The Primary Benefits Of Working With An Independent Insurance Agency

Everyone knows how important getting the right insurance coverage can be for safeguarding your financial security.

There are a few different ways to find and purchase insurance policies, and working with an independent insurance agency is usually the best option. An independent agent can sell you policies from several insurance companies so you can find the best rates.

What Does an Independent Insurance Agency Do?

When you buy insurance through an agent, there are two major options—captive agents and independent agents. Insurance agents are licensed professionals who sell insurance policies.

Agents will give you personalized quotes for different types of insurance. They’ll also help you sign up for coverage and can assist if you ever need to file a claim. Depending on their company’s structure, they may work either on commission or for a fixed salary.

Captive Agent

A captive insurance agent works for one insurance company, either as an employee or an independent contractor. Captive agents may have more in-depth knowledge of their company’s insurance products, but the options they can offer you are limited to that one company.

Independent Agent

At an independent insurance agency, agents work with multiple companies. They’re licensed by the companies they represent, so they’re authorized to sell that insurer’s products. However, they’re not tied to a single insurer, so they can offer a wider selection of policy quotes. 

What Are Some Benefits of Independent Insurers?

Because an independent insurance agency works with multiple companies, your agent will be able to give you a variety of options so you can find the best value. Comparing rates and coverage is the best way to get a good deal on insurance. If you’re limited to a single company, you may find yourself paying more than you need to.

Working with an independent agent also gives you several advantages over buying insurance from the insurer directly. First, giving different companies your information to get quotes is time-consuming. With an independent agent, you’ll give the agent your details and they’ll get personalized quotes on your behalf.

They’ll also be familiar with the different companies in your area so they’ll be able to give you advice that you wouldn’t have been able to get elsewhere. For example, if one company offers great multi-policy discounts for auto insurance, your independent agent would be able to suggest that insurer if you have several drivers in your household. Finding this information on your own can be tricky.

An independent insurer can keep looking for the best coverage for your needs even after you’ve made an initial decision. If your situation changes or the market price shifts, your agent can help you decide whether you should update your coverage or switch providers.

Once you find an insurance agent you trust, you can continue working with them even if you decide to move to a different insurance company. If you used a captive agent, you’d need to form a new relationship with a new agent if you wanted to try another company.

As a licensed insurance professional, your independent agent will keep up with any new regulations or evolving norms for insurance coverage. This means they’ll be prepared to advise you on how to update your coverage to keep up with these changes.

Because they aren’t limited to a single company, independent insurance agents are in a better position to give you unbiased advice. If you talk to a captive agent, they’ll probably recommend the best policy that their company offers, even if that’s not the best policy for your needs. Working with several companies gives an independent agent a bigger pool of policy options to pick from. 

What Is the Role of an Independent Insurance Broker?

Unlike an agent who represents insurance companies, an insurance broker represents you. Brokers have deep and up-to-date knowledge about the insurance market, so they’re in a great position to give you advice about the coverage you need. Brokers are usually paid commissions based on the policies they sell.

Because they’re responsible for protecting their clients above all else, they’ll be able to give you more comprehensive advice than an agent would. Insurance agents can help you find the right coverage, but they’re primarily focused on helping you compare different quotes. Insurance brokers can give you objective advice on how to identify and protect against risk.

They can help you put together a strategy for how much coverage and what types of coverage you need. Since the broker isn’t connected with the insurance company directly, they’ll need to work with an agent or insurance company to complete the sale and confirm your insurance coverage.

Working with a broker can be a good idea if you have specific concerns about your liability exposure or want personalized risk management advice.

What’s in it for the Independent Agency?

As you can see, working with an independent agency provides a great benefit to the individual consumer, but it’s always good to understand that selling you a great policy helps the agency as well. Ultimately, an independent insurance agency makes the most money when its customers are happy with their policies.

This sets up a win-win scenario for you and your independent agent. For example, if you buy a life insurance policy, your agent will receive a commission. When you renew your policy, your agent will get another renewal commission. This means that it’s also in the agent’s best interest to find policies that their clients will like and thus, keep. In fact, making their clients happy is the best way for agents to secure a steady source of income.

How Can I Get a Better Rate Than I’m Getting Now?

If you feel like you’re paying too much for insurance, or if you’re simply trying to reduce your bills, an independent insurance agency can help. Your agent will show you policy options for several companies so you can find a better rate. Contact ALINK today to discuss your insurance needs.

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