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For Immediate Release: |
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Christie Administration Offers Tips on Choosing an Insurance Agent |
TRENTON – New Jersey Department of Banking and Insurance Commissioner Ken Kobylowski today provided advice to consumers when shopping for insurance coverage. Whether buying and insuring a new car, starting a small business or moving into the state, insurance shoppers should understand who they are dealing with and know that there are three main ways to secure an insurance policy in New Jersey. “Consumers can buy insurance through different pipelines,” said Commissioner Kobylowski. “Whether purchasing a policy directly from a company, through an agent employed exclusively by one carrier, also known as a captive agent, or an independent agent or commercial broker, insurance shoppers in New Jersey can be confident that they are getting the best coverage if they understand basic issues and their market choices.” Research Insurance Options Expanding insurance knowledge is the first step in making informed decisions about coverage offered. Understanding terms and standard policy conditions used in various lines such as auto, homeowner’s and business insurance is a key step toward selecting the best protection. For more information on these insurance lines, visit: www.state.nj.us/dobi/division_consumers/insurance/ins_menu.htm Direct Writers –Carriers offer coverage directly by phone or through online purchasing. They may also employ licensed agents who operate local offices. When buying directly from an insurer without an agent, consumers need to verify that the carrier is licensed by the State. To verify online that a carrier is licensed in New Jersey visit: www.state.nj.us/dobi/data/inscomp.htm Agent Types When shopping for coverage, it is important to understand the types of agents in the marketplace. Independent Agent – Some agents have contracts with several different insurance carriers. These agents can assist consumers in comparing coverage options offered by multiple companies on the same risk. Captive Agent – Other agents write exclusively with one insurance company. Consumers who are certain of the carrier they want to use may want to utilize these agents. Insurance Broker – Brokers typically write commercial coverage and life and health insurance for businesses. Business insurance coverage tends to be a more complicated transaction. Owners may want to utilize a broker who specializes in finding insurance for business risks to maximize coverage for the best possible cost. “There is no set formula for finding the best coverage to fit your needs,” said Kobylowski. “However, word of mouth may be the most popular and reliable indicator that you have found the right coverage source.” Commissioner Kobylowski provided the following suggestions if consumers decide to search for an independent or captive agent rather than buy insurance directly from a company:
Select an Agent Whether picking an agent for the first time or switching agents or companies, it is a good idea to have several to choose from. When evaluating options, consider these factors:
Protect Yourself
“The best way consumers can protect themselves is to research the agent and company under consideration,” said Commissioner Kobylowski. “Always: Stop before writing a check or signing the contract; Call this Department; and Confirm both the agent and carrier are licensed to write insurance in New Jersey.” For more information Consumers requiring additional guidance or answers to questions should visit: www.dobi.nj.gov or call 1-800-446-7467. |
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State of New Jersey New Jersey Department of Banking and Insurance |