Quick answer: Buying direct from Geico or Progressive gets you one company’s price. An independent agent compares many companies for the same coverage, at no added cost, and re-shops when your rate goes up. Direct can be fine for a simple auto policy; an independent agent usually wins once you own a home, have teen drivers or need an umbrella.
What’s the difference between an independent agent, a captive agent and buying direct?
- Direct (Geico, Progressive online): you deal with the insurer; one company’s products
- Captive agent (State Farm, Allstate, Farmers): a local person, but one company’s products
- Independent agent (CAP): local person, many companies’ products
Is an independent agent more expensive?
No. Insurers pay agents a commission built into rates that are filed with the state, so the same policy usually costs the same whether you buy it direct or through an agent.
When does buying direct make sense?
Simple auto insurance only – and you are comfortable dealing with claims by app.
When does an independent agent make more sense?
You own a home, have multiple drivers, a teen driver, a lake home, rental property, a business, and more assets to protect. Also if you’d like a quarterback who will run point on your risk profile. Independent agents also help service the policy dealing with vehicle changes, billing issues, and claims guidance.
A simple example
We often help Charlotte area residents who come to us with multiple policies spread across several companies. Maybe the home is with Liberty Mutual and auto with GEICO. We are able to simplify their portfolio, get them better coverage and save them premium expense. We recommend layering on an umbrella for added protection.
How do I find an independent agent in Charlotte?
Look for an agency that represents multiple insurance companies, not one brand. CAP Insurance Group is an independent agency in Charlotte representing 20+ carriers. Call (704) 540-4200.