What Does an INDEPENDENT Agent Have that a Captive Agent Doesn’t?

Buying insurance can be a confusing process–there are so many options! There’s a range of coverages, companies, even types of agents! Make sure you know what type of agent you are buying insurance from. That way, not only will you get the best customer service possible, you will also get the best insurance policy designed for your unique needs.

There are a couple different types of insurance agents: a captive agent, and an independent agent. The first step in deciding which one to use is knowing exactly what each of them is.

What exactly is a captive agent? In summary, a captive agent is an agent that works exclusively for one insurance company. The sole purpose of the agent is to increase sales and generate business for that one specific insurance company. An example of an agency with a large number of captive agents would be State Farm Insurance.

What are some advantages of working with a captive agent?

  • Captive agents often have the financial support of the company they are working for.. Therefore, the business has financial security.
  • Captive agents have the opportunity to develop a deep understanding for the specific products of the company they work for.

However, these advantages can also be seen in a negative light.

What are some disadvantages of working with a captive agent?

  • Captive agents are extremely limited. They must focus solely on the company at which they are employed.
  • Captive agents do not have the ability to quote your insurance policy with numerous carriers.

While these are great advantages, working with a captive agent does not compare to the benefits you’d receive while working with an independent agent.

What exactly is an independent agent? An independent agent is a business owner and is independent to work with numerous insurance carriers. The agents contract with multiple insurance companies in order to gain access to the insurance products.

What are the advantages of working with an independent agent?

  • Independent agents do not have to meet strict guidelines and quotas that captive agents do. They have the freedom to quote and bind any policy they can.
  • Independent agents are growing their own business. They have a vested interest in your insurance policy, and therefore, you are given the best service possible. They truly value your business, and want to protect your assets.

For the one buying insurance, there aren’t many disadvantages to working with an independent agent. Independent agents are here to serve you first.

By: KayLynn P.

Be Confidently Insured.

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