Captive vs. Independent Agents

Hi everyone,
I want to thank you for taking the time to read our brand new blog!  Today we are going to cover a few things that many of you may or may not know. We are going to discuss what some of the differences are between a captive agent and the opposite of a captive agent, an independent agent. I am going to go over the definitions of both and then talk about some points that I feel will help you make a great decision in choosing which type of agent will be the right fit for you.   

Let’s start with what a captive insurance agent is. A captive agent is an agent that works for one parent insurance company only. They may be a full time employee for the parent company or they may be an independent contractor for that one company. A captive agent has an in-depth knowledge of the products they offer, however, they can only write business within that one company. Captive agents cannot help those who do not need or do not qualify for that company’s products. The captive agent’s parent company may also push it’s agents to sell policies to meet certain sales quotas.

Now that we’ve discussed captive and how that works, let’s now cover the opposite of a captive agent: an independent agent. An independent agent is an agent who does not work for any particular insurance company. Instead, independent agents can sell policies from an array of different companies and many agents have several parent companies that they work with. This arrangement can be better for clients because the agent can seek out the best policy, with the best parent company for that client's needs. Like a captive agent, an independent agent can also specialize and be very knowledgeable about a particular company's products. However, unlike a captive agent, an independent agent does not have a push to sell policies to meet certain sales quotas.

So, to review, a captive agent may be the right choice for you if you do not foresee any troubles where you may not qualify and be accepted under the captive agent’s parent company. Be that as it may, an independent agent is most often the right choice for anyone. An independent agent can meet the needs of a wide multitude of people because they simply have more options at their disposal. An independent agent can work with one company that specializes in servicing people who may have had DUI and need SR22s, and then turn around and work with another company that specializes in servicing people who have A+ driving records. An independent agent is knowledgeable enough to match you with the right company for your particular circumstances right off the bat. They can shop for you and provide you different options.

Here at Sterling Peaks Insurance, LLC we are an independent agency so we can better service our clients needs. We are available 24 hours a day, 7 days a week if need be. We also service all of Colorado, so whether you live in Sterling or Durango, Denver or Montrose or in our very own Grand Junction...we are here for you! We want to extend to you an invitation to call us so we can quote you out in our various companies and show you what we are talking about. We are more than excited to help you out anyway we can. Thank you for reading. Happy days to you!