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What is an Independent Agency?

June 20, 2019


Insurance policies are confusing. They are full of jargon. The details leave your head spinning. Some people may even fall asleep trying to read a policy. Thankfully, this is where trusted insurance professionals come into the picture! For instance, they explain the unfamiliar terms and suggest appropriate coverages. Did you know these professionals are found in a variety of settings? Next, let’s define direct insurance, captive insurance agency, and independent insurance agency!

Where can you find a trusted insurance professional?

Insurance professionals work in a variety of settings. How do you know which would be the best fit for you? Understanding these settings is important. Read ahead for a review of three different types of insurance agencies.

Direct Insurance 

There is no insurance professional to assist here. Therefore, everyone works directly with the company online or over the phone. Do you like to manage your own policies on your time? If so, this might be a great fit for you.

Captive Insurance Agency

This type of agency is also referred to as an “exclusive” agency. We are all familiar with these agencies. We recognize their logo, their spokesperson, and maybe even their jingle. Who comes to mind? Maybe Flo from Progressive or Jake from State Farm come to mind. These insurance professionals only represent one company. As a result, the available policy choices are limited.

Independent Insurance Agency

Insurance professionals in an independent agency (IA) work with a number of insurance carriers, or companies. It is a big decision for an independent agency to pick which companies to carry!  For instance, the carriers need to have quality products that fit the needs of the agency’s customers.

First, independent insurance professionals get to know the customer. Then, coverage needs are determined. Finally, a policy that is most appropriate for the customer can be picked from the available options. There is no cookie-cutter policy! For instance, each auto insurance policy looks different from one person to the next. Your home insurance policy probably looks a lot different than my home insurance policy. Above all, we are all unique and our insurance policies should be too!

Independent insurance professionals come to know their customers. They find the appropriate coverage for their needs, no more and no less. At Hitchings Insurance Agency, we enjoy the opportunity to do exactly that for our customers. We have been helping individuals, families, farming operations, main street businesses and commercial entities protect what matters most since our doors opened in 1968.

After learning more about the types of agencies, do you think working with an independent insurance professional would be a good fit for you? We would love the opportunity to meet you! Click on the link below between now and then to learn a little more about our independent agency

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