Why Wouldn't You Chose An Independent Agent?

To go with an independent agent or to go with a captive agent? That is the question. This has been one of the all-time great insurance debates. Truthfully, I don't see why there is even a debate of this issue. I mean, ask yourself if you are fine being held to one company with rigid policies, or do you prefer something a little more, shall we say, flexible?

Years ago, I was under the impression to always go captive. Let me back this up a little bit before I start rattling off. A captive insurance company is one that has their own line of insurance products. They employ their own agents that can only sell their insurance coverages and policies. Captive insurance companies are those such as State Farm, Allstate, Geico, etc. As you can see, these companies tend to be pretty well known.

Because of the popularity of these captive companies, I always thought these were the best companies to purchase insurance policies. This definitely is not the case, these insurance companies may really be a product of their aggressive marketing campaigns. An independent agent may not have the "deep pockets" to market like the captive companies, but they tend to make up for this with the ability to offer a variety of insurance products which will result in a better "bang for your buck". I must add that if popularity is very important in your decision, don't fret. Independent agents usually carry some well-known companies, too (Travelers, Progressive,etc.).

In the uncertain economy that we are experiencing, it would be wise to be prudent with your choice of an insurance provider. Don't make the common mistake of being blinded by the company's label. Evaluate the products for what they are. Look closely at what they offer, compare coverages, and invest some time in learning a little about your potential agent (interview an agent).

One of the many reasons to chose an independent agent is the flexibility this agent can provide you. Be in a position to have a policy that contours to your needs and your budget (not the other way around). An independent agent can actively search for a company that is best for you. If you don't like something about a policy or company that your agent has suggested for you, the agent has the ability to find you a different company or policy within his/her vast portfolio of insurance carriers. This is not the case with a captive insurance company. The agent for this company will tell you what they offer, and it's basically a "take it, or leave" situation.

In addition, if you should get a traffic ticket or if you are involved in an auto accident - your premium may increase or you may be dropped by the captive insurance company because the consider you too much of a risk to insure. On the other hand, an independent agent can mitigate your costs by moving you to another insurance company within his/her portfolio.

In reality, there really is no contest. It's pretty obvious, isn't it? Think Flexibility! Go Independent!

Rico Henderson is the owner Henderson Insurance Agency, providing Medicare Supplement and Health Insurance and Affordable Texas Auto Insurance. To learn more, visit his site at All-AboutInsurance.net.


Henderson Insurance Agency

3960 Broadway Blvd., Ste. 111

Garland, TX 75043

972 -840-0700