Brother In-law As Insurance Agent

[jcage]

I'm asking this here with the idea there are some insurance experts/agents/brokers who may help with my decision to insure through a brother in-law.

My brother in-law is a pretty successful agent and from folks I talk to offers pretty good rates through a variety of companies. I wouldn't characterize our relationship as UN-friendly but by the same token, we're not pals either, which leads to my question.

Does insurance agents have much influence or leeway where rates are concerned? Like everyone, I'd like to get a 'buddy deal' on my rates or having a 'friend' on my side in the event there was a claim but I'm also a bit nervous over the ability he would likely have to view personal data that I'm not sure I'd like to openly share. How much access agents have, I'm not sure about but one hears about credit rating info, etc etc so...

If anyone knowledgable on this would offer a friendly piece of advice, it would be much appreciated.

Thanks,
John

 

[jhuang]

Most agents will tell you that they can't alter the rates because they don't make the rates...the insurance companies make the rates.

Of course doing business with family comes with a catch, you have to see them once in a while. Now it may be to your advantage to just keep it business only and family relations is not really going to hurt.

Check his references, see what he has to offer and look at the policy thoroughly. If his price and coverage is better, he's doing you a favor.

 

[Frank Stastny]

I'm an insurance agent and if I buy a policy I pay the same rates that everyone else pays.

An agent may be able to help with a claim and get an underwriter to take a closer look at it but not go against company policy. I think I said that right?

The "confidential information", depending on the type of policy, will usually consist of SS number and answers to health questions. I can't think of an insurance policy that requires a credit rating or income, investments or banking information.

As an agent I pretty much make it a practice not to do business with relatives and friends. It usually doesn't work out well. You touched on it when you said, "I'd like to get a 'buddy deal' on my rates".

I would treat a friend or relative the same way I would treat any client. I would do my best to help in every way I possibly can. Sometimes friends and relatives don't believe one when they say, "I've done everything I can".

Too much potential for hard feelings.

 

[djs]

Really, there is no such thing as a 'buddy' deal in the insurance world. Basically, by law, you pay exactly what anyone else that has the same underwriting characteristics pays.

Insurance agents don't actually see credit reports, they see an insurance score (basically a letter). It is an effective indicator of what your credit score is though, just not much detail behind it.

If you have driving records or a really bad credit and don't want your brother in law to know (and if he doesn't already know) then I wouldn't use him as my agent. On the other hand, most agents do pretty well at separating personal lifes and business stuff. It comes with the territory AND the agents license can depend on it. If he blabs about that DUI you had 4 years ago, you can file a complaint against him with your state department of insurance. He'll have some 'splainin' to do. Because of this, and just general ethics and morals, most agents are pretty good at keeping their mouth shut.

Dan
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I'm an insurance agent and if I buy a policy I pay the same rates that everyone else pays.

An agent may be able to help with a claim and get an underwriter to take a closer look at it but not go against company policy. I think I said that right?

The "confidential information", depending on the type of policy, will usually consist of SS number and answers to health questions. I can't think of an insurance policy that requires a credit rating or income, investments or banking information.

As an agent I pretty much make it a practice not to do business with relatives and friends. It usually doesn't work out well. You touched on it when you said, "I'd like to get a 'buddy deal' on my rates".

I would treat a friend or relative the same way I would treat any client. I would do my best to help in every way I possibly can. Sometimes friends and relatives don't believe one when they say, "I've done everything I can".

Too much potential for hard feelings.

Frank - In Washington state, they use credit as a factor in personal lines rates (auto and I assume home as well). It does come up.

Dan

 

[BTFuzz]

I'm asking this here with the idea there are some insurance experts/agents/brokers who may help with my decision to insure through a brother in-law.

My brother in-law is a pretty successful agent and from folks I talk to offers pretty good rates through a variety of companies. I wouldn't characterize our relationship as UN-friendly but by the same token, we're not pals either, which leads to my question.

Does insurance agents have much influence or leeway where rates are concerned? Like everyone, I'd like to get a 'buddy deal' on my rates or having a 'friend' on my side in the event there was a claim but I'm also a bit nervous over the ability he would likely have to view personal data that I'm not sure I'd like to openly share. How much access agents have, I'm not sure about but one hears about credit rating info, etc etc so...

If anyone knowledgable on this would offer a friendly piece of advice, it would be much appreciated.

Thanks,
John

I insure all 3 of my brother in laws and can assure you there are times when it is uncomfortable on my end. Especially if the insurance co takes a rate increase, screws up on a claim, etc

But I honestly don't think any of them would ever leave me as they know I will always do whatever it takes to help them.

And contrary to popular belief, we have no control over rates...so unless you have something to hide I would let him write your policies.

 

[Frank Stastny]

Really, there is no such thing as a 'buddy' deal in the insurance world. Basically, by law, you pay exactly what anyone else that has the same underwriting characteristics pays.

Insurance agents don't actually see credit reports, they see an insurance score (basically a letter). It is an effective indicator of what your credit score is though, just not much detail behind it.

If you have driving records or a really bad credit and don't want your brother in law to know (and if he doesn't already know) then I wouldn't use him as my agent. On the other hand, most agents do pretty well at separating personal lifes and business stuff. It comes with the territory AND the agents license can depend on it. If he blabs about that DUI you had 4 years ago, you can file a complaint against him with your state department of insurance. He'll have some 'splainin' to do. Because of this, and just general ethics and morals, most agents are pretty good at keeping their mouth shut.

Dan
- - - - - - - - - - - - - - - - - -


Frank - In Washington state, they use credit as a factor in personal lines rates (auto and I assume home as well). It does come up.

Dan

My bad, I was only thinking in terms of L&H. Thanks for pointing that out, it is an important consideration.

 

[TeePee]

My friends and family and neighbors pay for my service. I have no control over rates. Each state insurance dept controls those.

 

[Guest]

MAN!!! I wish I could charge some people even more because they are such pain in the asses!!

I will add, I would hope a family member would watch out for you more than a guy on the street corner.

Besides, this might help you become better friends.

 

[LGilmore]

It will come down to being comfortable with your sister knowing your "business". While your inlaw would never tell her anything harmful, it may eat at you that he could. So think it over, no reason to screw family out of a commission you'd give to someone else. But it is your comfort zone.

Me? I find I have less patience with family members if they can't grasp concepts or knowledge. I am far too short with them as I unrealistically expect them to be smarter than all other customers I have. Family roles can muddle the relationship and that works both ways.

 

[billberry12]

Keep it simple. Don't do it.