Why Choose an Independent Agency Over a Captive

Aggressive marketing campaigns and catchy slogans attract millions of customers to captive insurance agencies. A captive agency underwrites all of the insurance it sells. You may be in good hands with one national insurer and have a good neighbor with another captive agency. While there are some benefits of buying all of your insurance from the same insurer, you may be better off choosing to get the coverage you need from an independent agency.

All of the advertising for captive agencies costs a lot of money. While it is hard to generalize, those extra costs are often passed along to consumers in the form of higher premiums.

An independent insurance agency represents a number of different insurance companies. When you need to buy auto, life or any other type of insurance policy, an independent agent can match you up to the best insurer for your particular situation.

By being able to get quotes from a half-dozen or more insurance companies, your independent agent can get you the lowest rate on your policy. Every insurance agency, including captive agencies, have their own guidelines for determining rates. There is no single insurance company that has the lowest rates, best customer service and fairest policy for settling claims.

As an example, an independent insurance agency can shop around for auto insurance. One company may offer the best rates for drivers with perfect driving records, while another insurance company may have a policy of giving drivers with less than stellar driving records, the lowest rate. You do not get that option with a captive insurance agency.

Using an independent agency provides consumers with choices. In addition to getting you the lowest premium possible, when it comes time to renew your policy, your independent agent can check around and see if you should stay with your current insurer or switch to another insurance company.