There are two types of insurance agencies to do business with for your needs. If you’re not in the insurance world, you may not be familiar with the terms captive and independent. Let me give you a quick break down as to what option is best for you.
The first choice is a captive agency. Most captive agencies are recognizable by their business name. The agents are contracted to do business with one carrier. This means they must fit all their clients into one set of underwriting guidelines with one premium possibility. The downfall is when the company takes a rate increase. The only option for keeping your payments from increasing is to lower your coverage (protection) or raise your deductible (out-of-pocket cost) in the event of a loss.
The second choice is to do business with an independent agency. These agencies represent several carriers. They can review your needs and quote numerous options at one time. If the company you’re with takes a rate increase, they can quickly check to see if switching to another carrier provides a better premium. Once you’ve given your personal information to an independent agent, the work is off your shoulders. They make sure you’re getting the best premium available without compromising your coverage at every renewal.
Another benefit to choosing an independent agent is they work strictly on your behalf. Captive agents can be forced into meeting sales quotas or written premium dollar amounts. Independent agencies have the freedom to always choose you first without stipulations.
And finally, some captive agencies are unable to service every need. For example, if you need AirBnB coverage for your home, it is not available with every agency. However, independent agencies often have connections with a company that will provide what you need. Being with an independent agency gives you flexibility as your life and needs change without having to change agents.
Strategic Insurance Group values YOU, above all else. We desire for you to understand your coverage, while providing the best premium available. We are here to be a solution for your insurance needs and serve you with friendly and helpful customer service. Which is why we are proud to be an independent agency and would love to earn your business.