Rates increased up to 12% this year.
by Admin
Posted on 29-11-2022 09:47 PM
insurance
agents often face a pivotal decision after spending a few years in the business: remain captive or go independent. Here are the pluses and minuses of each career path.
Insurance sales careers follow a common pattern. Recruits often enter the business as career or captive agents for a large insurance company. They receive extensive training, support and employee benefits in return for selling what their firm wants them to sell. After a few years of experience, they may decide to become independent agents in order to provide their clients with more product choices. As independents, they no longer qualify for employee benefits, but their sales compensation may increase significantly due to increased commission rates.
Multiple quotes from different companies
Getting the
coverage
you need to help protect your home at a fair rate can be challenging. Home insurance costs vary greatly, depending on the insurer, details about the policy, your home's location and value.
The agents at jim kelly insurance in libertyville, illinois, understand how important it is to keep insurance costs down without sacrificing coverage. Contact us today to learn more about how you can lower your home insurance costs with help from a local independent insurance agent. Why choose an independent insurance agent?
an independent insurance agent can help you shop for insurance among several trusted insurers.
One of the major benefits of working with independent agents includes getting many quick quotes from multiple insurance carriers. If someone is shopping for insurance, independent agents are a great place to start checking out policies because they can check several different companies’ rates all at once. The more companies checked equals a greater chance of finding the best rate for you and your family. The time-saving factor is huge because a prospective policyholder only has to provide their information one time.
Why should you use an independent agent? here are some of the reasons they are the best choice when looking out for your personal or business insurance needs: independent agents work for you, not the insurance companies. Their primary job is to represent you, the customer. 1they study your specific needs and budget, making sure you have the coverage you need at a price you can afford. They also work to find discounts that may help lower premiums while still maintaining the coverages you need. 2receive fast quotes from multiple insurance companies. Since an independent agent isn’t tied to any one insurance company, you’ll receive more balanced information.
Independent agents are not beholden to any one insurance company. This means they can compare quotes from multiple companies to find the best policy for you at the most affordable price.
Less support for the agent
Generally speaking, there isn’t one better type of insurance agent. Whether you choose to work with a captive agent or an independent agent depends on you. The main benefit of working with a captive agent is that they have extensive knowledge of their insurers products and policies, because they have one carrier. However, working with a captive agent tends to be more expensive, due to extra fees that the insurance company charges. If you work with an independent agent, you’ll get more options, which also means a wider price range. But independent agents have in-depth knowledge about numerous carriers, where captives only need to learn one.
If your car is hit by someone with minimal or even zero car insurance, do you want your auto policy to cover the gaps? if a high-value item gets damaged or stolen from your home, do you want to be compensated for it? do you want to make sure your family doesn’t struggle financially if something happens to you? would it help you if a professional took stock of the risks that your business is exposed to? alone, it quickly becomes an uphill battle to find the best insurance options that fit what you actually need. Do you want to shop smarter and make sure you’re getting the right coverage to protect what matters most? do you also want to take ownership of your insurance buying decision? then it’s time to get the expert guidance and individualized support that only comes from working with an independent insurance agent.
When you join a captive agency, you’ll be handed an established set of guidelines and rules on how to set up and run an agency. Much of the decision-making and guesswork is taken out of setting up your business, as you’ll receive operational and administrative support, as well as marketing assistance. Your company will funnel referrals and leads to you, and you won’t have to rely solely on your own marketing efforts to find new business. You’ll also benefit from a national marketing budget and brand recognition right on your front door. You will likely have the stability of a paid salary with commission.
Perhaps being tied to a single insurance company can be the biggest drawback of becoming a captive agent. Unlike independent agents, you are obliged to the carrier you work for, not necessarily what is best for your client. For instance, some carriers still impose individual quotas for certain products. Even if those products are subpar compared to other products on the market, the agent is pressured to sell it to their client to make that quota. What’s worse than not being able to provide the needed support to your clients? you are limited to selling what the carrier offers, and what the carrier offers could be at a higher rate than what a client could find elsewhere.