When it’s time to buy car insurance, you might wonder where to start. These days, you can purchase insurance online directly from an agent or some providers. But even if you decide you prefer to work with an agent, which type do you need to choose? Insurance agents, including prisoner-of-war agents, come in several types of types working with a single company, and have independent insurance agents representing multiple companies. So when is an independent insurance agent the right person to help you? Bankrate’s insurance editorial team has created this guide to review the pros and cons of using an independent insurance agent, allowing you to make the best choice for your insurance when you are purchasing new coverage.
What is an independent insurance agent?
Independent agents represent multiple insurance companies and offer a wide range of insurance products to meet the needs of consumers. In addition to car insurance, independent agents can also help you find life and homeowner insurance. It also offers similar insurance products to a wide range of companies. Meanwhile, a prisoner of war agents represent only one insurance company that only offers products offered by that particular company.
What are the benefits of an independent insurance agent?
Before you can find an independent agent to work with, you need to determine whether an independent or prisoner of war agents is right for you. Working with independent insurance and prisoner agents has several potential benefits.
For example, there is no additional cost when working with an independent agent. You can also save customers’ time by allowing multiple insurance companies to shop with agents. An independent agent may be able to find a better deal than what suits your insurance needs.
Ultimately, you need to determine whether these and other possible benefits are beneficial to you. Below are the main benefits of working with an independent insurance agent to consider:
Multiple quotes from different companies
One of the best benefits of working with an independent insurance agent is to buy insurance quotes. By accessing multiple companies, agents can see rates and coverage types with multiple companies at once.
When working with an independent agent, you should save time by simply providing the right information once. An independent insurance agent may know which companies have the qualities they are looking for. This saves time and potentially money.
Switching providers will allow your agent to stay with you
Once the policy appears for updates, contact an independent agent if you receive a fee increase. They can shop for competitive rates that will help you decide whether to stay with the same company or switch.
You can still stay with the same agent even if you switch insurance companies. This allows you to maintain your relationship with your independent insurance agent no matter which company you choose for your insurance contract.
Personalized customer service
While captive agents can also provide customer service to the strengths of a particular company, independent insurance agents can be motivated to work hard to maintain their business. This means answering questions about fees, compensation, claims, or submission requests on your behalf. If you experience problems with coverage, you can call an independent insurance agent to resolve the issue.
Keep your greatest interest in mind
Independent agents have a legal obligation to act ethically and place their best interests first. They will thoroughly review your individual situation and needs before exploring the wide range of options you can access to to find the best insurance company and product for you.
Small insurance companies
Independent insurance agents can work with all kinds of companies, from small local businesses to major national insurance companies such as Progressive and Nationwide. An independent agent may offer insurance estimates from small, unfamiliar companies, but they will still meet your needs and provide appropriate insurance coverage for your family.
What are the drawbacks of an independent insurance agent?
While there are several potential advantages to working with an independent insurance agent, there are also some possible drawbacks.
Policy knowledge
One of the benefits of working with prisoner agents rather than independent agents is that they are often experts in the companies they represent. This means they know the policy options, coverage, and the in and out of the discounts available, and how to make the best deal with the insurance company.
Independent insurance agents represent multiple companies, so they can grow a little thinly with regard to detailed knowledge.
Low agent support
Independent agents do not have the support of large insurance companies as well as prisoners of war. This may mean that there are fewer resources available to easily access and that it is necessary to be more proactive in finding training and support.
There are few large insurance companies
Several well-known companies, like State Farm, do not collaborate with independent agents. Therefore, independent agents can provide products and fees from multiple insurance companies, but may not have access to the particular company of interest.
Potential conflict of interest
An independent agent has a legal obligation to act in the best interest of a client, but if one insurance company pays a higher fee than another, the agent may have a conflict of interest. To act ethically, agents must present the advantages and disadvantages of both providers, regardless of the committee provided.
How to Find an Independent Insurance Agent
If you’re interested in working with an independent agent to buy insurance, there are a few ways to find one.
- Search online: You can find an independent insurance agent simply by searching online for “Independent Insurance Agents Near Me.”
- Seeking a referral: Consider asking your Friends, family, or co-workers for referrals to independent agents they work with.
- Use the IIABA directory. Independent Insurance Agents & Brokers of America (IIABA) maintains a database of licensed independent insurance agents. You can search for agents nearby using the Find Agent link on the website.
- Read reviews: Before selecting a local independent agent, we recommend checking ratings and reviews from other customers on websites such as Yelp and Google Maps.
How do I buy insurance through an independent agent?
If you don’t want to work with an independent agent or agent, there are other ways to buy insurance.
- Use a captive agent: If you like a particular insurance company, or you have other insurance through a particular company and want to bundle coverage, consider using a prisoner of war agents from that provider instead of an independent agent. The prisoner of war agents are well versed in the companies they represent and should be able to get the best rates for insurance from that company.
- Direct purchase: You can also purchase quotes and insurance directly through the insurance company, whether you call online or by calling.
