Insurance Gimmick?

Nov 15, 2024 at 09:14 AM CST + 3
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Always when I go to renew insurance and I decide I want to shop around a bit I always hear the same words. “ Don’t shop around because then we end up blocking each other out of the market and we won’t be able to get you as good of a rate.” Is that actually true? Or are these insurance guys just trying to keep me from finding something better. I recently purchases housing insurance on a house I bought and the title officer told me that he would shop five or 6 different companies and really make them fight over it. He said that’s what he does and he has very good success.

Replied on Fri, Nov 15, 2024 at 11:23 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. I think its an accruate statement, but only applies to different agencies trying to get quotes from the same carrier. For example, if you currently have Sentry, and you reach out to a new brokerage agency for quotes and they quote you from Sentry, there is a chance your current agent may not be able to quote Sentry again. In that scenario, however, since you are currently a Sentry client through Agency A, Sentry may allow your current agency to still get a renewal quote, but I think if the new agency you reached out to were to quote Canal, for example, then your current agent may not be able to quote Canal for you since the new agency already received one on your behalf. Ultimately, if you like your current agent, reach out to them in advance of any new agencies to allow them to gather quotes from all of their partner carriers first. I love my agency, so I allowed them to get their quotes before I initiated receiving quotes from a second agency, which is still worthwhile because each agency has its own set of carriers they partner with.

Replied on Fri, Nov 15, 2024 at 11:23 AM CST

Posted by a private BulkLoads.com member.

I think its an accruate statement, but only applies to different agencies trying to get quotes from the same carrier. For example, if you currently have Sentry, and you reach out to a new brokerage agency for quotes and they quote you from Sentry, there is a chance your current agent may not be able to quote Sentry again. In that scenario, however, since you are currently a Sentry client through Agency A, Sentry may allow your current agency to still get a renewal quote, but I think if the new agency you reached out to were to quote Canal, for example, then your current agent may not be able to quote Canal for you since the new agency already received one on your behalf. Ultimately, if you like your current agent, reach out to them in advance of any new agencies to allow them to gather quotes from all of their partner carriers first. I love my agency, so I allowed them to get their quotes before I initiated receiving quotes from a second agency, which is still worthwhile because each agency has its own set of carriers they partner with.

Replied on Fri, Nov 15, 2024 at 11:28 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Hey Derek, Good Question. Why Agents Mention Market Blocking Exclusive Carrier Access: Many insurance companies only allow one agent or brokerage to quote for a particular client. Once an agent submits your information to that company, no other agent can offer you a quote from that same insurer. This is known as "blocking the market." Most agents will than ask for an Agent of Record letting naming them as the exclusive agent to represent that quote. Most truck insurance agents represent 80% of the trucking insurance companies. So if multiple agents are going to the same markets it rarely helps the trucking company. However, some preferred trucking agents have direct contracts with the other 20% of truck insurance markets (Great West, Sentry, Ten Four, Acuity, Continental Western). We consider these markets as direct, so some agents wont have the ability to approach these markets. My Recommendation:Choose which agent you want to represent you and ask which markets they plan on approaching. An agent with longstanding relationships with underwriters can usually get deals done that other less preferred agents can't. If your agent doesn't represent all the best markets I would then approach a different insurance broker who can appraoch the rest of the insurance markets. The best agents should be able to review your account and advise which markets will likely be the best fit for your operation. If you need more information feel free to reach out to me at [email protected] and I can point you in the right direction.

Replied on Fri, Nov 15, 2024 at 11:28 AM CST

Posted by a private BulkLoads.com member.

Hey Derek,

Good Question.

