Unique Insurance Options
Let’s start by explaining what these three options are, so you have a complete understanding of the terms being used and what value each provides. Majority of the citizens in the United States have three insurance options to obtain insurance through from hundreds of carriers to choose from for auto, home, life, commercial and other types of insurance policies. The 3 best routes to obtain insurance are explained below.
Agency Brokers: Brokers sell competitive priced insurance policies through carriers who usually only sell policies through agency brokers. The greatest thing about brokers is they work to keep your insurance rates very competitive by re-quoting you with other quality carriers when your current carrier increases rates that are just to high for you liking.
Positive Features: When you use a broker they retain all of your personal and insurance information, which speeds up the quoting process a lot. This comparative quoting process is simple and hassle free and usually only takes a few minutes. Another valuable thing the broker does is manage all your insurance changes and updates via a secure portal they use exclusively. The best feature of all with brokers is if you do end up having multiple claims they most likely will have access to a nonstandard market to place you with for insurance.
Negative Features: Most brokers don’t have online self service portals for you to manage your information as they manage this on their exclusive portal. Claims and other major issues will still need to be reported to the carrier as the broker will not have access to those resources.
Target Market: Standard and Nonstandard clients with a few, multiple or zero violations/claims.
Example Carriers: Travelers Insurance, Mercury Insurance, SafeCo Insurance and many more.
Direct Carriers: Direct writers operate through regional offices placed around the United States. Usually these carriers offer competitively priced insurance policies that are owned by them and sold by them exclusively. The only ways you can reach these carriers are by internet, phone or email as they do not have walk-in locations.
Positive Features: These carriers retain all your information and make managing it a breeze with their online self servicing portals. Another notable option these carrier employ is partnering with agency brokerages for clients that are high risk with multiple violations/claims. The best thing about direct carriers is that they are able provide an extremely flexible service 24/7/365.
Negative Features: You only get that one carriers quote, if it’s not competitive then you need to contact the next insurance company and start the search all over again. If you have multiple claims the carrier may non renew you.
Target Market: Standard clients with a few to zero to violations/claims.
Example Carriers: GEICO, USAA, Ameriprise and many more.
Captive Carriers: Now these carriers operate very similar to the agency brokers, except they are a franchise. They operate through agents that buy into their business franchise. They also have competitive priced policies, they usually go after the standard type of policy holder who has zero – few claims and violations on their record. These agents are paid through commissions that are similar to agency brokers commission.
Positive Features: These agents are usually local and they also offer online portals for you to manage your policies through the main carrier website. Another beneficial plus is that most of the captive agencies offer online banking products and financial services that are hard to beat when compared to brick and mortar locations.
Negative Features: You only get that one carriers quote, if it’s not competitive then you need to contact the next insurance company and start the search all over again. If you have multiple claims they may non renew you and provide you no other option, but to seek coverage elsewhere or through a partnered broker they know.
Target Market: Standard clients with a few to zero violations/claims.
Example Carriers: State Farm, Farmers, Nation Wide and many more.