Independent Agents Details

There are ample benefits associated with selecting an independent agent for your insurance needs. One primary advantage of choosing an independent agent includes receiving faster quotes from multiple insurance carriers. If you are seeking an affordable insurance package, an independent agent is a perfect choice. They'll check the rates from many different companies and match you with the best option. With a clear understanding of the other companies' rates, an independent agent will give you precise, practical, and unbiased policy advice.

Independent agents operate the same way as financial advisors. They offer their clients a comprehensive insurance package and serve as a middleman linking insurance buyers with potential insurers to complete transactions. They offer products that match the user's needs by viewing many plans at once. Some independent agent directs clients to insurance policies that earn them higher commission rates, which can cause higher premiums for clients.

Independent agents develop unique marketing ideas and benefit from the general marketing of insurance products and plans. In case they fail to sell any policies, independent agents receive minimum benefits from their company or employer. It's essential to learn how these agents work, the advantages and drawbacks of engaging them, and the reasons why their services are crucial.

Example of Independent Agents

Independent agents earn contracts with specific insurance agencies. When a client approaches them for insurance, an independent agent will compare all insurance plans with their contracted agencies to find their customer's best options. They will then present all options to their clients, help them pick the best one, and file all necessary paperwork to get the plan active.

For example, Jane needs car insurance. She works with Independent Agent Bob to find the best car insurance. He quotes her $80/month with Geico, $65/month with Progressive, and $102 with AAA. After speaking with Bob and comparing plans, Jane decides to insure her car with Progressive. With Bob's contract and insurance license, he can write an insurance contract for Jane, and he can process her new plan from his office. Jane is quickly insured with Progressive and will continue to contact Bob for all future insurance claims and needs.

Independent Agents vs. Insurance Brokers

An independent agent is not that similar to an insurance broker. There are two critical differences between an independent agent and an insurance broker. First, an independent agent employs a sales strategy to represent multiple insurers to their clients. Independent agents can complete an insurance sale contract, unlike insurance brokers who need help to file all agreements.

In contrast, an insurance broker represents the consumer's interests only. They sell, solicit, and negotiate insurance on their client's behalf. They need to get an agent or an insurance company to complete any transactions for them. Brokers usually collect a fee for their services of finding and negotiating insurance plans for their clients.