When you’re looking to purchase a new insurance policy – whether it’s life, home, or auto – you usually work with an insurance advisor who can help you find the best policy for your situation. However, many people don’t know that there are actually two different types of insurance advisors – independent and captive.
But what’s the difference between a captive and an independent insurance advisor? To put it simply, a captive advisor is contracted to work for one insurance company. An independent advisor, on the other hand, can work with several different companies and sell policies from different providers.
As a consumer, it’s worth knowing the main differences between these two kinds of advisors so that you can work with the one who can best benefit you. So continue reading and we’ll walk you through everything you need to know!
Captive Insurance Advisor
The majority of the major insurance companies work with captive insurance advisors to sell their policies. These agents are only selling policies that come from one provider, so the agent is likely an expert at knowing all of the different policies that the provider offers.
A captive agent will also receive plenty of support from their insurance company. Sometimes they even get their own office and staff to help them manage their tasks. Aside from helping consumers find and buy insurance policies, these advisors also put their time into networking with new clients and strengthening their relationships.
This can sometimes mean that you’ll get better customer service from a captive advisor.
Independent Insurance Advisors
An independent insurance advisor will work with multiple insurance agencies. This advisor will sell certain policies from each provider.
For example, an independent advisor might work with a certain agency and only sell their home and auto policies. Many consumers like working with independent advisors because they’re able to get a wider array of options.
Unlike a captive advisor, however, an independent advisor is responsible for their own overhead. They’re essentially running their own freelance business and are totally responsible for their work.
Independent advisors are able to offer you policies that are more personalized to your needs. That’s because they can help you choose from a variety of providers as opposed to being stuck with just one company.
The Importance of Knowing the Difference Between Captive and Independent Insurance Advisors
As we can see, there are some significant differences between captive and independent insurance advisors. But by knowing how they differ, you’ll be able to better decide which kind of advisor is most likely going to benefit you.
If you have your heart set on a certain insurance company already, then it would likely make more sense to go with a captive advisor. But if you’re not sure which company to go with, an independent advisor might be more helpful.
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