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Home insurance phoenix – Captive Agent or Independent Agent

Posted on: December 4th, 2009 by admin

When speaking with your insurance agent you may often here him or her say industry jargon such as captive agent or independent agent. What does that mean and how what is the best way to find competitive home insurance phoenix quotes?

Let’s look at captive agents first. A captive agent is someone who works with one insurance company exclusively. On their business cards it says the name of the insurance company they work with and they will only give you quotes for home insurance phoenix from the only company they represent. What are the advantages of dealing with a captive agent? The good thing when dealing with a captive agent is that since they only work with one insurance company they know the company inside and out, they can tell you every guideline and every possible discount that they will be able to give you. What are the downsides? Unfortunately the big down side is that in the competitive insurance world they are only able to give you a quote from their own company. Much like shopping for that new TV, it pays to shop around because everybody is not priced the same.

Let’s take a look at independent agents. An independent agent is someone who has the ability to work with as many insurance companies as they choose. They can ultimately represent as many companies that they choose to give their customers more to choose from. What are the advantages of working with an independent agent? The biggest advantage is that an independent agent will shop insurance for you to find you the lowest rate on your home insurance phoenix. There are no additional fees for them to do the shopping; they do this to serve their customers in the best manner possible and not to be biased to give business to any one company. What are the disadvantages? The disadvantages are that some independent agents can start to work with too many insurance companies and not fully understand the company guidelines and all the discounts. Ultimately though if you find an independent agent who works with a handful of companies versus 20 or 30 they will often find you the best rate on your insurance.

Remember both independents agents and captive agents are unique in their own way. Just remember at the end of the day that shopping around pays off so always get bids from multiple insurance companies!

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