Types of insurance agents: a basic guide

There are many times in your life when you will need to purchase insurance. Some of those times are pretty straightforward, and you can easily compare plans on your own and make an informed decision. However, there are also times when choosing the right plan, or even figuring out what types of plans are available, isn’t so clear cut. For example, when you buy insurance for your small business, when you buy home insurance, or when you buy life insurance, you are making some very important decisions about a very complex issue.

When you’re shopping for insurance that could affect your life in such a serious way, it’s a good idea to find an insurance agent to help you decide on the right policy for you. There are three basic types of insurance professionals who can be of help:

independent insurance agent

An independent insurance agent is an agent who is not employed by a single insurance company. Typically, the agent will work with a select number of companies, helping clients choose policies from one of them. This can be helpful because policies from different insurance companies may have different strengths and weaknesses, which the agent is familiar with. An independent agent is a good option if you’re not sure which company you want to go with, but know that the price ranges and coverages they offer will be comparable to each other. In essence, you just need the agent to make sure you get the best deal.

captive insurance agent

A captive insurance agent is one who works only for a specific company. Obviously, this type of agent is the right choice when you already know you want a policy from that insurance company. These agents will help you compare different policies to determine what coverage and price is right for you. They’ll just be policies from the same company, that’s all. Sometimes customers already have one type of insurance with a particular company and prefer to purchase new policies from the same company.

Insurance broker

Insurance brokers are not agents in the sense that they do not sell policies directly. Working with insurance brokers is generally reserved for the most complex insurance needs. Insurance brokers contact agents from many different insurance companies to determine what policies are available, how much they cost, and what type of coverage you can expect to receive. An insurance broker can even negotiate with insurance agents to lower the price.

Another reason you may want to use an insurance broker is if you want a highly personalized insurance policy. If you’re looking for an insurance agency that has policies that can be tailored to your exact needs, an insurance broker could be a helpful resource. However, more and more insurance agencies recognize that there is a high demand for personalized policies. As a result, you can find an agency that offers such policies relatively easily, wherever you are.