What Is the Difference Between Captive and Independent Insurance Agents?
Searching for the insurance you need to cover yourself and your family can be overwhelming. The terminology alone can often be enough to make you throw up your hands in frustration. Two terms that might cause you the biggest headache are “captive insurance agent” and “independent insurance agent.”
Before now, you may have thought an insurance agent was simply an insurance agent. But there are, indeed, different kinds of agents, and the distinctions between the two can mean quite a lot.
On that note, here’s a look at the differences between captive and independent insurance agents and how one might benefit you more.
An Independent Insurance Agent vs. Captive Insurance Agent
The most prominent difference between an independent insurance agent and a captive insurance agent is the number of insurance companies each agent works with.
A captive insurance agent, also known as a dedicated agent or exclusive agent, works for one insurance company and only sells the products of that company. A captive agent is paid a salary, commission, or both, and they also receive benefits. Captive agents receive support and training from their insurance company and can become extremely knowledgeable about the products they sell. However, their products may not meet your needs.
An independent insurance agent, in contrast, doesn’t work for any one insurer. They may work alone or as part of an independent insurance company, such as Garrett Insurance. In either case, they will serve as the middleman between you and the insurance firm, and they’ll earn a commission on the products sold. With access to many insurance companies and products at once, independent insurance agents can deliver policies that fit your specific coverage needs.
Benefits of Using an Independent Insurance Agency
Getting the insurance you need, instead of the one a captive agent needs to sell, is a great advantage that independent insurance agencies provide. Additional benefits of working with such an agency include the following:
Saving Time
An independent insurance agent can gather your information in just one telephone call and compare multiple quotes at once, saving you from calling or driving around town to collect quotes from several agents.
One-Stop Shopping
Working with an independent insurance agency means you can fulfill all your insurance needs (health, auto, life, commercial, etc.) in one fell swoop.
A Personal Advisor From Your Community
Independent insurance agents often live and work in your neighborhood, giving them a better understanding of your insurance needs. And since they do not have sales quotas to meet, they can spend more time answering your questions, helping you file claims, and advocating for you.
The Ability to Keep Your Agent
Over the years, your insurance needs will likely change, or your insurance company may drop your coverage. With an independent insurance agent, those circumstances are never an issue. Your independent agent can search multiple companies and find you another policy.
Building a Relationship
Over time, independent insurance agents not only get to know you but also learn about your family. That kind of long-term relationship can see to it that you have the right insurance at every stage of your life.
Independent Insurance Agents Look Out for You
Working with multiple insurance companies, independent insurance agents possess a broader view of the insurance industry and a deep knowledge of other companies. That puts them in the unique position of being able to help you get your insurance needs met and save you money in the process.