If you were shopping for a television, would you go to a store that only sold XYZ’s brand or would you shop at a store that sold XYZ’s brand as well as other manufacturers?
Would you buy insurance from an agent that only represents one specific company or one than can offer you insurance from several different companies?
This is the difference between the two types of insurance agents. They are referred to as Captive and Independent agents.
Captive agents sell insurance for one specific company. The one and only insurance company that they represent is typically a “name brand” company. You might even see their commercials during the Super Bowl.
Independent agents, on the other hand, sell insurance for several different companies. They can do the “shopping” for you by comparing the rates and coverage options of these companies. As a result you can make a better, informed decision.
Now that you know the difference between the two types of insurance agents, which one would you choose?