Insurance companies come in two different types: local and national. Both have ties to the community, and both have a vested interest in helping their clients with their insurance needs. What sets the two types apart is the fact that a national company tends to represent one insurance company, while the local company represents multiple companies.
Both have their advantages, but the local company offers advantages that the national company can’t. Those advantages come in the form of quality customer service, familiarity with the community and its needs, and comprehensive knowledge of insurance policies. You may prefer to work with a national company because you want the services offered by the major insurer, but a local company can do the same and more. Read on to learn more about the differences to help you make your choice.
Understanding the Differences Between Local and National Insurance Companies
You’re probably aware of the existence of insurance companies in your community, and you may even have had social interactions with them. But are you aware of their status as an insurance company? An agency can be one that’s affiliated with a single insurer or has access to major and minor insurance companies across the nation.
It’s true that an agent who works with a single insurance company is a local agent, but they’re guaranteed that they’ll have little in the way of competition from other agents that represent the same company. In contrast, a truly local insurance company is one that has access to multiple insurance companies, giving them an advantage in the form of being able to obtain quotes and tailor policies to your needs.
Personalized Service: The Benefits of Choosing a Local Insurance Provider
A local insurance provider is one that puts their community’s interests first when it comes to finding the right insurance policy. They’re intimately familiar with the way of life in their neighborhood, borough, or town and what drives people’s needs for coverage. A small business owner who’s looking to provide health coverage for their NYC employees benefits from the local insurance provider’s knowledge and expertise. The local insurance provider has experience insuring similar businesses and knows where to look for policies that align with the needs of the business.
Claims Processing and Support: Which Option is More Efficient?
Processing a claim can sometimes be a difficult task due to the insurance company’s need for documentation and internal processes. A national insurance agent has training and familiarity with the claims process for the company they represent, as does the local insurance company. The major difference between the two comes down to advocacy.
A local insurance company makes it a point to work directly with you to process a claim and intervene with the insurance company when necessary. For example, you need help with making a claim for your individual health insurance in Westchester, NY, and you’re not sure what to expect once you’ve started the process. A local insurance company is familiar with how your insurer processes claims and provides assistance when you run into a problem with the claim.
Flexibility and Customization of Insurance Policies
A national insurance company is restricted to selling the policies that are offered by the company they represent. When you’re looking for a policy that’s tailored to your needs, you may not be able to with a national company. Sometimes, a policy can be customized, and sometimes not.
The fact that a local insurance company has access to national and regional insurance companies makes it easier to get a customized policy. They’re also more flexible in terms of their research and go the distance to find a reliable insurer who will write a policy that gives you coverage. Overall, a local insurance agency has more in the way of resources when it comes to getting you a custom policy.
Margolis & Associates’ Expertise in Helping Clients Find the Best Fit
At Margolis & Associates, we care about finding our clients the right policy for their insurance needs. We listen to our clients when they express what they need in terms of insurance coverage, ask questions, and share our knowledge about what policies are most likely to be the best fit. Once we understand what a client wants in a policy, we go looking in order to find as many choices as possible for our clients to compare. Along the way, we stay in touch and make sure that you understand the coverage offered by a policy so you have peace of mind with the policy you select.