Almost any major life event or purchase is going to require the need for new or evolving insurance policies. You need insurance when you relocate, expand your family, buy a new home, lease a car, or even start a business.
As you search for an insurance policy, you’ll likely wonder, where is the best place to purchase my policy? There are two main types of insurance agencies: captive and independent. There are pros and cons to choosing either insurance agency options. An independent agency can offer flexible policy options while a captive agency uses the standard of a single insurance company. Overall, the right insurance agency for you will depend on your insurance needs.
Keep reading to learn what an independent insurance agency is, the benefits of an independent insurance agency and choosing captive vs. independent insurance agents.
What to Know About Independent Insurance Agents
What is an Independent Insurance Agency?
Generally, an insurance agent is a representative that is able to manage and assist with your policy. This is true for independent insurance agents and captive agents. Being an “independent” simply means that they are not under contract with a particular insurance provider.
An independent insurance agency works with multiple insurers to create or manage policies. This is not to be confused with an insurance broker, who also works with more than one insurance company but doesn’t provide any services once the policy has been purchased.
Even though the agent represents several insurers, they are able to offer a more personalized customer experience. In addition to setting up your insurance policy, an independent agent will also help you with claims and other matters. While a captive insurance agency can offer these services, they have less time to dedicate to each customer.
What’s the Difference Between Captive vs. Independent Insurance Agent?
You may not have heard the term captive insurance agency but you have likely seen one. Captive agents are those that you see most frequently. When you see an agent’s name alongside a national insurer, such as Allstate, chances are they are a captive agent.
The main difference between captive and independent agents is captive agents are representing a specific insurance company. A captive agent is contracted to work for that specific company, meaning they only sell that company’s policies. Conversely, an independent insurance agent is not contracted to work for a single insurer but rather, multiple insurers. This allows an independent agent more flexibility when offering a customer insurance policies.
Benefits of Choosing an Independent Insurance Agent
Independent Insurance Agents Offer More Customized Options
Like insurance brokers, independent insurance agents offer policies from multiple insurance companies. What is an independent insurance agency going to do for you that an insurance brokerage wouldn’t? An independent insurance agency is able to offer you a comprehensive and customized package that meets your individual needs. This flexibility not only impacts the types of policies a customer can choose but also how affordable those policies are.
Independent Insurance Agencies are Small Businesses
Because independent insurance agents are small businesses themselves, they are able to empathize with their self-employed and small business customers. Many independent insurance agents use their first-hand business experience to aid customers who are starting their own businesses.
Independent Insurance Agents Process Claims More Efficiently
An Insurance Information Institute’s study showed that there has been a recent boost in policyholder satisfaction in claims resolution. The areas that saw the most improvement in satisfaction ratings were the availability and knowledge of representatives, efficiency of addressing related services at the time of initial claim, and fast processing with frequent follow-ups.
Find the Right Insurance Agency For You
Are you looking for the best insurance coverage and representation for your home or business? Insura is an independent insurance agency offering customized services to Reynoldsburg and other Ohio communities. At Insura, we are passionate about providing each customer with a personalized insurance experience.
The Insura team offers various types of commercial and personal insurance policies. Some of our policies include business owners insurance, worker’s compensation, renters insurance and flood insurance.
Insura keeps your needs first when choosing your insurance policy. Because Insura is not contracted to a single insurer, we choose a carrier based on your unique requirements.
Need individualized insurance coverage for your home or business needs? Contact our team at Insura today for prompt answers to your insurance policy questions and requests.