As we all know, having the right insurance policy in place is very important. Not only does it give you a peace of mind, but it also protects you from a lot of problems that could arise, were you to get into a car accident, have property damage, have someone injured on your company’s property… the list really does go on and on, which is why it is vital to make sure that you have the proper coverage in place before these things happen.
We don’t want you in over your head in debt and lawsuits without anyone to help you out, and we’re sure that you don’t want that either. With all of this being said, it is also important to realize the different options that you have, not only in the coverage that you choose, but in the insurance agent/agency that you decide to work with. There are two different types, captive and independent insurance agents, and we’re breaking them down for you so that you can better understand which will be the best fit for you personally. Keep reading to find out which vital things you need to consider when choosing between a captive agent and an independent agent.
What’s the difference?
Before you even begin choosing between a captive agent and an independent agent, it’s important to know what these terms mean.
A Captive Agent is an insurance agent that works with one insurance company. They work for that company and that company alone. This can sometimes limit your options, as you’ll read more about below. Although captive agents can only offer you one company’s coverage, they do have an in-depth knowledge of this company and can give you a lot of information on the coverage offered.
An Independent Agent/Agency is not tied to one particular insurance company and can therefore offer you different types of coverage from different insurance companies. This will typically give you access to the best rates, as you can choose between multiple policies.
The choices that you will have as a customer is one of the most important things that you should think of when choosing between a captive agent and an independent agent. One of the biggest differences between an independent insurance agent and a captive insurance agent is the fact that an independent agent can offer you more choices when it comes to your insurance coverage. If you’re looking to get the best bang for your buck, having the ability to shop around will be huge. If this is the case for you, you’ll want to go with an independent agent or agency versus going with a captive agent so that you can choose the lowest priced option/ the best deal. If having choices is important to you, it is very important to realize which agent/agency can give this to you.
Knowledge should definitely be a factor that you consider when choosing between a captive agent and an independent agent. If one of your top priorities is the knowledge that your agent has about a specific type of coverage, this may lead you towards a captive agent. Captive agents can only offer you insurance policies from the company that they work for, which means that they only work with that company. This can be a pro and a con.
It can be a pro because the fact that they only work with the one company means that they tend to know a lot about that company. They probably have a very in-depth knowledge of how the company operates and what is and isn’t included in their coverage. This is great for those who are not very insurance-savvy. One con, though, is that by only working with this one company, captive agents only know about their coverage and since that coverage is all that they’re able to offer, you won’t necessarily be told of other options that could be a better fit for you and your family. The agent probably won’t try to tell you about a policy that they’re not able to sell you, even though it could end up being a better option.
But what it really comes down to is this…
In the end, it is all about what works best for you and what you are wanting from both your agent and your policy. Knowing what captive agents and independent agents are by definition is the first step in choosing between a captive agent and an independent agent, but after that it is all personal preference. Whether you want someone who can give you in-depth information about one plan and have a “one-and-done” insurance shopping experience, or you want to be able to choose your plan, saving you money and giving you an endless amount of options.
So now it’s time to take the next step
Now that you’re all set to get out there and get started choosing between a captive agent and an independent agent, we want to tell you a little bit about how we can help! Here at Cobos Insurance, we offer you many different options, giving you the lowest prices available while also informing you about the coverage options so that you are able to find your personal best fit out of numerous policy options. We know that for most people, the freedom to choose their own policy is huge, and we support that by offering as many options as we are able to offer. Our insurance agents will walk with you through the entire process, guiding you along. Call or email us today to get in touch! The sooner you get your policy all set up, the sooner you’ll have that peace of mind that comes from knowing you’re in good hands.
Contact us today!