A modern, captive agent for mobile phones.
Shopping for the many types of property and casualty insurance, one will run across several different ways to contact insurance quotes. The main ways to obtain various quotes are through a website, through the company directly, and through a local agency.
There are three main types of insurance agents: Captive Agents, Direct Captive Agents, and Independent/Broker Agents. Every type has certain advantages and or limitations when it comes to making the best deal. Here is why:
Captive agents own their own office and business and are appointed through one company. They only sell the one company’s products. This would be like an Allstate agency, State Farm Agent, or a Farmer’s Insurance Agency.
A captive direct agent is an agent who works directly for the company and sells only their products and they are accessed through calling the insurance company’s main toll-free phone number.
An independent or broker agent has their own locally owned business and is appointed with many different companies. Rather than only having one company’s products to sell, he or she would have a wide variety of companies to choose from and can provide numerous quotes finding you the best deal for your situation. They do not work for any one specific insurance company. Some may feel that this means a captive agent works for the insurance company and the broker/independent agent works for the customer.
While limited in their products, most captive agents will seek to find the best combination of products available to them to best serve their customers. The difference between broker and captive is that the broker has quite a few more options they can present a client or potential client.
Depending on what kind of product you are looking for or what kinds of insurance tasks you are trying to complete will determine which type of agent you will find most helpful.
1. Looking Only For Cheap Auto Insurance?
If the only item you have to insure is your vehicle and you are looking for the cheapest possible price, the local independent broker agent will probably be your best option to start. They will have numerous companies with which to submit your personal information and will have a number of options to provide for choices.
an Existing Insurance Product With a Main Insurer?
If you are with a top insurance company for your auto and you have need of home insurance or other insurance products, it makes sense to go speak to a local captive agent for the company you currently have on auto. This will give you the best discounts because you will be pricing multiple products with the same company, providing up to a 25% discount.
3. At the Dealership and Need Insurance Now?
If you are buying a car and get to the point of signing paperwork and you realize you need to get insurance before driving off the lot, you could use either a broker agent during the day for a fast look at several options, but if you are buying a car after the usual 5 o’clock closing time for agencies, calling a direct captive agent will probably be best. You might need to make a few phone calls to find the best deal, but you can get the most accurate quotes with top companies this way.
If you are buying your first car and you currently are registered as a driver on your parent’s policy, you will want to contact that company you are with directly so that you have the opportunity to have the best possible and cheapest quote. Often by doing a “spin-off” policy from your parents you get to keep many of the same discounts and benefits that you currently enjoy on your parent’s policy.
Whether you relate to any of the above scenarios or not, it’s always best to check out all options when you are shopping for the best policy at the best price. You will have many options when you choose to try all three methods, not to mention you will learn a lot from each. And by the way, with CarInsuranceCalculator.info’s form you can get up to eight quotes in just one go.
Image: Statefarm/Flickr.
