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Car insurance: having an insurance agent or direct purchase

 Car insurance: having an insurance agent or direct purchase

Car insurance: having an insurance agent or direct purchase
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In the recent past, the only way to purchase car insurance was through an agent. However, buying car insurance online is becoming more and more popular, which raises the question of whether you need an insurance agent. car insurance quotes

Do you need an insurance agent?

You can only determine whether the advantage of getting an insurance agent that you can call directly, email them, or visit them in person at their office is worth more than buying a policy online. 

Buying insurance is important to your financial well-being and understanding coverage at the time of purchase, and since your changing needs is an important part of ensuring that you limit your exposure to risk. insurance quotes

Three sources of auto insurance

Here's a look at the sources of auto insurance and the role dealers play in each:

Captive worker

A captive agent is an agent who sells one primary insurance company. The responsibility of the captive agent is to conduct business with a particular carrier. 

Some of the largest insurance companies, such as State Farm, Allstate, and Nationwide, employ captive agents. Most carriers have 24-hour customer service centers, but captive agents handle most customer needs directly.

Independent agent

An independent agent sells insurance through multiple carriers. While an independent agent may sell primarily to one carrier, it can still do business with other carriers if this is beneficial to the customer. 

Independent agents work directly with the customer versus the insurance company, allowing for a broader search of carriers within a single agency. 

Some of the insurance companies that use independent agents are Auto-Owners, Citizens, and Hastings Mutual. Again, 24-hour customer service centers are available for most carriers, but the agent handles most of the customer's needs directly.


Direct purchase online means no agent is involved in the insurance process. The client does most of the work by entering all the relevant information online and sharing it from there. 

Some of the big online insurers include Geico, Progressive, and Esurance. car insurance companies

The benefits of having an agent

Personal service

Personal service is something many people are still looking for in the insurance industry. 

With so many automated services in place, seeing a smiley face or getting someone on the phone instead of trying to skip your way through voice messages is a breath of fresh air. 

Lots of questions, maintenance, and claims surround auto insurance. Having an agent is great because you can always talk to the same person, which builds a strong relationship compared to a different client representative every time you call.

Know your area

It also helps to have a local agent who knows your area. An agent can contact you and where you live. If you have a claim, your insurance agent will know which good body shops and glass companies recommend in your area.

Pay cash

Cash is becoming scarce, but for people who don't want to give it up, most agencies still accept cash payments.

Multi-policy discount

A great advantage of getting all your insurance with an agent is the multi-discount policy. Most insurers that offer products through an agent include auto, home, and financial services that, when combined, receive a multi-policy discount. 

Not many companies online yet offer home or financial products, which limits potential discounts. insurance companies

Car insurance: having an insurance agent or direct purchase
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Benefits of direct purchase

Fast online convenience

Direct purchase of car insurance is very fast and convenient. Anytime, day or night, you can go online and run the quote. 

It is a time saver because with the agent you have to provide all your personal information and you usually wait for a callback. If you are in a hurry, purchasing your insurance online is a great way to go. car insurance agents

Potential savings

It is possible to obtain a lower rate when purchasing car insurance directly. Since direct carriers do not pay an agent's commission, in theory the savings are passed on to the customer. 

One insurance company isn't the best or cheapest for everyone on its own. You should still do your research for which carrier is the cheapest for your exact situation.

Insurance agents are no longer mandatory in today's tech-driven world. Whether or not you need an agent, the motivation behind this is a personal preference for how you do business. 

If you are comfortable with insurance terminology and fully understand your policy, giving up an agent is an option. 

The smartest option is to shop for the best coverage at the lowest rate, friendly and responsive service, and a carrier that suits your personal preferences. cheap car insurance