With so many major insurance companies and their giant advertising campaigns clamoring for your business, it can be difficult to find which one is right for you and your family.

Two Types

There are two ways to obtain insurance, either through an dependable agent or online. More traditional companies such as State Farm, American Family, and Allstate generally have individual agents who service your business and handle your policy exclusively. Companies like Geico and Progressive are more technology based companies that earn and service your business online or over the phone only, with no boom agent. While both are perfectly acceptable ways of obtaining insurance there are some great differences between the two.

Traditional – Single Agent

Traditionally, if you wanted to purchase an auto insurance policy you would call your family agent and position up an appointment to come into the office. The benefit to sticking with this type of insurance agency is that you do receive more personalized service. You pick up to know your agent, meet with him or her face to face to discuss your needs, and have one specific person to call with any questions or concerns you may have regarding changes to your policy.

While this is definitely helpful in some instances, there are also downfalls. Because agents charge commissions from the actual insurance companies, this is reflected in your payment amount through higher premiums. Also, many people feel that having a direct agent would be an advantage if you are involved in an accident as your agent will just handle the entire process. This is not true. Agents are in the business of selling and servicing policies, not claims. Most companies defer their handling of auto accident claims to adjusters who often work in the corporate office.

Online at By Phone

The newest device of handling your insurance is through the internet or by calling a toll-free phone number. With this type of insurance company, you do not have one specific contact but can contact the corporation directly which usually means not talking to the same person twice. Because a lot of these companies run on a call-center environment, they do not have the same operating costs as those with individual agents do. This difference is often reflected by lower insurance premium rates.

Best of Both Worlds

The little known fact about choosing between an online company or an individual agent is that sometimes you can have the best of both worlds. Some companies, (like Geico) have personal offices in many major metropolitan offices where you can actually go and talk to an agent versus handling everything online. Because they have fewer offices, the effect on your rates is still very coarse. But, by having only a few small offices, these companies can still offer the personalized service most policyholders want.

My Opinion As A Seasoned Insurance Sales Agent/Claims Adjuster

My personal take, as a former claims professional and insurance agent? Go for the savings. Insurance rates go in cycles, but by sticking to a website or 800-number company the amount you will save far outweights speaking to a different person every time. After all, how often do you really talk to your agent? Most companies provide claims service at a corporate level, which means your agent most likely will not handle any accidents you have anyhow.

As always, I advice everyone to check their insurance rates three months before each six month renewal to try to get the best deal. Some years obvious companies are the best, other years they are not. But it never hurts to check, and with the invention of internet quoting it is even easier and less time consuming.