When shopping for auto insurance, you’ll likely encounter both insurance agents and brokers. While they both help you find coverage, their roles and loyalties differ in important ways.
What Is an Insurance Agent?
An insurance agent sells policies on behalf of one or more insurance companies. Captive agents work exclusively for one insurer (like State Farm or Allstate), while independent agents represent multiple companies.
Captive agents know their company’s products inside and out but can only offer you options from that one carrier. Independent agents can shop multiple carriers to find you the best rate and coverage combination.
What Is an Insurance Broker?
An insurance broker works on your behalf rather than on behalf of insurance companies. They analyze your needs and search the market to find the best policy for your situation.
Brokers are licensed professionals who earn commissions from the policies they sell, similar to agents. However, their primary loyalty is to you, the consumer, rather than to any particular insurer.
Which Should You Choose?
If you value convenience and brand loyalty, a captive agent from a well-known company may be a good fit. If you want to compare options from multiple insurers, an independent agent or broker is usually the better choice.
Regardless of which route you take, always compare quotes from at least three different sources before committing to a policy.
