Top 5 Myths and Facts about Independent Insurance Agents

MYTH: Independent insurance agents can compare rates from all carriers.
FACT: Independent agents can only compare rates from carriers they have contracts with. Some larger agencies may be very good at comparing rates, but new, smaller agents may only have a few carriers they represent. Carriers usually want a minimum of premiums, or the agents get dropped.

MYTH: Independent agents only try and promote the company with the higher commission.
FACT: Commissions do vary, but 1% or 2%, and not enough for an agent to pick one company over the other. Ultimately the customer decides what company they want to go with. People usually base their decision on price, and may listen to agents experience with the carrier.

MYTH: Independent insurance agents work for the insurance company, so they only care about the company, and not the customers.
FACT: Most agents care a lot about the customers and want to keep their clients happy for both moral and financial reasons. They have a lot of experience dealing with claims service, customer service, and know what companies are better than others.

MYTH: Independent agents could never be biased towards one carrier.
FACT: Agents that have bad experiences with certain carriers will simply not recommend them to their clients. Additionally, many carriers offer contingencies if the 'book of business' is very profitable. This may encourage some agents to put low-risk with one company and high-risk with another company.

MYTH: I can find the best company & rate by going to one independent agent.
FACT: As said before, agents typically do not have contracts with all the carriers. Sometimes as few as 2 or 3. Also, some agents are more experienced than others. Talking to several independent agents and/or captive agents will help you find the best insurance company and rate.