Understanding How Your Agent Works

The average consumer has two main questions when it comes to insurance agents: What are the different types of agents and do I really need an agent to buy insurance?

The main types of insurance agents are independent brokers or agents and captive agents. Direct writers are direct sales agents for insurance carriers.

Independent Agents
Independent agents represent a variety of insurance companies. They are great if you want to compare rates of different insurance companies. You can tell the independent agent about your needs and budget, and they look for the insurance options that would fit you best. Independent agents make a living on commissions paid by the insurance company.

Captive Agents
Captive agents represent a single insurance company. They are paid in a similar structure to that of an independent contractor by the company they represent. Captive agents may have more detailed information about the company's insurance plans and discounts.

Direct Writers
If an insurance company does not have independent or captive insurance agents selling their products then they are considered a direct writer. One of the biggest misconceptions about direct writers is that they are always cheaper to buy from than an insurance agent since they do not receive commissions. However, this is not necessarily always true. Some companies use the money they would have paid in commissions to agents to advertise their services. After all, without an agent representing their products, they have to find a way to market their services to consumers.

Getting a range of insurance quotes from different sources is the best way to save money. If you are looking for an insurance agent, 2insure4less.com can help you to easily compare quotes from all types of licensed agent in your state.