The Difference Between Captive and Independent Agents

Which type of insurance agent should you choose?

Purchasing insurance can be a complicated and stressful decision—you are purchasing protection for your most valuable assets, and a promise that could potentially ruin your financial future if you make the wrong decision. But how do you know if you are making the right decision on the type or amount of coverage, or are you getting the best value? 

First you should know the different types of insurance providers: Captive agents and Independent agents. 

Captive Agents

A captive insurance agent is an agency that works for a single insurance company.  A captive agent is paid by that one company, usually with a combination of salary and commission, plus benefits.

Independent Agent

An independent insurance agent works for an agency that has access to sell multiple insurance carriers and can provide the clients with more options and are able to provide them with unbiased advice and information about the market. 

Advantages of Captive & Independent Agents

There are advantages and disadvantages to working with both captive and independent insurance agents. 

The benefits of buying through a captive agent are: 

  • Captive agents sell insurance for a single carrier, therefore they are very knowledgeable about their carrier’s offerings.
  • Captive insurance agents are usually employed by a big, well-known company.
  • You have more control over the companies that you are getting a quote from.

The benefits of buying through an Independent agent are: 

  • You have more options when you purchase through an independent agent
  • An independent insurance agent has access to many markets to provide you with the policies you need. 
  • An independent agent can help you compare prices from multiple insurance companies to help you find the best deal. 
  • Agents are typically local to your area and experienced in the needs of your area.
  •  Independent insurance agents can often provide ways to cover potential gaps in coverage with the use of policies that work alongside the insurance you already have.

Which type of agent should I work with?
Ultimately, a local independent agent is an advocate for you. When you purchase from a local independent agent, you are supporting a small business and its employees who live and work in the same community as you. They care about you and search the marketplace so they can find the best fit for you, your family, and your business.

Interested in understanding which Companies we represent as an independent agency?
Learn more here.

how can we help you?

Contact us at the Sprouse office nearest to you or submit a contact form.

Have questions about your insurance coverage?

Contact Sprouse Insurance to review your policies