Types Of Insurance Agencies

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Types Of Insurance Agencies – When you’re in the insurance market, whether it’s home, auto, or business insurance, you usually work with an agent who can help you find a policy that meets your needs. But, most people do not know that there are two different types of insurers – captive and independent insurers.

Independent agents have a broader and more comprehensive understanding of insurance trends, types of coverage and best practices.

Types Of Insurance Agencies

If you decide to change insurance companies, you will lose your existing agent, and you will have to contact several companies for quotes.

Types Of Insurance

If you decide to switch to another insurance company, keep your existing agent relationship, and shop around different insurance companies to find the best options.

In conclusion, there are many reasons to go with an independent agent for your insurance needs. Please contact your insurance agent for more information.

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Any cookies that may not be particularly necessary for the site to function and are used specifically to collect user personal data for analytics, advertising, other embedded content, are called unnecessary cookies. It is mandatory to obtain user consent before running these cookies on your website. Most people do not know what is in their insurance policy, much less understand the different distribution channels for the product itself. We have no warehouses or delivery trucks or shelf life. Our companies and our policies are highly regulated and are quite complicated for most consumers. This short article aims to explain the differences and advantages of the three main distribution channels for insurance: Direct, Independent and Online. Each has an advantage and a disadvantage, and while reading, I suggest that in the back of your mind it is a good idea to remember that “you get what you pay for”.

Direct (captive) writer agents carry the familiar names your parents knew well – State Farm, Allstate and Farmers (there are others). Let’s just call it AllStateFarmers (see what I did there?). These agents purchase a franchise with AllStateFarmers, use their systems and sell ONLY the company’s products. Call a captive agent for a life insurance quote; you will receive a life insurance quote from AllStateFarmers. They are only allowed to sell the products that their insurance company sells, regardless of the competitive price that happens to be in that area at the time.

The advantages for captive agents are brand recognition (to the public) and administrative capacity and simplicity (for the agent). AllStateFarmers sponsors Super Bowl ads, local agent sells its policies. And because the agent has only one carrier to work with, they can simplify their processes and ensure knowledge. The disadvantage is that if the designated captive parent of the agent is not competitive, or in some cases in CA – chooses to leave the state, the agent is subject to the decisions of the insurance company. Rule of thumb: when you see AllStateFarmers advertising their great CD rates, their insurance rates are bad.

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A waitress in a diner, a lizard and a caveman walking down the street…  It sounds like the start of a joke, but they’re just the famous mascots of the big internet insurance companies. They are similar to a captive agency in that they are a single insurance company, but instead of a local agent they sell online and over the phone from a service center in, well, who really knows where. They are the true pioneers in simplifying the method of delivery of an insurance policy (you must give credit where it is due).

The advantage – cheap. Most of the time, anyway. The downsides (remember the “you get what you pay for” admonition above) are that you are now dealing with an online self-service model or a service center. You are one of a billion politicians, so if you don’t like it, you can leave. Service levels tend to be less than a local freelancer or captive agent, because they don’t know you. The other disadvantage is the one that really bothers insurance professionals: they tend to sell cheaper policies because they tend to sell lower limits. It’s great for your budget – as long as you have a claim. We see this regularly in our office – that the GEICOs of the world will happily sell you a minimum limit policy and then tell you how smart it is to save money. We don’t think the approach is correct, per say.

An independent insurance agency is a private business that sells policies with multiple insurance companies. Independent agents are often called “brokers”. The relationship between the agent and the insurance company is very different from the captive agent – the independent agency has a contract to sell the company’s policies, but they represent the

, not the other way around. Freelance agencies come in all sizes, from a single agent to Fortune 500 corporations. Most Independent Agents belong to the IIABA and together they sell themselves as Trusted Choice agents.

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The disadvantage of an Independent agent is that they are small companies with limited resources, which try to master the different aspects of the policies of several companies. But this is also the advantage. When a Captive agent or a Network carrier increases prices, the customer has 2 choices: leave that agent/company or stay and pay the increase. Independent customers can keep the same agent but change carriers at renewal. Freelancers can purchase multiple carriers for clients, whether they are a business or a family.

It is our completely unbiased professional opinion that the Independent Insurance Agency has the edge when it comes to choosing insurers. Independent Agents answer to their clients, not to an insurance company. They can offer many quotes for family and business insurance. Because they have access to so many different carriers, they can work to tailor the right type of policy to your situation. They are local so they understand the local culture and business environment, and are invested in their own community. These agents assume that their customers want to save money, but are concerned about their coverage first, so they work to bring them

Joe Adamson was born in Sacramento and lived throughout the state, his family finally settling in Napa Valley. Joe attended UC Davis and was a member of the Aggie Football team. Joe has worked in the insurance industry since 2004 with a focus on Personal Lines. Now, Joe lives in Granite Bay with his wife, Lisa, and their two daughters, Shelby and Brooke. Joe started at Purves & Associates in the fall of 2018 and is responsible for partnering with our many referral sources to create a quote-to-quote process for them and their clients. In the fall of 2019, Joe accepted an expanded role to Personal Lines Manager, where Joe will focus on working with the Personal Lines Team to grow and serve new and existing clients in the greater Sacramento area and beyond .

In his free time, Joe enjoys spending time with his family, especially being a big fan of his daughters at soccer games and swim meets. It is sure to see the family cheering on the Aggie Football Team in the fall as well.

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Alicia is the latest Commercial Lines Account Manager to join Purves & Associates. His background includes six years with a wholesale broker. He was introduced to the insurance industry at the young age of 22, just after the birth of his first child. He felt it immediately

Professional connection from there and knew that she wanted to take root and grow in the insurance field. She continued to build the skills and experience to eventually take her Property and Casualty Exam to become a licensed insurance agent and she passed with flying colors!

While she’s not a Davis native like most here at Purves, she was born and raised in the Sacramento area, not too far from Purves’ home base. When not doing what she loves for a living, she shares an incredible life with her husband of 10 years and their two beautiful children! When they’re not at home having a family movie night or playing board games, camping and/or exploring – they travel to places that are fun and

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