What is the difference between direct and indirect insurance?

Direct and indirect insurance are two common types of insurance that are used in Rhode Island. Direct insurance is a type of insurance that is purchased directly from an insurance company or broker. This type of insurance allows individuals to pay for their coverage directly out of pocket. Direct insurance can be purchased for a variety of things such as homeowners, car, and medical insurance. Indirect insurance is a type of insurance that is purchased through another entity. This type of insurance is typically offered by employers, unions, or associations. Indirect insurance is not purchased directly from an insurance company or broker but is instead obtained through a third-party entity. This type of insurance may cover the same type of risks as direct insurance but the purchase of the coverage is made through another entity. In Rhode Island, both direct and indirect insurance can be used but there are certain situations where one type might not be as suitable for the situation. Direct insurance is typically more expensive than indirect insurance but, it can also offer coverage options that are not available through an indirect insurance policy. Additionally, direct insurance often provides coverage for more specific risks whereas indirect insurance is often more general in its coverage.

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What is the difference between direct and indirect insurance?

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