How an Independent Insurance Agency Works

Independent insurance agents are one of the 3 avenues to getting home, auto, and business insurance . But the differences can be hard to perceive. This video breaks down your options.

Here are some highlights:

The 3 access points to home, auto, and business insurance :

1. Online/800 Number
Go out and get your own insurance policies using a web portal or calling a hotline

2. Captive Agent
A local branch of a large insurance company. The term “captive” means the local representative works for the company.

3. Independent Agent
A small business that provides access to multiple insurance companies and advice about which company and coverage is best for you.

Pros & Cons of Each:

Generally, the fastest way to get an insurance quote is through direct access to an online company. Their systems are automated and can give you a quote immediately. No advice about how good your policy is but fast.

Here both Captive and Independent Agents should have you covered. You can walk into their office, meet face to face, and talk through your insurance options.

When it comes to the best companies , high quality coverage, and well-rounded advice, independent agents have every motivation to be the best option. They aren’t tied to one company so their advice is much less biased. They work with companies that focus on quality rather than blasting the airways with a billion ads.

It’s important to note that no company or insurance agent can ever claim to have the best price. That’s simply because price is constantly changing. When you’re looking for insurance , it’s a single moment in time. The company that’s the best right then may not be the best in a year.
Having said that, Independent agents have a huge advantage on price for two reason:
1. There is price competition inside the agency
Independent agencies work with multiple companies . So the companies know that they have to bring their best pricing every year to stay relevant. If they can’t, the agency can just move on.

2. Independent agents see the ebb and flow of price
Captive agents see one company all day long. This is the only company they can offer. Independents are motivated to be watching and connect with the companies that are most competitive.

So, What’s an Independent Insurance Agency:
• Access to multiple exclusive insurance companies
• Works for you not the company
• Is motivated by quality and good advice
• Can usually find the best price and coverage
• Helps during claims



Comments (24)

  1. It’s help me to learn Independent Agency, Thank you Sir

  2. Great to know.

  3. Thank you very much, I need an independent agency to work with.

  4. Great video! I currently work for a cpative agency and was thinking about going independent. A couple of questions for you, how much of experience do you need to be an independent agent? I only ask because I just started in the insurance business, going on 3 months now, i know you need at least a year or two of experience. And also too, when getting appointments to represent carriers, do you need to create your business first, i'm guessing, since I see on every insurance company's site, it has listed "Agency name". I know I'm starting out and was wondering what to do to get those carriers.

  5. I really enjoyed your channel but what about life, health & business independent agents

  6. House insurance buy H O5 insurance policey 1st replacement cost must , make a move of your home inside and out side and keep in bank locker .

  7. Also use independent insurance agents only because of competition and quality , value , price , compaire , advice , advice in claims in insurance .

  8. This video is very insightful.

  9. Subscribed! This is an honest non-salesy video that was very comprehensive in nature. I look forward to watching the auto insurance videos!

  10. what kind of software an independent agent will be using to get quote and setup ? software for every insurance company they work for or the use only one for all ? thanks

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  12. This was a very good presentation!

  13. what do you think of clusters like SIAA?

  14. You are awesome. I will be subscribing to your channel

  15. Interesting viewing. Do you disclose what your commission is from various Companies? Personally I would like to understand the independent agents incentives throughout the process.

  16. Great video – thank you! Can you explain the difference between an FMO and an agency? From what I'm reading it seems like an FMO does the same exact thing as an agency i.e. get contracts, supports agents with back office tasks, provides training, etc.

  17. This guy is an incredible teacher! Usually I have questions that go unanswered even after watching other videos but after watching this, I had ALL my questions answered. You have a new subscriber!

  18. Great video! Any tips on places to take a course online? A lot of them look pretty sketchy. Thanks for the help!

  19. How To Create A Frenzy Of Red-Hot Buyers!

  20. Where can you easily find resources for independent agents to find these quality policies for their clients??

  21. Informative Video on how independent as well as captive agents work.Thanks for sharing the difference between captive and independent agents.

  22. Excellent video Jeremy. Great education on the pros and cons of independents and captives. Keep up the good work

  23. Which insurance carriers are best for Agents for P & C


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