Why Agents Mention Market Blocking

Exclusive Carrier Access: Many insurance companies only allow one agent or brokerage to quote for a particular client. Once an agent submits your information to that company, no other agent can offer you a quote from that same insurer. This is known as "blocking the market." Most agents will than ask for an Agent of Record letting naming them as the exclusive agent to represent that quote.
Most truck insurance agents represent 80% of the trucking insurance companies. So if multiple agents are going to the same markets it rarely helps the trucking company. However, some preferred trucking agents have direct contracts with the other 20% of truck insurance markets (Great West, Sentry, Ten Four, Acuity, Continental Western). We consider these markets as direct, so some agents wont have the ability to approach these markets.
My Recommendation:Choose which agent you want to represent you and ask which markets they plan on approaching. An agent with longstanding relationships with underwriters can usually get deals done that other less preferred agents can't. If your agent doesn't represent all the best markets I would then approach a different insurance broker who can appraoch the rest of the insurance markets.

The best agents should be able to review your account and advise which markets will likely be the best fit for your operation. If you need more information feel free to reach out to me at [email protected] and I can point you in the right direction.

Replied on Sun, Nov 17, 2024 at 08:24 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Here is what I do...I have an agent that has earned my business by providing the coverage I want at the cheapest price possible. The way I do renewals, my current agent gets 1st chance. I tell them, once you have shopped it out to all your markets let me know and at that point I'm getting 2-3 more quotes. Basically that gives the guy that has been what I want for the best price the first chance at 80% of the markets. If one of the other guys can beat the price with the same coverage on the other 20% of the carriers then they earn my business, and will get the 1st chance of our renewal next time around. Until someone can actually save me money by insuring me with a carrier that my current agent doens't have access to then I'm loyal to my current agent.

Replied on Sun, Nov 17, 2024 at 08:24 PM CST

Posted by a private BulkLoads.com member.

Here is what I do...I have an agent that has earned my business by providing the coverage I want at the cheapest price possible. The way I do renewals, my current agent gets 1st chance. I tell them, once you have shopped it out to all your markets let me know and at that point I'm getting 2-3 more quotes.

Basically that gives the guy that has been what I want for the best price the first chance at 80% of the markets. If one of the other guys can beat the price with the same coverage on the other 20% of the carriers then they earn my business, and will get the 1st chance of our renewal next time around. Until someone can actually save me money by insuring me with a carrier that my current agent doens't have access to then I'm loyal to my current agent.

Replied on Tue, Nov 19, 2024 at 04:06 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "Here is what I do...I have an agent that has earned my business by providing the coverage I want at the cheapest price possible. The way I do renewals, my current agent gets 1st chance. I tell them, once you have shopped it out to all your markets let me know and at that point I'm getting 2-3 more quotes. Basically that gives the guy that has been what I want for the best price the first chance at 80% of the markets. If one of the other guys can beat the price with the same coverage on the other 20% of the carriers then they earn my business, and will get the 1st chance of our renewal next time around. Until someone can actually save me money by insuring me with a carrier that my current agent doens't have access to then I'm loyal to my current agent." Wes, I agree. I think that's a solid model. Loyalty plays a big role in the underwriting process. If insurance companies see you switch insurance carriers or agents every year, they're unlikely to work your account very hard because they don't think they have a legitmate opportunity to write your business. Sticking with an agent who understands your business and can communicate the ins-and-outs of your operation to the underwriters can give the underwriters confindence to release the best price possible.

Replied on Tue, Nov 19, 2024 at 04:06 PM CST

Posted by a private BulkLoads.com member.

Quote: "Here is what I do...I have an agent that has earned my business by providing the coverage I want at the cheapest price possible. The way I do renewals, my current agent gets 1st chance. I tell them, once you have shopped it out to all your markets let me know and at that point I'm getting 2-3 more quotes. Basically that gives the guy that has been what I want for the best price the first chance at 80% of the markets. If one of the other guys can beat the price with the same coverage on the other 20% of the carriers then they earn my business, and will get the 1st chance of our renewal next time around. Until someone can actually save me money by insuring me with a carrier that my current agent doens't have access to then I'm loyal to my current agent."

Wes,

I agree. I think that's a solid model. Loyalty plays a big role in the underwriting process. If insurance companies see you switch insurance carriers or agents every year, they're unlikely to work your account very hard because they don't think they have a legitmate opportunity to write your business.

Sticking with an agent who understands your business and can communicate the ins-and-outs of your operation to the underwriters can give the underwriters confindence to release the best price possible.