What is the difference between independent and captive insurance agents?

The difference between independent and captive insurance agents in Texas is the range of products they offer. Independent agents are agents who work with many different insurance carriers and are authorized to sell multiple lines of insurance from multiple companies. They often have access to multiple options and can offer clients multiple quotes, allowing the client to choose the best coverage for their needs. By contrast, captive agents are those who work exclusively with one insurance company rather than multiple companies. These agents are obligated to sell only the products of the company that they’re contracted to, limiting the options they can provide to the client. This can be more restrictive, but it does offer the advantage of having a thorough knowledge of the products they are offering. In Texas, these two types of agents are both licensed and regulated by the Texas Department of Insurance according to the state’s insurance laws. However, independent agents can offer more product diversity to their clients, while captive agents provide more in-depth knowledge about the products of the single insurer they represent.

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What is the difference between independent and captive insurance agents?

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