Auto insurance agent auto insurance agency auto insurance broker types

There are two types of auto insurance agent auto insurance agency auto insurance broker.

a) the captive agent, who represents only one insurance company (major carriers like AAA, Allstate and State Farm sell policies through captive agents).

b) the independent agent, also known as a broker, who represents several insurance companies and therefore does not have a vested interest in selling you a policy from one particular company.

The main advantage in having your own agent is that this person has a vested interest in keeping you happy. Accordingly, he can become familiar with your situation and guide you toward a suitable policy. Howard favors the use of agents and advised, “Don’t rule out direct providers, but my personal preference is to have an agent, preferably an independent agent, write your policy for you…. An independent agent would become aware of less advantageous conditions with one company [and help you move to another]. You can change carriers without changing your agent. I encourage consumers to develop a relationship with their agent.”

Auto insurance agent auto insurance agency auto insurance broker types