When we shop for auto, home, or business insurance, we generally have the option to choose from working with one of two types of insurance agents: captive and non-captive, or independent insurance agents.  

What are the differences and benefits of each?

Captive

By definition, a captive insurance agent works exclusively for one specific insurance carrier and is obliged to write business for that company. The parent carrier will usually provide the agent assistance setting up the agency, training, marketing & office expenses, and benefit plans. The agent will in turn become an expert on the company’s product line, and effectively become an extension of the carrier.

For the consumer, benefits of the captive agent are being able to offer a nationally recognized brand and being able to offer knowledge of that company’s procedures & guidelines.

A drawback of working with a captive agent is that they are only able to offer a quote from the carrier that they work for. If your policy premium were to increase, they would not be able to offer any other options. Furthermore, many captive agents are prohibited by their carrier from referring clients to whom you cannot sell a policy. Strict sales quotas

For the captive agent, their priority is the carrier.    

Independent, or Non-Captive Agent

A non-captive, or independent insurance agent represents multiple insurance carriers and is not obligated to any one specific company. The agent has the ability to compare coverage and price among several insurance carriers instead of just one. 

The non-captive agent can be much more beneficial to the consumer for that reason: the ability to shop price & coverage with multiple carriers and find what’s best for them. In the event your policy premium increases, the independent agent would have multiple other options for you to choose from instead of just one. If one specific agent cannot find a competitive policy, they are free to refer you to someone that can help.

For the independent agent, their priority is the customer.

When you’re ready to shop for home, auto, or commercial insurance, call Consolidated Agency of Rochester, NY at (585) 467-4110. You can also visit their website to find out more about the agency and their offerings.