Insurance is not like other products that can be purchased almost anywhere. Insurance must be purchased from an insurer or a qualified agent. Without the right insurance coverage, you may find yourself facing a serious situation in which you lose valuable property and/or money. For this reason, purchasing the right coverage from the right source is essential. Keep reading to find out where you can buy insurance and which option is best.
How to Buy Insurance
If you are purchasing insurance, you have several options to choose from. If you want to work directly with a knowledgeable individual who can explain insurance policies and help you make selections, you may choose to buy from a captive agent or an independent agent. You may also decide to purchase insurance coverage directly from an insurance company.
When buying from an agent, you can choose between an independent agent and a captive agent. While an independent agent can represent multiple insurance companies, a captive agent represents only one single company. For example, a captive agent may be affiliated with State Farm, while an independent agent may offer quotes from Safeco, Hartford, and Travelers insurance.
When purchasing directly from an insurance company, you will contact a single company and obtain quotes without the help of a local agent. For example, you may fill out an online quote request with Esurance or Geico.
Which Option Is Best?
Many people who choose to purchase insurance directly from an insurance company believe that doing so will help them to get the best price. However, in many cases, the opposite is true. Even though insurance agents make a commission on the policies they sell, the cost to the consumer is not always higher. Insurance agents are often able to find discounts and other deals that lower a consumer’s cost.
Both captive and independent insurance agents offer the benefit of providing you with valuable advice and assisting you throughout the shopping and purchase process. However, that is where the similarities end. Captive agents are tied to a single insurance company and cannot obtain quotes from other providers. Independent agents, on the other hand, have relationships with multiple companies, allowing them to help you shop around for the best price. Also, independent agents have more freedom and can provide unbiased guidance to their clients.
Likewise, if you have an independent agent and your rates go up, or your policy is canceled, you won’t have to find a new agent. Instead, your existing agent can help you shop for a new policy that meets your requirements.
Purchasing Insurance Coverage
In general, working with an independent agent is more beneficial than working with a captive agent or attempting to purchase coverage directly from an insurance company. At Stauffer-Klug Insurance, we are independent insurance agents who can help you find the best coverage for your needs. Please contact us today to learn more or to begin comparing quotes.