How to get cheap car insurance rates and low cost car insurance quotes
INSURANCE AGENTS
There are three basic types of insurance agents -- captive or direct agents, independent agents, and brokers. A captive agent represents one company and all of that company's products. Independent agents are just that -- independent in terms of what policies they carry and what companies they use. The independent representative is a small business owner managing his/her own company. If an insurance company has independent agents selling their policies, they will not hire captive agents too.
Companies that work with independents include The Hartford and Fireman's Fund, while those who only contract through captive agents are, among others, Liberty Mutual and All State. Both captive and independents are paid commissions by the companies they represent.
An insurance agent represents the insurance company while a broker serves you. A broker is paid by the consumer to compile an insurance portfolio. Business owners who often have complex insurance needs usually hire brokers. The broker's job is to shop around, putting together an insurance package that will meet the insured's needs at the best possible price.
In choosing an agent you want to make sure you are comfortable with them and that they are able to communicate information clearly and accurately. Independent agents tend to have a reputation for being a bit more customer focused since the success of their business is based on connecting you with the right company.
A captive agent is partly defined by their company's reputation and popularity. If you go to a captive representative to buy insurance, they know one of the reasons you're there has to do with the image of the company they serve. This company connection obviously gives them an instant positive boost and an advantage over an independent agent.
Check with friends and relatives and your state insurance board to gather information on an agent's reputation. Taking time to sit down and talk to an agent will give you an idea about their knowledge, ability to communicate, and probable level of service.
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