Insurance agents typically do the heavy lifting when it comes to providing coverage, making it easier for clients to access customized policies from their preferred insurance providers. For instance, an insurance agent can ease getting and comparing quotes from different insurance companies. However, while both captive and independent agents work on a commission basis, the type of agent you choose can significantly impact your coverage.
Who Are Captive Agents?
A captive insurance agent sells policies on behalf of one insurance company. In other words, this agent sells a wide range of insurance policies belonging to a specific insurance provider and earns a commission for every policy sold.
Who Are Independent Agents?
As the name implies, independent agents operate independently and sell insurance policies belonging to different insurance companies. They partner with multiple insurance providers and sell their policies at a commission. Independent agents usually work in teams since they are a business establishment on their own.
Independent Vs. Captive Agent: Who Is Better?
There’s no straight answer to this question, particularly because the choice of an insurance agent primarily depends on your needs. For instance, despite the advantages of using independent agents, a captive agent may be the right option for you if you intend to purchase coverage from a specific company. Captive agents are typically more knowledgeable about their carrier’s insurance products, which means you can get all the required information from them. The downside of using a captive agent is that you will be tied to one insurance provider, something that makes it impossible for you to shop around.
However, independent agents offer more benefits which include:
Access to more options and opportunities – Shopping around gives you more options to choose from as well as multiple discount opportunities that can help lower your coverage costs. An independent agent provides multiple quotes from different insurance providers, making the process easier and faster.
Independent agents are easily accessible – In addition to an online presence, independent insurance agents usually have a physical office, where they can host face-to-face client meetings to understand clients’ needs better. Additionally, a physical office helps cultivate credibility and improve reputation.
A better understanding of the market – Considering they work with a plethora of insurance companies offering multiple insurance packages, independent agents tend to be more aware of the market trends. They also have producers who work in a team to tailor suitable insurance coverage options for clients. This collaboration also enables sharing knowledge amongst the producers at an independent insurance agency. This means that by choosing an independent agency, you will have access to more information about the local insurance market and can get expert advice and guidance on the available insurance products. Without the right information, you might end up buying coverage that does not fully meet your needs.
If you are looking for an independent insurance agency near you, contact Singh Agency today. Our experienced agents will help you find an insurance policy that suits your needs and budget. Call us at (516) 605-1010 to learn more.