Is Dealing with Independent Agents Different from Dealing with Captive Agents?

 In Becoming an independent insurance agent, Blog

When it’s time to talk about your insurance and make decisions that best protect your interests, you have several alternatives but if you’re thinking of talking to an agent there are two options: going to a captive agent or to an independent agent. If you’re unsure about what each can offer, it’s best to dig a little more into this topic before you decide who to choose.

What Type of Agent Do You need for Your Insurance?

Decisions, decisions, decisions. Everything comes down that. There are many different ways to buy insurance. You can do it online, over the phone, or through an agent. An agent gives you a more personalized type of service and makes it easier to address your questions. You could go with a captive agent or an independent agent. But how do you know which is best for you?

Captive Independent
Represents a single insurance company and can sell only products from that company Represents multiple insurance companies and can offer a wider variety of insurance products

 

In the previous chart, you can see the primary difference between a captive agent and an independent agent. It might sound simple but there is more to it.

Choosing Between a Captive and an Independent Insurance Agent

Captive Agent

Captive agents work for one insurance company, whether they are full-time employees or contractors. This means they can only offer you insurance products from that one company. They might be very knowledgeable about the products they offer but their knowledge of other products in the market is limited. The company which employs them has goals of their own and might require agents to hit certain sales quotas, which might lead agents to sell products that contribute to meeting their own needs rather than addressing the needs of their clients. Captive agents don’t usually maintain long-term relationships with their clients, so everytime you need to revisit your insurance needs, you might be talking to a different person.

Independent Agent

Independent agents are free to work with many carriers to offer their clients a wider array of products to best meet their insurance needs. An independent broker or agent has more extensive knowledge of the products in the market, which allows them to objectively evaluate the different options available and also find the best prices for you. When you find an independent agent you trust, you have the opportunity to maintain that relationship, so that your insurance decisions are advised by the person who knows your track record and identifies with your needs.

Network of independent agents in Colorado, Utah, and Arizona

We are all passionate about helping people and finding the best insurance for each client.

Affordable American Insurance is an independent insurance company that strives to provide you with the best insurance options to protect your interests at the best prices possible. Contact an independent AAI agent in your area today!

 

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