Purchasing any type of insurance is serious business. Unlike many other necessities of life, buying insurance takes a lot of time, energy, and thought. Ensuring that you have the right coverage and ample limits should be a priority. And when you do decide what insurance you want to purchase, it’s essential to know that the person or entity you’re buying it from is reliable and has your best interest at heart.
For this reason, it’s important to consider buying your insurance from an independent agent as opposed to buying it from a captive agent or direct from an insurance company.
Why are independent agents better than captive agents and buying direct? That’s what we’ll be delving into in this blog post. Let’s begin.
The Big 3: How You Buy Insurance Matters
While you may think that it’s your insurance policy itself that matters most, it’s really how you purchase your insurance that’s important. There are three main ways to buy insurance:
Direct from the insurance agency
If you purchase insurance direct from an insurance agency or company without using an agent, you’re probably working with a company like Esurance or Geico. Today, most of these companies operate solely online. You simply get online yourself, choose the plan you want, fill out a bit of paperwork, and you’ve got your policy.
From a captive agent
Captive agents are technically independent insurance agents, but they only work for one company. For example, you might work with a State Farm captive agent. He or she will only sell State Farm insurance, but within the State Farm framework, they’ll work with you one-on-one to help you find the best policy for your needs.
From an independent agent
Independent agents are like captive agents in that they are a go-between between you and the insurance agency, helping you find the best policies for your needs. The difference is that they do not work for just one insurance company. Instead, they represent many companies such as Safeco, Hartford, or Travelers.
Why Buying From an Independent Agent Is Beneficial
No matter your age, location, occupation, or background, you need insurance. Chances are, you need many types of insurance. For example, you’ll need insurance for your vehicle, insurance for your home, life insurance, health insurance, and possibly several other types of insurance as well. When you work with an independent agent, you can get all of these insurance policies at one time — they’ll handle them all.
Being able to go to a one-stop shop location for all of your insurance is extremely useful. Most importantly, it cuts down on your time and energy. But working with independent insurance agency has other perks as well. Most notably, you’ll know that your independent agent will be working for you. They’ll be providing you with some choices based on your unique needs.
And even if you end up not liking one type of insurance that you initially purchase, this doesn’t mean that you have to change agents. You simply have to tell your agent that you want something new, and they’ll help you find it. While independent agents do earn commissions, the cost of their assistance will not necessarily be higher than if you were to get your insurance directly from an insurance company.
Already working with an independent agent? Be sure to tell your friends. It’s a way of purchasing insurance that not many people know about.
All Arizona Insurance, Inc. is here to help. Call us anytime or stop in to learn about our policies.