Captive or Independent Insurance Agents: What is the Best for you?

Difference between Captive vs Independent Insurance Agents

A captive agent is working exclusively for an insurance provider. Also, they will offer you just one quote. It is the most convenient method to acquire the coverage that you need. However, you are limited to what they are selling you. There is no other option for you. What they say is the information you get. You will not be able to compare the quotation and the coverage against other insurers. But you can always go online and do your research. You can decide whether to get the policy or look for alternatives. 

On the other hand, agents working for a particular insurer can offer you hundreds or more insurance providers options. Some think that it might also be a daunting task. The truth is that the agent will narrow down the choices for you. They can do it by asking several questions about your personal life and finances.

With captive agents, they will sell you the company’s policies. Also, some insurers design their policy that is more expensive than others. These companies are prolonged to react to new changes in the world of life insurance. Some may also add some hidden charges to their clients. Policies lack other features that you can find in other policies being offered by independent agents.

Independent agents can offer diverse choices and talk to you about your needs, wants, and current financial standing. They will provide you with several insurers with different coverage according to their understanding of your situation. Also, they will aid you in searching for the best plan that suits your individual needs. The agent basically will do all the talking as you need to share some personal information. One need not worry about sharing personal things as there is a confidentiality agreement. According to an experienced agent, there is no specific product that can fit into all scenarios.

Another essential thing to remember is the end of the policy. When the time comes that you want to renew the policy, the premium price can go up with the captive agent. Pricing changes every year, and by the time you need to continue, it will surely go up. Some agents also raise their rates over the years, and it will affect the pricing. Unfortunately, you do not have any options, but to get the policy they offer without any price comparison. Some might offer to cut some critical features of the coverage to lower down the price.

With an independent agent, they shop around for you to find the best deals. They will again do the same process and give you several great deals. Also, they will only offer choices that are within your needs and budget.