Choosing the Right Insurance Agent

When you are looking for the right insurance agent, it may be as important as choosing the right doctor. Your best resources are your relatives, neighbors, co-workers, as well as professional agent/broker associations. As of January 1, 1997, all agent/brokers are required to include their license number on their business cards. You may wish to verify the producer’s license status by going on the California Department of Insurance (CDI) Web site at www.insurance.ca.gov, or call the consumer Hotline at 1-800-927-4357. This way you can confirm that your agent/broker and insurer are licensed to conduct business in the state of California. It is critical that you feel comfortable with the agent of your choice. You need to be able to openly discuss the coverage and services that will best suit your needs. Remember that it is not the responsibility of the agent/broker to determine either the type or the amount of coverage you need, so good communication is key. Certain insurance companies specialize in the non-standard auto market for what they consider to be high-risk drivers.  If you can’t find a company that will insure you, you can get liability coverage through the California Automobile Assigned Risk Plan (CAARP). This plan is designed for drivers who do not qualify as good drivers and are unsuccessful in obtaining insurance from non-standard or approved surplus lines insurance companies. However, be aware that the eligibility requirements and rates vary. To apply, find a CAARP certified insurance agent/broker on CAARP’s Web site at www.aipso.com or call CAARP direct at (800) 622-0954. Your application is then assigned to an insurance company. Keep in mind that the rates will be the same no matter what insurance company issues the policy. After three years with a clean driving record, consumers underwritten through CAARP can move from the program to a standard lines insurance company.