What is the difference between independent and captive insurance agents?

The difference between independent and captive insurance agents in Maryland is that independent agents are not tied to any particular insurance company and represent several companies simultaneously. Captive agents, on the other hand, represent only one insurance company and must adhere to that company’s policies and products. For instance, a captive agent working for State Farm must offer only State Farm products, while an independent agent may offer insurance from State Farm as well as other companies. An independent agent typically represents more than one insurer and his or her clients have the advantage of being able to comparison shop and get the best policy for their needs. Independent insurance agents also tend to have more experience and resources than a captive agent. They know their field in-depth, so they can provide more comprehensive advice to their clients. They also have ready access to multiple companies, so they can quickly find a policy that better meets a customer’s specific needs. Due to the nature of their services, independent agents usually earn more in commissions than captive agents. This means they are more likely to invest the time and effort into finding the right policy for their customer. However, captive agents have the advantage of loyalty discounts and other benefits from working with one company only.

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What is the difference between independent and captive insurance agents?

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