opportunities to improve coverage or save on premiums.
Top Reasons Why People Might Switch Insurance Agents
Sometimes, transitioning to a new insurance agent after your previous one retires or sells their agency doesn’t go as smoothly as hoped. Even if your insurance policies remain intact, poor experiences with the new agent can motivate you to seek a better fit. Here are some of the most common reasons people decide to switch agents:
1. Poor Customer Service
One of the biggest frustrations for insurance customers is a lack of timely or effective communication. You might consider switching agents if:
- Your emails or phone calls go unanswered for days (or weeks).
- Promised quotes, updates, or policy reviews don’t arrive when expected.
- You feel like just another number instead of a valued client.
2. Limited Availability
Does your new agent’s availability align with your needs? Challenges such as:
- Long response times for questions or claims.
- Business hours that conflict with your schedule.
- A lack of flexibility in addressing urgent concerns.
These can quickly leave you feeling unsupported, especially when you need help navigating complex insurance matters.
3. Personality Conflicts or Incompatibility
Your insurance agent should feel like a partner who understands your goals and priorities. If their personality or approach doesn’t align with yours, it can create unnecessary stress. For example:
- Do you feel your concerns are brushed off or not taken seriously?
- Does their communication style leave you confused or frustrated?
If your agent isn’t someone you can trust or rely on, it may be time to find a better match.
4. Relocation
Relocating to a new area can mean needing a new agent, especially if your previous agent doesn’t operate in your new location. While some agents can still service your account remotely, many people prefer the convenience and personal touch of working with a local independent agent who understands the specific risks in their area.
5. Lack of Experience or Expertise
Insurance needs can vary widely, and not all agents have the expertise required to handle complex or niche situations. You might decide to switch if:
- Your new agent doesn’t seem knowledgeable about your specific insurance needs (e.g., business insurance or specialized coverage).
- They fail to provide detailed answers or proactive advice about your policies.
Why a Policy Review Might Be a Good Idea Now
The transition to a new agent is an excellent opportunity to review your insurance coverage. Here’s why:
- Coverage Updates: Ensure your policies align with your current needs and goals.
- Cost Savings: Check if you’re eligible for discounts or better rates with your current carrier or new ones.
- Gaps in Coverage: Identify areas where you may need additional protection.
Older agents or agencies may not have provided access to competitive rates or newer carrier options. LoPriore Insurance can help you explore these options.
Steps to Keep Your Preferred Carriers While Switching Agents
If you want to maintain your existing policies but switch agents, follow these steps:
- Reach Out to Your Carrier:
- Contact your insurance company to request a reassignment to a different agent.
- Confirm that your policies remain unchanged during the transition.
- Research Independent Agents:
- Look for agents with strong reviews and a reputation for excellent service.
- Ensure they are authorized to represent your current carrier.
- Interview Potential Agents:
- Ask questions about their approach to service, claims management, and coverage reviews.
- Confirm their experience working with your preferred carrier.
- Finalize the Switch:
- Work with your new agent to transfer your account.
- Double-check with your carrier to ensure the reassignment is complete.
Conclusion
Navigating the transition when your insurance agent retires or sells their agency doesn’t have to be overwhelming. By taking proactive steps, you can maintain your preferred carriers while ensuring you receive the level of service you deserve. Whether it’s finding a new agent or reviewing your policies, this is an opportunity to take control of your insurance and secure the best coverage for your needs.
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