I recently received a 1940s insurance advertisement from a colleague, and I've found that its message still applies to independent insurance agents today.
The advertisement is from a fraternal Wisconsin insurer, Catholic Knights of Wisconsin—now Catholic Financial Life—and it makes an important and timeless point of which no agent should ever lose sight. The message is you can save money, but the greater problem is likely paying too little. With an intangible promise like an insurance policy, cheaper is often less coverage or no coverage.
The advertisement also illustrates how independent agents can excel against competitors who are not as well positioned to know their clients’ risks and to educate on coverage options in a logical framework that goes beyond price alone.
An example is a client who chooses to forgo parallel limits of uninsured and underinsured motorist (UM/UIM) limits on his personal umbrella policy to save $150 annually. One approach in line with the 1940s advertisement could be, “If $150 for $1 million is too much, how cheap do you want your coverage to be?”
My insurance agent and his placement of high UM/UIM for me is an example of the sort of conversation an independent agent can have with a client.
My agent knew I was an avid bicyclist and, therefore, he knew in a congested metropolitan area like Washington, D.C., where I live, I would value high UM/UIM limits. He pressed this even in the face of my insurer not offering UM/UIM on its umbrella.
He knew I had options, and one was even available through a Big “I”-endorsed
program. He also presented me an option to increase my primary automobile liability limits to $1 million where matching UM/UIM was available.
My wife and I are much happier knowing I now bike to work with coverage placed under the watchful eye of my independent agent. Had I purchased elsewhere, would anyone have asked?