As a consumer looking for insurance, it is in your best interest to find the absolute best policies with reasonably-priced premiums, comprehensive coverage, and ample limits. In order to achieve these goals, you can purchase insurance in three basic ways.
Buying Insurance: 3 Options
- Direct
Buying direct means you don’t use an insurance agent. Popular insurance companies who allow consumers to buy direct include Geico and Esurance.
Generally speaking, to buy direct, you go online to an insurance company’s website, create a profile, list the types of insurance and coverage you’re looking for, and choose a plan on your own. In many cases, you can also phone the company directly to buy a plan.
- With an Captive Agent
Established, professionally-licensed captive agents are local and are contracted with one insurance provider (for example, Farmers Insurance). Practically-speaking, these professionals work for themselves, but in essence, they are employed by the insurance company they work for.
In this way, they cannot sell insurance from any other provider, and when you ask for quotes as a consumer, you’ll only receive prices from their parent provider. Sometimes, this can skew the information you’re receiving, and you may wind up with a plan you don’t like or one with premiums that are too high.
The good thing about captive agents is that they’re local, and they can be quite instrumental when it comes to making a claim.
- With an Independent Agent
Independent agents are like captive agents, but there’s one significant difference: They can sell insurance from an array of providers (instead of just one). As such, independent agents are solely focused on your specific insurance needs.
Like captive agents, they are local, they’ll listen to your requests, and they’ll provide you with an array of quotes on new plans. They’ll also help you make claims when you need to.
The Recommended Way to Purchase Insurance
Not all consumers are alike, and everyone has different needs. But one thing is for sure: Everyone wants better insurance coverage and lower premiums.
The best way to get it? Go with an independent agent in your area.
As you’ve probably already surmised from the above information, independent agents provide the most benefits when it comes to getting great rates, excellent service, and ample limits on your insurance policies. They’ll help you get a better value by providing you with a wide range of quotes and coverage options from a variety of providers.
Worried about paying their commission? Don’t be.
Independent agents receive their commission from the insurance company you purchase from. And even though this may ultimately increase your insurance costs slightly at first, with the value you’ll be getting, you’ll always make out on top in the end. It’s a win-win for everyone.
Why Don’t More People Go With Independent Agents?
There’s a lot of misconceptions out there about independent agents. First of all, they fell out of popularity when insurance companies started selling their policies directly to the consumer. Furthermore, many people grandly overestimate the extra amount they’ll have to pay to work with an independent insurance agent.
In the end, if you already work with an independent agent and appreciate their extraordinary services, be sure to tell someone else about it! Others may not know the value they’re missing when they buy direct or only choose to work with a captive agent.
If you are not yet working with an independent agent, be sure to give G&L Insurance a call today. Our skilled and knowledgeable agents would be happy to sit down with you to discuss your insurance needs.
