So, you are getting used to purchasing your car insurance policy through an agent for many years. But, your trusted insurance agent might decide to move agencies or leaves the biz. When that happens, what would happen to your insurance policy?
Do you need to move with them? Are you contractually obligated to that agency? Read on to learn what it means if your agent decides to call it quits.
What happens to your policy if your insurance agent quits
Your agent helps convey the information from the company, renew the policy plan, expedite the claims process, make appeals, etc.
But your policy’s contract is an agreement between you and the insurer, not the agent. An agent works as an intermediary between the insurer and the insured.
Hence, your insurance policies will remain intact if your agent leaves the company.
Who will be your new agent
A responsible agent will seek out their willing colleagues to take on their soon-to-be ex-clients before leaving. An agent who wishes to maintain a healthy relationship with the clients who supported them, inform their clients personally beforehand, explaining their decision to leave.
However, some may quit without informing and leave you unattended. Their clients will probably receive a letter from the insurer with regards to the departure of their agent.
Do not worry too much about what would happen to your insurance policy. You are still a customer of your insurer, hence they will take care of you. Your insurer will honour the policy as long as your premiums are accounted for.
The insurer can allot any of the orphan insurance policies to their active individual insurance agents in the event of an agent ceasing to be part of the insurer. You will receive a letter informing you that your policy is taken up by another representative from the insurance company.
Why do insurance agent leaves?
Your insurance agent may have other plans in store for them. There are mainly two reasons why agents leave.
- They want to leave the industry as a whole to look for better opportunities, away from insurance.
- They are moving to work with another company that gives them more benefits.
Should you follow your agent to his/her new insurance company?
Some agent who has a long way relationship with their loyal customer may use the chance to bring them into the fold. Some may tell you that the new insurance company that they are working have better offers and coverage. Of course, he would claim his insurance is better as he wants to sell.
But it would be an ‘unhealthy’ attitude trying to weaponise the networking for that purpose.
But it is up to you to decide. Do not decide to follow your agent just because you have known your agent.
Therefore, do your research before determining whether it is worth the switch. After all, you’re the one paying for it.
Save yourself a trouble, buy insurance online
We recommend you purchase your insurance online and save yourself from trouble in the future.
Simply use the biggest insurance-comparison website in Malaysia, Bjak to purchase your insurance. You can do it easily from anywhere you like online.
We provide more than 10 insurance brands for you to choose from. You can survey and make comparisons across multiple insurers conveniently. We help you get the best policy plan for your vehicle according to your budget and needs.
Bjak is one of Malaysia’s biggest insurance comparison sites, offering 15 insurance brands. Get free car insurance quotes at Bjak and renew your insurance and road tax in just 5 minutes.
