Independent Agent vs Direct Writer = Independent Agent Wins!!!

  Choosing Between an Independent Insurance Agent and Direct Writer

Choosing between an independent agent and a direct writer is a big decision and deserves careful attention prior to purchasing insurance. So, what's the difference between the two?

                                A Direct Writer

Who is a direct writer? A direct writer is an agent who distributes policies for only one insurance company. Examples of these companies include Farmers Insurance, State Farm Insurance and Allstate Insurance.

The direct writers for those companies and others like them only represent that company. That's it. You only have one insurance company to choose from when you deal with them.

                What about Direct Writers and Claims?

Can that affect the way claims are handled? It may. If the policy holder is unhappy with their claim outcome, a direct writer might be reluctant to jeopardize their relationship with their employer by fighting the claims department.

For example, will the direct writer go against a claims manager, or VP of Claims to fight for a claim? Will the direct writer want to be on the "radar" at a company meeting when discussing "claims issues"? They might not.

And that could be when you really need your insurance agent the most.

                                Independent Agents

Most independent agents have multiple companies to shop your insurance needs. This makes it more likely that they will find the exact fit for your specific situation.

And, if problems arise with your current insurance company, the agent can easily shop your insurance to another carrier.                         

Independent Agents and Claims

If there's a claim issue with your current insurance company, an independent agent will go "to the mat" for his/her customer. They know that if ill feelings arise from the claims adjustor, it won't affect the agent's ability to earn income. 

What can affect an independent agent's income is a policy holder's bad claim experience being spread around town. So, independents tend to take special care when asked to look into a claim.

                                How to Decide

If you feel your insurance needs will change very little and you're comfortable with one insurance option, then a direct writer may be right for you.

If you foresee changes on your insurance landscape and you're the type that likes many options available to deal with these changes, then an independent may be a better fit.

There isn't a right or wrong choice. It depends on the consumer's wants and needs. There are plenty of pro's and con's for both sides.  And there are excellent insurance agents playing in both arenas.