When you shop for auto, home or business insurance, you will usually work with one of two kinds of agents: a captive agent or an independent agent. Both are licensed professionals who can help you buy coverage. The big difference is how many insurance companies they can offer you. Knowing that difference can help you decide where to start.
What is a captive agent?
A captive agent represents a single insurance company. They sell that company's policies and nothing else. You will often see captive agents working under one company's brand, and many work out of local offices tied to that company.
Pros of a captive agent
- Deep knowledge of one company's products, discounts and processes.
- A simple experience if you already know and like that company.
- Easy bundling of several policies with the same company.
Cons of a captive agent
- Only one company's prices and coverage to choose from.
- If that company declines you, raises your rate, or doesn't offer a coverage you need, the agent can't move you elsewhere.
- Comparing prices means contacting other agents yourself.
What is an independent agent?
An independent agent works with multiple insurance companies, often called carriers. Instead of offering one company's policy, they can compare coverage and prices from several carriers and recommend the options that fit your needs. Independent agents work for their own agency, not for any single carrier.
Pros of an independent agent
- More choice: one conversation can cover options from many carriers.
- Flexibility at renewal: if your rate goes up or your needs change, the agent can shop your coverage again.
- Access to carriers for harder-to-place risks, such as farms, trucking, contractors or high-value homes.
- The agent can help you with coverage for your home, cars and business in one place, even when those policies are with different carriers.
Cons of an independent agent
- Your policies may end up with more than one carrier, which can mean separate bills or apps.
- Not every independent agency has access to the same carriers, so selection varies from agency to agency.
- Some carriers only sell through their own captive agents, so an independent agent can't offer those companies.
Does one cost more than the other?
You generally don't pay an agent directly for help choosing coverage; agents are typically paid by the insurance company. Your price depends on the carrier, the coverage you choose and your own details, not on whether the agent is captive or independent. What an independent agent can do is compare several carriers' prices for the same coverage, which a captive agent can't.
Which is right for you?
A captive agent can be a good fit if you are happy with one company and want to stay with it. An independent agent can be a better fit if you want to compare options, have coverage needs that don't fit a standard profile, or want someone to re-shop your insurance over time. Either way, look for an agent who explains your coverage in plain English and answers your questions before you buy.
Questions to ask any agent
- How many insurance companies can you quote for me?
- What does this policy cover, and what does it leave out?
- How do deductibles and limits change my price and protection?
- Who do I call when I need to file a claim or make a change?
- Will you review my coverage again at renewal?
How FIG Insurance works
FIG Insurance is an independent agency. We were founded in 2004, with roots back to 1936, and we specialize in Property & Casualty insurance. We work with 138+ carrier partners, are licensed in 26 states, and have 17 offices across Idaho, Montana, Nevada and Utah, plus agents in Texas and Georgia.
When you ask FIG for a quote, a licensed agent learns what you need to protect, compares options from carriers that fit, and walks you through the differences. We cover auto, home, business, farm & ag and umbrella insurance, along with specialty lines like workers' comp, contractor, trucking and restaurant insurance. If your needs change later, we can shop your coverage again.
Coverage varies by policy and carrier; talk with a licensed FIG agent about your situation.