What is the difference between a captive agent and an independent agent?

What is the advantage of working with an independent agent?

Independent agents work with a variety of insurance companies to get you the best coverage at the lowest prices. An independent insurance agent has access to many markets to provide you with the policies you need. This access to choices can mean lower rates, less restrictive policies, and better coverage.

Why should I use an independent insurance agent?

They give you a choice – Independent agents represent many different insurance companies that offer a wide variety of coverage options and price points. ... With their connections and their knowledge of the market, agents can often find a better value for your insurance dollar than you might find searching on your own.

Are State Farm agents captive?

State Farm, Allstate, and Geico are all insurance companies that will only sell their products through their agents. They don't permit their agents to sell any products from any other insurance companies. Hence the word captive. These agents are captive to a single insurance company.

Are New York Life agents captive agents?

A captive agent is an agent that generally represents a single life insurance company. ... Some examples of life insurance companies with large, captive agent field forces include Northwestern Mutual and New York Life.

Are Primerica agents captive?

Captive agents

Primerica's agents are captive, meaning they are dedicated to Primerica and cannot quote rates from multiple companies.

Is SelectQuote a captive agency?

As an independent agency, SelectQuote is not a captive of any one company. When you shop with them, you're getting access to a wide range of quotes from top insurers.

Are independent insurance agents good?

An independent agent can do important things for you: Agents have at their disposal the ability to quickly check prices and coverages with dozens - if not hundreds - of different insurance companies. Since rates vary widely an independent agent can very likely get you a better deal than you can get for yourself.

Is Progressive a captive agent?

Examples of captive insurance agents are those who sell for State Farm, Farmers, and Allstate. ... Examples of the types of insurance companies that distribute products through independent insurance agents are, Travelers Insurance, The Hartford, Mercury Insurance and Progressive.

What is captive agent on my Mac?

This popup is a utility built in to Mac OS called the Captive Network Assistant (CNA). The idea was to make it easier for users to authenticate on visitor-based WiFi networks that require some form of authentication (usually initiated from a web form) to get online.

What does a captive insurance company do?

A captive insurance company is a wholly-owned subsidiary insurer that provides risk-mitigation services for its parent company or a group of related companies.

What is an independent producer insurance?

Independent insurance agents, also known as insurance sales agents or "producers", typically sell a variety of insurance and financial products, including property insurance and casualty insurance, life insurance, health insurance, disability insurance, and long-term care insurance.

Are Transamerica agents captive?

For example, working as a Transamerica career agent, you are captive to Transamerica. This means you ONLY sell Transamerica products.

Are Northwestern Mutual agents captive?

This is a captive company- which means if you ever decide to leave them and move to another firm, or start your own firm, you do not keep any of the commissions you earned. They keep them all.

Does Allstate appoint independent agents?

“Allstate has worked with independent agents since 1974,” says Allstate spokeswoman April Eaton in an email sent to PC360. ... The company also has its Encompass brand that sells personal lines and small-business insurance exclusively through independent agents.

Does State Farm work with independent agents?

* State Farm agents are independent contractors and are solely responsible for office expenses and decisions regarding the employment and/or management of agent team members employed by them.

Which insurance companies use captive agents?

Most of the major insurance companies, like State Farm, Allstate and Farmers, use captive agents to sell their insurance products.

Who own a captive insurance company?

A captive is a licensed insurance company fully owned and controlled by its insureds – a type of “self-insurance.” Instead of paying to use a commercial insurer's money, the owner invests their own capital and resources, assuming a portion of the risk.

Do you pay more for insurance if you go through an agent?

It can be cheaper to buy car insurance online than through an agent, if you are willing to do the work of understanding and comparing policies. Using an agent can cost you 5% to 20% extra on a new policy in the first year and 2% to 15% every time you renew, according to numerous sources.

Which insurance company is best to be an agent for?

How do I choose an insurance agent?