There are so many aspects of life that require having a different type of insurance. Health care requires one type of insurance, death requires another. There are specific insurances for cars, houses, boats, motorcycles, even pets. Companies have to carry certain insurance policies for their employees, events have to have their own type of insurance. The list goes on and on, seemingly without end. Many people do not stop to think about many of these types of insurance until they need to find a company to purchase a policy through. When it comes to this point, it is often difficult to know where or how to begin. Many people simply choose an agency which will assign an agent to you. While this is certainly a viable option, there is another that often gets overlooked. This is the option of hiring an independent insurance agent. If you are not familiar with this term and would like to learn more, this is the article for you. Here we will explore all of the difference between independent and captive insurance agents and how to choose which one is right for you. Particularly if you are looking for Woodbury Insurance agents.
What is a company agent and why are they referred to as captive agents? The short answer is that a company agent works solely for a specific company and can only give you information on policies from that company. They are called captive agents because of their limitations. They only have the knowledge and abilities to deal with the company they work for, they are captive to their company so to speak. They have the ability to analyze a new patron’s credentials and recommend a course of action and a specific policy based on what that company offers.
Now, the question remains, what is an independent insurance agent and how are they different from a company agent? An independent agent is just that, independent. They are not bound to one company. Therefore, they can shop around for you and determine what is truly the best deal and the best policy for you and your circumstances. There is a great deal more freedom for independent agents than for company agents. When you go through an independent agent, you are far more likely to find a policy that truly meets your needs at a price you can afford instead of being stuck with a handful of possibilities.
Now, onto the really important question. How do you choose whether to use an independent agent or a company agent? What are the pros and cons of each choice? These, along with a few other questions are incredibly important. This is why the next topic of discussion is the pros and cons of purchasing insurance through an independent agent.
Pro – You will have a much more personalized experience when you go through an independent insurance agent. When you go through a company agent, they often have deadlines and quotas to meet. Therefore, they tend to rush you to a decision and do not always give all concerns the proper amount of time and consideration. Sometimes this works out fine, but as often as not, it goes very badly. This is not to say that it is bad or wrong to go through a company agent, only that there is a great deal more freedom and choice when you go to an independent agent. Also, an independent agent will not be biased to a certain company or policy. This will ensure that you end up with the best option available in your area without having to worry about trying to find the best company on your own.
Pro – Saving money is never a bad thing, especially when it comes to necessary expenses. Insurance is one incredibly necessary expense, so saving money throughout the process is always ideal. An independent insurance agent is not loyal to a single insurance company. What this means for you, the consumer, is that they will search to find the best-valued policy from a wide variety of companies rather than try to push one of only a handful of possibilities. If you have already found the best company and the best prices offered in your location, this particular point will not make much difference. However, for those in the midst of their search, this is a big deciding factor.
Con – Many times, larger companies will not work with independent agents. What this means for you is that you may find yourself presented with a list of companies that you have never even heard of. Little known companies are not inherently bad, but they often can’t offer as much as a larger company. This may mean less coverage, fewer options, and no big-name backing. While there may be a few benefits of using a smaller unknown company, there are quite a few negatives.
Con – Using an independent agent may result in less stability than using a company agent. Generally speaking, big insurance companies place a great deal of backing and help with each of their captive agents. This means more training, more resources, Â more overall support. Without the added help, support, and resources, an independent agent risks having to go out of business. It can be taxing, financially speaking for an independent agent to stay in the best terms. Sometimes, the out of pocket expenses are too much, sometimes they can’t receive the extra training they need on time, the list goes on and on.
Like anything, hiring an independent insurance agent, no matter what area you live in will have both positives and negatives. There is no right or wrong when it comes to choosing a captive agent or an independent one. There is only what is best for you, your needs, and your situation. The best thing to do is weigh your options based on the potential choices you have as well as certain criteria that you should determine ahead of time. Once you have made your decision, or even as you are making it, t is vital that you remember one thing, always. This decision is not set in stone, it can be changed if things end up not working out the way that you had hoped they would.
