Working with an Agent or Broker

Captive agents represent a single insurance company exclusively. Like a car dealer who sells only one brand, a captive agent will sell you only the products of their employer – regardless of whether a competitor’s product might serve you better.

Independent agents – also called brokers – represent multiple carriers, often dozens. They can shop across companies and present options that are actually tailored to your situation. If you’re comparing policies, an independent agent or broker is typically better positioned to help.

Regardless of who you work with, understand that agents are compensated by commission. The larger and more expensive the policy, the higher the commission. That’s not a reason to distrust your agent, but it is a reason to also seek the perspective of an independent financial advisor whose compensation isn’t tied to what you buy.