Independent vs. Captive

Spoiler alert: Our team at Spearpoint overwhelmingly supports Independent Agents. Yes, we may be slightly biased simply because we are Independent Agents ourselves. However, the decision we make to remain Independent Agents after decades of accumulated industry experience speaks for itself.

Before we break down why we believe it is best to work with an Independent Agent we should look at a basic description of each role.

Captive Agents: Insurance representatives who are only contracted to sell policies through one (1) insurance company.

Independent Agents: Insurance representatives who are contracted to sell policies through multiple (often numerous) insurance companies.

One of the best benefits of working with an Independent Agent is that you will be working with an insurance industry expert who has attained broad and comprehensive industry-specific knowledge about insurance coverage trends. Because Independent Agents work with such an array of rated insurance companies, they are regularly exposed to the accumulated knowledge from their industry peers and mentors (underwriters, adjusters, actuaries, marketing reps, etc.). Whereas, Captive Agents will have specific knowledge pertaining to the limited amount of policies and products available through their single company.

Another huge advantage to working with an Independent Agent is that when your insurance premiums increase at renewal an Independent Agent has the ability to explore the market for the same (or better) coverage at a more competitive price through a different company. Come on now people, let's be honest about this, premiums have and will increase regularly. We will explore the reasons why premiums can increase each renewal in a separate post. In contrast, when you work with a Captive Agent the only way they are able to lower your pricing is by lowering your insurance coverages, raising deductibles, changing "discounts", or various other methods leaving YOU more exposed than you were before.

The final benefit of working with an Independent Agent that I would like to point out in this post is that if you do end up changing your insurance company, you are able to maintain your existing agent relationship. Your agent will continue to represent YOU to the new insurance company. How awesome is that?! Unlike with a Captive Agent, where in this case if you change your insurance company you will lose your current agent and have to contact multiple insurance companies and numerous new agents just to find one that fits right for you.

We think we have made our point. If you are currently trying to decide what insurance company can truly help you find the coverage, service, and care that you need and deserve, do not hesitate and reach out to our team of licensed insurance experts today! We have decades of industry experience that we are waiting to put to work for YOU!

Thank you for reading. See you on the next post!