Who doesn’t like ice cream?
Well Insurance isn’t ice cream but it serves as a great metaphor for comparing an independent insurance agent to a captive insurance agent.
Imagine going to an ice cream shop that was only allowed to sell one flavor of ice cream at a price dictated by one corporate office. Now imagine going to an ice cream shop that offers multiple flavors at different price points. Although simplistic, that is the difference between a captive insurance agent and an independent insurance agent.
An Independent Insurance Agency is, just as it says, independent. Independent of any one insurance carrier and is paid by commission by all the carriers that agent represents. The independent agent can offer multiple policy and pricing options from a multitude of insurance companies and tailored to the needs of each individual client. If your rates go up your independent agent can shop your insurance around and see if there are better coverage and pricing options from a different insurance carrier. Having multiple companies to pick from allows the agent to look out for your best interest.
A Captive Insurance Agent works for, and is paid by a single insurance company. In a way the agent is held “captive” to one insurance carrier. The agent is limited to place business with only that company eliminating the opportunity to offer different product and pricing option. When the customer’s rates increase there is very little the captive agent can do to reduce the customer’s cost without eliminating or reducing coverage protection.
Give us a call today and let us find the best policy options available for you!