What is the difference between independent and captive insurance agents?

The difference between independent and captive insurance agents is that an independent agent is free to work with many different insurers to offer the best policies and prices to his or her customers, while a captive agent is employed and managed by a single insurer. Independent agents normally have access to many different insurance companies and can shop around for the best policies from different companies. This type of agent is typically seen as more customer-focused as they are able to offer a variety of options to their clients. On the other hand, captive agents are generally employed and managed by a single insurance company. This means they do not have access to competing policies and prices, so their offerings are limited to the products offered by their insurer. Independent agents are often seen as better for customers in California, as they can source the best policies available on the market and offer unbiased advice. Captive agents are often seen as more profits-focused, as they are tied to a single company and incentivized to sell products from that specific insurer. Overall, the main difference between independent and captive insurance agents is that one has access to multiple insurers, while the other is restricted to the products of a single insurer. The type of agent a customer chooses can have a huge impact on the cost and quality of coverage they receive.

Related FAQs

How do insurance regulations vary by state?
What are the responsibilities of an insurance adjuster?
What is the difference between an insurance policy and an insurance contract?
What is an umbrella policy?
How can I protect myself from financial losses due to natural disasters?
What is an insurance broker?
How do insurance rate determinations take place?
What is the difference between a contract and an insurance policy?
What is the statute of limitations for insurance claims?
What are the legal requirements for filing an insurance claim?

What is the difference between independent and captive insurance agents?

Related FAQs

Related Blog Posts