Does your insurance agent have your best interests at heart?

Shopping for insurance starts with shopping for an agent. Whether you’re getting home insurance, business insurance or car insurance, you rely on an agent to navigate the terrain and find a policy that works for you. The question is, who’s the best person for the job?

There are two types of insurance agents you can work with: captive agents or independent agents. There are important differences between how these two agents do business, and generally you’re better served by working with an independent agent. Keep reading to learn why.

What’s a captive agent and what’s an independent agent?

A captive agent, also known as a dedicated agent, works exclusively for a single insurance carrier and can only offer customers this company’s policies.

An independent agent or insurance broker, isn’t tied to a single insurance carrier and works with multiple insurance providers. As a result, he or she is able to compare rates and plans from different companies when researching insurance policies for a client.

Working with a captive agent

Captive agents are able to cultivate a deep knowledge of the insurance policies that their specific carrier provides. If you were set on getting your insurance through a particular company, a trustworthy captive agent could help you get the most suitable policy. 

However, captive agents are often encouraged to sell specific policies and to meet sales quotas. In such cases, they obviously don’t have the customer’s best interests at heart.

But the most obvious disadvantage to working with a captive agent is that they can only offer you a limited selection of policies. There are important variations between the policies of different insurance carriers. If you’re stuck with one company when choosing your insurance, you’re much less likely to get the policy that best corresponds to your needs.

Working with an independent agent

Since independent agents aren’t tied to any one company, they can truly look out for customers’ best interests. After working with you to determine what you’re looking for in a policy, an independent agent will shop around your application to different insurance carriers. As a result, you’ll have more coverage options and more competitive prices.

A good independent agent has extensive knowledge of the insurance market and is adept at comparing policies. Moreover, he or she is able to judge a company’s financial strength to ensure that it will be able to pay out claims.

Experienced insurance brokers in Nova Scotia

The brokers at Eisenhauer Insurance are independent agents who are committed to getting you the insurance policy that best suits your needs. We compare the policies of the top insurance providers in the province to find the one that’s right for you. For more information or for a free quote, contact us today.