How to find a good insurance agent

1. Ask for referrals from friends and family

Word of mouth can be a great way to find an insurance agent. A referral can help you find an agent with a good reputation, but you should still check the agent's qualifications. Ask people you trust who they use and why they recommend that agent.

"Ask for referrals not based on who is sending birthday cards to their clients or who is the nicest," Hungelmann says.

Ask your friends and family what the agent did well. Did the agent explain coverage clearly? Did they help with a claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing.? Did they answer questions promptly? These details are more useful than a recommendation based only on personality.

Chad Bitterlich, vice president of Navion Insurance Associates, says it's best to hire an agent located "close to home."

"Many people prefer to have in-person appointments with their agent, and most agents prefer to know their clients personally," he says. "There is really no substitute to having a local agent who is an active member of your community."

As mentioned, some agents represent a single insurer—such as State Farm or Allstate—while others work independently.

Captive vs. independent agents

A captive agent represents one insurance company and can recommend only that company's policies.

An independent agent can sell policies from multiple insurance companies, allowing you to compare coverage and prices through one agent across different insurers.

A direct insurer sells coverage directly to customers without using an agent.

"There are obvious benefits if your agent represents multiple insurance companies and has the flexibility to find the right company for your particular needs," Bitterlich says. However, you may feel it is more important to have your insurance consolidated with one company. Either way, look for an insurance agent [who] has your best interests in mind, not his or her commissions.

2. Interview several prospective insurance agents

Interview two or three agents before you choose one. Ask them about specifics, as you would with an accountant or lawyer. Compare how clearly they explain the policy, how well they answer your questions, and whether they pressure you to buy a policy. A good agent should help you understand your choices before you make a decision.

"Talk to them about your situation and see which ones give you the best advice," says Hungelmann.

He acknowledges that such extensive interviewing can be a bit tedious.

"But once you get the expert on your team, you're going to have someone who really knows what they're doing," he says. "Your assets will be better protected as a result. There's nothing worse than finding that a claim isn't covered properly at the time of the claim."

Don't be afraid to speak up and to ask about an agent's experience.

"Ask for references," says Bitterlich. "A good agent should have several clients to provide enthusiastic recommendations."

The very nature of the agent-client relationship involves policyholders divulging "all sorts of personal information" to their agent, Bitterlich says. So, trust and professionalism are important.

"If you feel that your agent is simply interested in selling you a policy, you should look elsewhere," he says.

3. Look for an insurance expert with experience and accreditation

Experience and professional designations can help you assess an agent’s knowledge, along with a valid license and a good reputation. Ask how long the agent has worked in insurance, what types of policies they sell, and whether they have helped people with needs like yours.

Look for agents who are true insurance experts. Such an expert "can guide you through how to fill out a claim properly, so you get paid top dollar for your claim," Hungelmann says.

An experienced agent will also be able to make your case to the claims department if you get into a dispute about a claims payment.

A good agent will also keep an eye on how your insurance requirements may shift over the years.

"Many people don't realize that their insurance needs may change from year to year, and it is important for your agent to communicate the potential for these changes," Bitterlich says.

Insurance designations to look for

CPCU: Chartered Property Casualty Underwriter
CIC: Certified Insurance Counselor
AAI: Accredited Adviser in Insurance
CLU: Chartered Life Underwriter

Bitterlich agrees that advanced certifications reveal important insights about an agent.

"An advanced designation demonstrates that your agent has a commitment to education and increasing his or her knowledge," says Bitterlich.

Do not discount other types of industry experience, Bitterlich says.

"Agents who have additional experience in the insurance industry outside of sales -- in underwriting or claims, for example -- may have unique insight into the insurance industry," he says.

4. Check the insurance agent's background and license

Make sure an agent's licensing is up to date and meets state requirements. Your state insurance department can help you verify the agent's license and, in some states, check complaint information. You should also confirm that the insurer is licensed to sell the coverage you want.

"You should not hesitate to ask for a copy of your agent's license, especially if there is no easy or convenient way to independently verify his/her license status," says Bitterlich.

Also, check for any complaints against an agent.

Most state insurance offices have an area on its website where you can check the license status of your agent, and some will also allow you to check if there are any complaints. You always want to make certain that your choice of an agent is legit.

What to check

License status: Confirm that the agent is licensed in your state.
Experience: Ask how long the agent has worked in insurance and whether they handle the type of coverage you need.
Complaints: Ask your state insurance department about complaint information for the agent.
Professional credentials: Check whether the agent has relevant insurance designations or certifications.

Remember, the goal is to find an agent who is properly licensed, has a good track record and puts your interests first.

Additional reporting by Melissa Neiman

FAQ: How to find a good insurance agent

What should I look for in an insurance agent?

Look for an agent who understands your coverage needs, explains policy terms in plain language, and gives you enough information to make an informed decision. The agent should also be responsive after the sale and willing to review your policy when your circumstances change.

Is an insurance agent better than buying directly from an insurer?

An agent is better if you want guidance with coverage choices or need help understanding policy details. Buying directly from an insurer works well if you already know what coverage you need and prefer to manage the process yourself.

When should I replace my insurance agent?

Consider finding a new agent if your questions go unanswered, your coverage needs are ignored, or you feel pressured to purchase unnecessary policies. You can also switch agents if you want access to different insurers or need an agent with more specialized experience.

Can I change insurance agents without changing insurers?

Yes. In many cases, you can change the agent who services your policy without changing the insurance company. Ask the insurer how to transfer your policy to another agent and confirm whether the new agent can continue managing your coverage.