What You Should Know
- A captive auto insurance agent works for one insurance company and sells only the company’s policy
- An independent auto insurance agent, as the name implies, is not under contract with just one auto insurance company and can sell policies from numerous companies
- A benefit of working with an independent auto insurance agent is getting access to numerous auto insurance quotes
If you are researching auto insurance companies to see which one offers the best rates, you might have noticed a difference in the types of agents each company has on staff.
This may cause you to wonder “What is the difference between a captive vs independent auto insurance agent?” Keep reading to learn the answer to this interesting question and the benefits of working with each.
What is the difference between a captive vs. independent auto insurance agent?
A captive auto insurance agent, also called an exclusive insurance agent, works with only one auto insurance company. Captive insurance agents are contracted with the company, and can only sell policies from that company.
As its name implies, an independent auto insurance agent can sell policies from several auto insurance companies. They are not contracted with one specific insurance company and have access to various policies and rates.
Both agents can advise you on the different types of auto insurance coverage and other important aspects of your auto policy.
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What are the benefits of working with a captive vs. independent auto insurance agent?
Because a captive auto insurance agent works for only one insurance company, they tend to know the company’s policy options inside and out. As a result, they typically offer their clients a high level of customer service and can easily discuss the various types of auto insurance available.
For instance, if you are speaking with a captive auto insurance agent and have questions like “How much auto insurance coverage do I need?“, they typically can give very thorough replies.
One of the key benefits of working with an independent auto insurance agent is getting numerous quotes from various auto insurance companies. If you are in the process of trying to lower your auto insurance rates, an independent auto insurance agent can help.
Are there any disadvantages to choosing a captive vs. independent auto insurance agent?
The main disadvantage of working with a captive auto insurance agent is that you only get information about that specific company. Granted, you could still devote time to finding auto insurance quotes online, and gathering several quotes, but you won’t get this information from your captive insurance agent.
The main “con” to working with an independent auto insurance agent is that while they can offer you quotes from numerous companies, they might not have in-depth knowledge about each insurance agency.
How do I choose to work with a captive vs. independent auto insurance agent?
Deciding whether to work with a captive vs. independent auto insurance agent boils down to personal preference. For example, if a friend or family member suggests a specific captive auto insurance agent, and you are impressed with their knowledge and the rates they can offer, you might want to go with this option.
On the other hand, if you like the idea of easily shopping around and comparing quotes, an independent auto insurance agent may be the best choice for you.
Final Thoughts on Captive vs. Independent Auto Insurance Agents
Most importantly, you have adequate amounts of auto insurance coverage at an affordable price.
While there are differences between a captive and independent auto insurance agent, either type of agent should be able to help improve your understanding of auto insurance and provide you with an auto insurance policy that will fit your needs and your budget.
Frequently Asked Questions
What is the difference between captive agents and independent agents?
Insurance agents be either captive agents or independent agents. Captive agents work for only one insurance company, but an independent agent does not work for one insurance company. Instead, they can sell policies from a variety of companies.
What is the difference between a captive and a non-captive agent?
Captive insurance agents are contracted to work for one insurance company. Non-captive agents are contracted to work with several insurance companies and can sell policies from various insurance agencies.
What are the pros of a captive insurance agent?
The benefits of working as a captive agent include that the insurance company usually supports their agents and offers office space and support staff.
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Leslie Kasperowicz
Farmers CSR for 4 Years
Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance…
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