What is the difference between direct and indirect insurance?

Direct insurance is when an individual agrees to an insurance policy with an insurance company in a direct relationship. This type of insurance can be purchased from an agent face-to-face, over the phone, or by buying a policy online from the insurance company itself. The individual is usually required to provide some personal information, such as their name, address, and Social Security number, in order to purchase the policy. Indirect insurance, on the other hand, is often done through an insurance broker, who works as a middleman between the insurance company and the individual. The broker will purchase insurance policies from various insurance companies for their clients and then resell them to the individuals who need them. The broker will generally look for the best policy at the best price for the individual. Additionally, they will often offer more tailored coverage than what is typically available from the insurance company itself. Overall, direct insurance is when an individual buys a policy from the insurance company itself, while indirect insurance is when an individual buys a policy from an insurance broker. Direct insurance is typically simpler and more straightforward, but may not always be the best fit for an individual. Indirect insurance is usually more tailored to an individual’s specific needs, but may require more research and cost more for the individual.

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What is the difference between direct and indirect insurance?

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