What’s an Independent Insurance Agent?

An Independent Insurance Agent is someone who represents multiple Insurance companies. This means that they can shop the market to find you the coverage you need at the best price. Year after year after year. Because unlike some insurance agents that represent one insurance company, independent agent represent many.

In the insurance industry there are different kinds of insurance companies, and each company chooses how to distribute their product. Some use captive agents, some sell direct, others use Independent agents, and some choose multiple methods. Many use multiple ways to distribute their insurance products. Let’s see what each of these mean.

Captive agents – These are the ones you are most familiar with. State Farm, Allstate, Farmers, and American Families all use the captive agent model to distribute their insurance products. These agents can be excellent insurance agents, but contractually are only able to sell you one company. So if rates go up, you have to find yourself a new insurance agent.

Direct writers – With the internet there are an increasing number of direct writers. These include companies like Progressive, GEICO, and Esurance. You go online and can purchase your insurance, but again, if rates go up you have to do the shopping.

Independent Insurance agents – These are agents that get contracts with multiple insurance companies and can shop the market to find you the best rate. These agents tend not to have well-known names, but the companies behind them can be very well known. Safeco, Travelers, Metlife, and others like to distribute their products through independent agents.

Then there are those that choose to distribute through multiple channels. Allstate for example, has their captive agents, but also sells direct as they purchased Esurance, and they use the independent channel through a company called Encompass. Farmers sells direct through its agents, but also purchased 21st Century to compete with Esurance and Progressive. Farmers also purchased Foremost and Bristol West to sell through independent agents. Progressive is well known for its direct sells, but also boast that more independent insurance agents sell through Progressive than any other company.   Seems to be a lot of ways to get the same companies, and it is. But if that is the case, then why wouldn’t you let someone do all the shopping of insurance. An Independent agent.

That’s why Gila Insurance Group LLC chooses to be an independent agent. Because in the end, we can provide the best value for our customers. Year after year after year.

Learn more about who we choose to partner with, and about Gila Insurance Group, LLC today.

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