Despite the fast technological advancements many people still prefer personal touch and buy auto insurance coverage from brokers. Often, you may come across an old school one-man business and they may be great in many ways. They may like to build a personal relationship with customers and always happy to help. In time, people can really depend on such agents to sort coverage out and even help on claims. And they start worrying about such an arrangement and safety of their policies if something happens to such person or business.
First of all, he or she may appear to be a sole trader but usually they are part of a much larger independent brokers or nationwide agents network. It is likely that the network has a contingency plan in place for closed practices. It wouldn’t take long for someone else to take over the practice’s customers. Or there may be other arrangements in place. An older and responsible person would have thought about such eventualities and designated someone to take over. Many others would love to get their hands on an established client list.
Secondly, no matter how you purchase them you have your policies with you and you can contact the company direct if you ever need to. They are only middlemen in this case and you are insured by the company. You were probably just calling your guy whenever you need something or he or she was calling you to let you know of the changes or renewals. Just keep hold of the documents that would show you who the underwriters are, policy numbers and contact information. In case something happens, you may need to dig them out and use those details.
It is difficult to find an old school independent broker with abundance of experience. You shouldn’t worry about other things too much and let it sort itself out should it come to that. Alternatively, you can always ask them the question and find out what provisions they have made. This isn’t an awkward query and you are entitled to know.
It is actually very valid concern and can apply to any intermediary set up regardless of the size. In any case, you have nothing to worry about if they were open and honest with you, made sure you got the policy documentation or confirmation promptly and always told you about the source of coverage and let you pay the premium direct to the insurance company.
The only problem may be with secretive types and especially if they collect the premiums. Then, you have to make sure that you receive confirmation direct from the carrier to ease your mind.