Do insurance terms sound like a foreign language to you?

If you plan to sign up for personal or business coverage soon, you may have more questions than answers. With so many different plans and policies available, it can take time to know where to begin. 

This is where an experienced insurance agent comes in. The agent will show you your options, then help you choose the one that best suits your needs. 

There are two main categories in this realm: captive agents and independent agents. Today, we’re breaking down the differences between captive vs. independent insurance agent services and sharing why the latter is preferred.

1. Access to More Options

An independent insurance agent works with many insurance companies and isn’t partial to any particular one. Conversely, a captive agent only works for one company. 

In most cases, captive agents are under a contract with a designated insurance carrier, limiting the number of insurance products they can offer clients. You don’t have such limits when you work with an independent agent. 

An independent insurance agent can show you all insurance plans, making comparing your options more accessible. When you know everything available, you are more likely to get the best coverage at the lowest price. 

Some of the benefits of broader accessibility include:

• More comprehensive coverage
• Less restrictive policies 

In addition, an independent agent can help you cover any potential gaps in your coverage. They know which new policies will work with the ones you already have in place so that you can avoid costly and complicated interruptions. 

2. Direct Customer Support

Captive agents are trained in customer service and support. However, they’re often tied to their employer’s strict requirements, which can limit their availability to help. 

On the other hand, independent insurance agents are focused on working for the client, not any particular company. They’ll always have your best interest in mind. 

This is true whether you’re signing up for a new policy or filing a claim. The insurance claims process can be complicated for policyholders, especially with the industry jargon involved. An independent agent will know precisely how to work on your behalf, improving your chances of receiving a fair settlement. 

3. Money-Saving Options

An independent agent isn’t tied to one company, so they can help you shop around to find the best deals. Whether you’re searching for homeowners insurance or business liability insurance, they’ll have access to the best rates from some of the top US insurance companies. 

Once you know the policy coverage you need, you can compare different plans and prices. This simple step is often enough to save clients significant money. 

To conserve costs even more, ask your agent about any multi-policy discounts available, allowing you to bundle and save. They can also share different insurance policies that work together to create seamless, affordable coverage. 

4. Impartial Support and Advice

When you work with a captive agent who only sells one company’s insurance product, it can take time to understand everything available to you. This is because those agents only have access to their employer’s solutions. 

Meanwhile, independent agents work for myriad companies that provide various policy types. In addition to helping you secure the best deal, they’ll also be able to speak with you unbiasedly and impartially. 

5. All Options in One Place

When shopping for insurance, clients often require many different types of coverage. For instance, individuals who need personal insurance might require any of the following:

• Auto Insurance
• Coastal Home Insurance 
• Condo Insurance 
• Homeowners Insurance
• Flood Insurance 
• Vacant Home Insurance
• Wedding Insurance
• Umbrella Insurance 
• Life Insurance
• Health Insurance

If you work with a captive agent, their insurance company may not have these policies. Alternatively, an independent agent can serve as a one-stop shop for all of your insurance needs, helping you choose policies from providers as required. 

On the commercial side, they can also present you with many options designed to protect your workforce and workplace. Standard commercial insurance policies include:

• General Liability Insurance 
• Commercial Flood Insurance
• Cyber Liability Insurance
• Professional Liability
• Workers’ Compensation Insurance

In addition, you can also find commercial coverage for specific industry niches, from franchise owners and manufacturers to restaurant owners, wholesalers, and distributors. Instead of completing multiple forms by yourself, you can work with an independent agent to get quick, reliable quotes from multiple companies. 

Should You Choose a Captive vs. an Independent Insurance Agent?

Insurance might be a necessary part of life, but it does not need to be complicated. If you’re searching for a new policy, teaming up with the right agent is essential. 

When choosing between a captive vs. independent insurance agent, we recommend going the independent route to access the most options available to you. 

That’s exactly what you’ll get when you work with NorthEast Insurance Services. We’re proud to be a Trusted Choice Independent Agent and a Better Business Bureau member, and we’re here for you. 

To learn more about what we offer, request a quote today!