Article by:
Elizabeth Rivelli
What is an independent insurance agent? It’s a licensed professional who sells policies from several insurance companies, so you can compare options in one place and get expert guidance in determining which policy is best for you. Working with an independent insurance agent can save you the time and legwork of researching companies and comparing quotes on your own.
Below, learn more about what agents do, how they get paid, how they compare with captive agents and brokers, and how to choose one you can trust.
Here’s the independent insurance agent definition in plain English: someone who helps insurance shoppers compare policies from the different insurance companies the agent represents. Because no single insurer employs them, independent agents can give you options and help you choose the right policy for your needs.
What is an independent insurance agent able to do for you, in addition to giving you a quote? Here’s a few of the services they bring to the table:
An independent insurance agent typically works for themselves. They might run their own local insurance agency, or work with a larger agency that employs independent agents. They contract with many insurance companies to sell policies.
Because independent agents aren’t tied to just one insurance company, their priority is matching you with the right policy instead of pushing one product that may or may not fit your needs. A good independent insurance agent builds a lasting relationship with their clients, rather than focusing only on the sale.
The two types of insurance agents are independent agents and captive agents (sometimes called exclusive agents). Here are the main differences between the two:
Independent agents represent multiple insurance companies. They can compare policies and personalized insurance quotes from all the insurers they work with.
Captive agents represent one company and sell only its products. They know that company’s policies inside and out, but they can’t provide quotes from other insurers.
Both independent and captive agents are experts in the insurance lines they sell, and both types of agents must be licensed in the state where they sell insurance. Getting licensed typically involves passing an exam and completing continuing education.
People sometimes use “insurance agent” and “insurance broker” interchangeably, but agents and brokers work differently. If you’re comparing an independent insurance agent and an insurance broker, here’s what to know.
Independent agents contract with specific insurance companies, and many can bind coverage (put a policy into effect) on those insurers’ behalf. They shop the market to find the best policy that’s unique to your needs, and they earn a commission from the insurance company when you buy one of its policies. Independent agents must have a valid license to sell insurance.
Insurance brokers also represent insurance shoppers. They aren’t tied to specific insurers, and they generally can’t bind coverage like an agent can. Brokers are also required to hold a license in the state where they operate.
Insurance companies pay independent agents a commission when they sell a policy. Insurers build that commission into the premium, so you usually don’t see it as a separate charge.
If you work with an independent agent to find an insurance policy, you typically don’t pay anything for their services, but do your due diligence and ask about any out-of-pocket charges up front.
Independent agents can be a great resource when you’re in the market for insurance, but it’s important to select the right one. Use these tips to choose an independent agent you can trust.
Ask around and read reviews: Start by asking your friends, family, or neighbors to recommend an independent agent they’ve worked with. You can also read reviews online to find potential options.
Check the agent’s license: Make sure the agent is licensed in the state where they sell insurance. You can verify an insurance license through the National Insurance Producer Registry (NIPR) or your state’s Department of Insurance.
Ask about the companies they work with: Find out which insurers the agent represents. Keep in mind that a high number of companies isn’t always better. What matters more is whether the agent can find coverage for your specific needs. For example, if you’re looking to insure a teen driver, an agent who works with dozens of home insurance agencies will be of little relevance.
Ask about fees: Insurance companies pay independent agents when they sell policies, but some agencies might charge additional fees. During your conversation, ask whether the agent charges anything for helping you find a policy.
Ask how they help with claims: Many independent agents can advocate for you if you need to file a claim. It’s worth asking how the process works, what exactly they can help with, and how much you’ll handle yourself.
For many people, yes, especially if you want help comparing several insurers or have unique coverage needs. An independent insurance agent is a licensed professional who provides personalized customer service, recommends the best types of coverage for your situation, and is a resource for all your future insurance needs.
Usually not directly. The insurance company pays the agent a commission, and insurers build that cost into your premium. However, some agencies do charge service fees, so make sure to confirm what you’ll pay out of pocket, if anything, before you start shopping for a policy.
Many independent agents can help you find personal insurance, like auto, home, renters, and umbrella insurance. If you’re looking for a specific type of coverage, or have special coverage needs, ask the agent up front what policies are available.
So, what is an independent insurance agent able to do for you? Plenty, but first you need to find one who can address your particular requirements. Ready to get started? Find an independent agent near you who will get to know your unique coverage needs and walk you through your options.
Plymouth Rock Assurance® and Plymouth Rock® are brand names and service marks used by separate underwriting, managed insurance, and management companies that offer property and casualty insurance in multiple states pursuant to licensing agreements. Each underwriting and managed insurance company is a separate legal entity that is financially responsible only for its own insurance products. A full list of underwriting companies by state can be found on our states licensed & disclaimers page. Actual coverage is subject to the language of the policy as issued. Some discounts, coverages, payment plans, features and benefits are not available in all states and companies, and premiums may vary by purchase method. PA Residents: we reserve the right to refuse to quote any individual a premium rate for the insurance advertised herein.