Captive or Independent Agent – Note The Difference

Independent Or Captive - You Get to ChooseFor residents of Ohio owning an insurance policy is a must. However, you will be perplexed by the decision on whom to approach and how to avail an insurance that best suits your requirements. There are two types of insurance agents who will make your search easy, an independent agent and a captive insurance agent. A brief knowledge on how these agents work will help you decide on whom to approach.

Differentiating The Agents

Captive agents are insurance agents employed by one company and they will insure their clients only with that company. They are bounded by an agreement by that company to work for them. These companies are usually very large providing wide variety of insurance policies, services and products. The agents will be employed by the companies. Some fresh agents prefer to start as a captive agent as they will be promised with fixed wages and enjoy other benefits. Some companies do provide their leads to kick start their business as independent agents. When you ask for a quote from this agent, he will help you with rates of that company. A captive agent has an added benefit to choose multiple lines of insurance in same company.

Independent insurance agents does not work for one specific company, but rather for multiple companies at same time. With an independent agent the customer can also enjoy the experience of ‘shopping around’. He will have contacts with most of the insurance companies of Ohio and is authorized to sell their products and obtain the customer a best deal possible. Independent agent will be paid commissions by the company for which he will provide the lead. Here the agents get to operate in one line such as either home or car or life. An independent agents has to take up the responsibility on his own to start a new business and bear all the expenses of successfully running his office. Independent agents have more flexibility in finding lower insurance rates.

Opting for The Best

When shopping for insurance, it’s always a good idea to contact both captive and independent agents to get the best price comparisons. Every Ohioan’s need and requirement is different. Based on your home location, occupation, annual income, miles driven, car model and many other accessories your car insurance and home insurance policy rates vary. Here, be the success of any agent depends on his capability to sell a policy. It depends on you as an individual to grow networks, utilize your time, maintain a good relation with the  agents and obtain an insurance policy that fits your budget.