Insurance - Basics for Buying

Insurance is insurance! You can buy insurance from direct writers, independent agents, or captive agents. Most companies selling insurance use one or more of these. As a customer it does not matter but having the understanding helps.

Insurance Companies that offer you to directly inquire from the company are direct writers. Perhaps this suits best those who know what exactly what their insurance needs are and details such as what coverage they exactly need.

Independent agents are typically licensed agents to sell various types of insurance, actually underwritten by different insurance companies. An independent agent gets commission as a percentage out of premium paid. An independent agent would do the comparative study and other research for the consumer. The agent may provide advice. The premium may end up being higher, at times.

Captive agents work only for one insurance company. Captive agent would provide advice about the cost but because of dealing with an insurance  company, exclusively, would not have optional products. Captive agents can be less expensive than independent agent but more expensive than direct writers.

Depending upon your situation, knowledge and need for insurance you may choose the source of insurance arrangement.  There are obvious advantages of each but the most important is that if you need, you should get the insurance policy.