When you’re shopping for insurance, knowing the different types of insurance agents is important as part of understanding whom you should work with.
There are two kinds of insurance agents — captive
(who represents one insurance company) and independent
(also known as an insurance broker).
Many online insurance companies, like State Farm, Allstate, and Liberty Mutual depend exclusively on captive agents, but some like GEICO and Progressive rely on a mixture of captives and independents.
Both types of agents can provide the kind of quality expertise you need to make one of life’s important financial decisions. But there are some big differences between the two.
Captive agents
Captive agents work directly for a single insurance provider and are limited to the products of that company. For example, if you call a captive agent who works for State Farm, he or she will market and try to sell you only State Farm products. How they get paid is set by their insurance company, and they are paid by that one company.
On the plus side, these agents are experts in what their insurance companies have to offer. But they cannot help a client who doesn’t need or qualify for their company’s products. And captive agents usually have quotas to hit to keep their job and earn bonuses. Although that’s not terribly different from independent agents, you might feel a bit more pressure to buy car insurance from a captive agent when all you really want is term life.
Independent agents
Independent agents, meanwhile, work for themselves and not any one insurance company. They sell policies from a variety of insurance companies, not just one, there is no increase in the premium to work with an independent insurance agent, and make most of their money through sales commissions and bonuses from the carriers.
Independent agents can save you some time by getting insurance quotes from a few different insurers, we have 11 insurance carriers that we can provide you with an insurance quote.
Which is best?
The type of insurance coverage you choose depends on your needs and your budget.
If you’re looking for multiple quotes from different companies, an independent insurance agent probably is the way to go. Vargas & Vargas Insurance can save you time and money, reach our agents at 617-298-0655.
If You Sold Your Car, What Should You Do With The License Plates? | Blog | Vargas & Vargas Insurance
In Massachusetts, all drivers are required to register their vehicles and purchase compulsory auto insurance coverage. To ensure that drivers comply with state insurance laws, drivers must turn in their license plates before canceling their auto insurance policy. And if you are transferring your Vehicle’s ownership, it is your responsibility to properly register and insure the car before driving on state roads. Leaving your license plate on the car could make you liable for the actions of another driver.
A personal umbrella policy provides additional liability protection beyond the liability limits that you now carry on your home, renters, or condo insurance and auto insurance. If you are sued and exhaust your existing liability coverage, the umbrella policy will take care of the remainder up to the limit you selected.
