To get a great deal on something, it’s usually a good idea
to “cut out the middleman.” This is the difference between buying from a
retailer or directly from a manufacturer. It’s common sense that the retailer,
or “middleman,” is going to mark up the price; how else is he going to make a
So why wouldn’t you skip the retailer and buy wholesale
instead? Most of time that is the way to get the best deal, but there are some
times when you shouldn’t cut out the middleman.
Buying insurance is one of those times.
In this instance, the “middleman” is an Independent
Insurance Agent, whose job it is to help you choose between many
different insurance companies to find the policy that is right for you.
What does it mean to be an Independent Insurance Agent?
An independent insurance agent has to be professionally
licensed by the state to sell insurance products directly to the public. It’s a
vigorous process that requires a great deal of knowledge about the various laws
surrounding the insurance industry, and gives them the responsibility to be your advocate.
The U.S. government set up the agency system so that agents
can sell people insurance with their client’s best interests in mind, rather
than only acting in the best interests of the big insurance companies.
A ‘captive’ agent only works for one insurance company
Insurance companies have their own agents, but they are not
independent. They are sometimes called “captive agents,” which basically means
they work for a single insurance company, and are incapable of selling you
insurance from any other carriers.
While this isn’t necessarily a bad thing—maybe you are only
interested in buying insurance from a single insurance company—captive agents
aren’t as flexible in what they can offer.
Captive vs. Independent Agents
Captive agents can’t give you very many options—only the
ones that their company offers. In this way they are “captive” to the insurance
company; they’re only concerned with the interests of the insurance company
that they represent. They would never direct you to another company, even if
that company would be a better fit for you.
On the other hand, independent insurance agents can offer
you policies from a wide range of insurance
companies. They aren’t beholden to any one insurance company, which frees
them up to focus on policies that best meet your specific needs.
The benefits of hiring an independent insurance
There are many benefits of working with an independent
insurance rather than buying directly from an insurance company. Here are just
agents can compare prices from many different insurance companies: If you were worried about
getting the best possible price, an independent insurance agent has the ability
to check prices from dozens of different companies, all at the click of a
- You can buy
virtually any type of insurance from an independent agent: All in one
place, you can purchase insurance for your home, for your car, and even for
your health. Since independent insurance agents have access to many different
insurance companies, they aren’t limited in the types of insurance they can
can be complicated: Do you really have the expertise to navigate the
insurance world, and be certain that you’re covering all your personal
insurance needs? It’s an insurance agent’s job to know all the ins-and-outs of
insurance, including the specific laws and regulations that vary from state to
state. She can help you find coverage that you might not have thought you
needed, and also to eliminate coverage that you don’t really need at all.
independent insurance agent only has your best interests in mind: Since
he’s not dependent on any single insurance company, an independent agent can
focus on you and your specific situation. Rather than trying to sell you
something you don’t need, he’ll work with you to find the insurance that is
right for you.
independent agent can be held responsible for mistakes: A licensed agent is
required to act only on your behalf. If she makes a mistake, then you can hold her
responsible by filing an Errors & Omissions
suit. On the other hand, if you bought insurance on your own, then there’s no
one to blame but yourself if you make any mistakes.
Finding an Independent Insurance Agent You Can Trust
The right independent insurance agent will not only be a
great benefit to you right now, but also in the future as your needs change and
evolve over time. Independent insurance agents are the perfect type of
“middlemen”: they stand beside you as your personal advocate, working to find
you the best insurance at the lowest possible price.
For an independent insurance agent in Florence, SC, contact CSP Insurance Services today at 843-519-2557.