Did you know that the way in which you purchase your insurance has the biggest impact on the rates you’ll pay? It also impacts what type of coverage you’ll have and the time and energy you’ll have to expend in finding a policy that meets your needs.
Below, we’ll go over the top three ways that most people purchase insurance — eventually landing on a way that can change your entire insurance buying experience for the better (and save you money!). Let’s begin!
Buying Insurance, Route #1 – With a Captive Agent
The first way that most people buy insurance is with a captive agent. This route sends you to local individual, licensed to sell insurance from one single company. Many captive agents work for companies such as Farmers Insurance, American Family, or State Farm — but remember, they can only work for one company. Therefore, if you work with them, you’ll only get quotes from one company.
Buying Insurance, Route #2 – Direct From the Company
Another way that insurance is commonly sold is direct from an insurance company. For example, you may contact a company like Esurance or Geico directly online or by phone and get your policy that way. Direct buyers frequently assume they’re getting the best deal because they’re cutting out the “middleman.”
Buying Insurance, Route #3 – With an Independent Agent
The last (and the best way to purchase insurance is through an independent agent.)
An independent agent is like a captive agent in that they work for a select insurance company and help their clients locate the best policies. But there’s one key difference: Independent agents can work for multiple companies while captive agents can only work for one company.
This changes things entirely. Why?
It gives you, the client, choice. Instead of being locked into working with just one company like American Family or State Farm, you have options. You’ll be able to locate the best company for you and the best plan for you.
Some people don’t like the idea of an independent agent because they earn a commission, and ostensibly, this raises rates. While it is true that independent agents earn a commission on every insurance policy they’re able to sell, here’s what you’re missing: Independent insurance agents are working for you. Their main goal is to sell you the best policy they can find at the best rate. Their main goal is not to please the insurance company. This changes everything and means that you’ll be saving money by getting better rates.
Also, you’re not paying this commission; the insurance company you ultimately purchase from is. And although the commission may increase the overall price of your policy at first, you’ll be getting a better deal overall. In the end, because of the hard work that your agent puts in by being able to sift through the policies of various companies, you’ll make back the cost of their commission many times over as you continue to benefit from your chosen policy. Everyone wins.
Take Advantage of the Benefits of an Independent Agent
Independent agents work on your behalf — to find you the greatest rates, excellent coverage, and ample limits. So consider changing your ways for a spell! Make life easier on yourself, stop buying insurance direct, and go with an independent agent.
Working with an independent agent already? Share the value of their help and services with a friend!
And of course, if you’re still looking for an agent, give Harnish Insurance Group a call. One of our knowledgeable agents is standing by to help you find the policies that are right for you!