Nearly every type of insurance available can be sold through three different means. Exactly which of these means you choose makes a huge difference in the value of coverage and monthly premiums you’ll receive.
Here are the three main ways you can purchase insurance:
1) With a captive agent.
Captive agents are professionally licensed independent insurance agents who work locally. In Springfield, you probably already know of several captive agents.
Go to them, and they’ll sit down with you in their office to discuss your insurance needs. Later, they’ll come back with several plan options that will hopefully fulfill what you’re looking for. When you buy from a captive agent, they earn a commission on every sale.
The key thing to note about these professionals is that they only work for one insurance company or provider. This differs with the other type of insurance agent available and the second way you can purchase insurance.
2). With an independent agent.
Even though captive agents are technically independent contractors in that they own their businesses and work for themselves, “independent agents” are actually independent. This is for the sole reason that they don’t work for only one single insurance provider. Instead, they work for an array of insurance providers, which enables them to pass on this flexibility and range of choice to their clients. Independent agents are also local.
3). Direct from the insurance provider.
Lastly, you can also avoid working with captive or independent agents and purchase your insurance “direct.” Direct purchase means you go online to the insurance company’s website yourself (or call by phone) and pick the plan that’s right for you. Direct purchase insurance seems to be a low-cost way to get a strong insurance plan but think again. There are several drawbacks from purchasing your insurance direct from the provider, and we’ll go over these below.
Buying Direct Vs. Buying With an Agent: Which Way’s Better?
No matter which way you look at it, you’re always going to save more when you work with an agent — and in particular, an independent agent.
While buying direct from an insurance provider may seem like the best way to save money, you’re probably not getting a great deal when you buy direct because you may be purchasing a plan that doesn’t provide enough coverage or ample limits.
On the other hand, when you work with an agent, you have someone advocating for you whose knowledge of insurance and various policy options far surpasses your own. Moreover, even though your agent will receive a commission (from the insurance company), with the savings you’ll accrue from finding a better, more full coverage plan, you’ll inevitably save much more.
What makes an independent agent even better than a captive agent?
Captive agents can only show you policies from the company they work for. On the other hand, an independent agent can show you policies from a wide range of companies. They don’t have allegiance to one single company, so they’ll give you accurate and honest advice on choosing the best plan. Furthermore, even if you decide to switch policies, you can stick with your independent agent and simply find another policy that better meets your needs.
Looking for Insurance?
If you’re working with an independent insurance agency already, it’s a good idea to tell your friends and family about the value of independent agents. Many people are unaware of this option.
If you’re still on the lookout for an insurance agent, Tagge Insurance is always here to help. Stop by today to learn about our policies, or feel free to give us a call at your convenience.
