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Have you ever wondered what the difference is between a captive and independent insurance agency?  When people hear the word insurance it is often associated with businesses such as State Farm and Allstate.  Although these are extremely well known insurance companies, there are a majority of other independent agencies out there that can help you find the right affordable coverage’s for you and your family. 

A captive insurance agency only has the ability to write policies through one insurance carrier.  Many captive agents are not required to perform any of their own marketing or advertising simply because of how well recognized their company’s brand name usually is.  Most of the marketing is done by the corporate office.  Some agents who work for these captive firms may belong to other affiliated groups but are still solely responsible for increasing the business for their parent organization.  Many captive agents are bound by strict rules and regulations put forth by their parent organization and therefore for may have less ability to adjust their policies to meet exact customer needs. 

An independent agency is often viewed as its own separate business entity and has the ability to specialize in as many lines and forms of the insurance business that they would like.  Unlike a captive agent, an independent agent usually has to do a majority of their own marketing and advertising in order to generate viable leads while providing enough resources to keep the business running.  Independent insurance agencies are not bound by the same strict regulations that captive agencies are and therefore have the ability to write policies through a wide variety of carriers.  This helps many independent agents compare prices, products, and services that many captive agents may not be able to in order to meet the specific needs of their customers.

Some of the key benefits that you can receive when purchasing insurance through an independent agency is that they will have ability to shop around to find the right coverage’s and rates to best fit your own personal needs.  Not only will an independent insurance agency be able to shop around in order to compare prices, they will also have the ability to search for a new carrier whenever a premium increase occurs.  Many people are unaware how beneficial this can be when trying to find affordable insurance for your home or automobile.  Lastly, many insurance agents have the ability to provide stability for the customers by allowing the customer to have their insurance through one agency, even though their home and auto might not be through the same carrier.  Even though captive agencies are still very prominent in the business world today, independent agencies are growing at a much quicker rate and are becoming an even more key part of the insurance industry.

InsureMe LP. (n.d.). Retrieved February 04, 2016, from http://agents.insureme.com/insurance-agent/captive-vs-noncaptive

 

Trusted Choice Home Page. (n.d.). Retrieved February 04, 2016, from https://www.trustedchoice.com/

 

Wilmoth, K. (2015, July 23). Captive agent vs. independent agent | SmartChoice. Retrieved February 04, 2016, from http://www.smartchoiceagents.com/tag/captive-agent-vs-independent-agent/

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