What is better for you? Choosing a captive insurance agent or independent insurance agent?

When you’re looking to purchase insurance you will have many decisions to make. Choosing an agent is one decision. How do you determine to use a captive insurance agent or an independent insurance agent? But the biggest question is “why should this be a consideration?”

A captive agent (State Farm, Allstate, Nationwide, Farmers, etc.) has an exclusive relationship with the company he or she represents. The company mandates that the agent only sells the products offered from that company only, for the privilege of working under their name.

An independent agent has no exclusive relationship with any company they represent. The agent is free to choose the products they will sell and the company(ies) will sell for.

All agents paid by commission in some form or other. Insurance agents must consider what company(ies) will give them the best opportunity to earn a living. Most agents look to work for big name companies because working for a big name company may offer them more opportunity to make a sale and get a commission check.

Why should you care what type of agent you use? The reason comes down to two more questions. The first question is about family, and the second question is about trust. The question about family is: when the agent is presenting you with a product whose family does he or she have in mind? Your family or their own family? The question of trust is a personal one for you as the client. When you look into the agent’s eyes do you trust that what is being offered is what is best for your family and not the agent's?

The captive agent must sell what the company offers.

Independent agents generally have a wide variety of products and companies. This variety is good for the client and the agent. The client has a better chance to find a company that can fit exactly what they need, the client can shop for the best price, the best company rating, and the best product without having to go or call company after company. The agent can look for what is the best product for this client and not feel pressure into selling anything that is close to what the client needs just to get paid.

There are many more facts to consider when choosing your agent, however don’t leave this consideration out. It may be the most important one of all.

Call Shelly Guibert, Ben Goodwyn Agency, independent insurance agent. 972.618.0100 shelly@bengoodwynagency.com

Member Independent Insurance Agents of Texas