Insurance 101

Texas Insurance 101

Glossary - Common Insurance Terms

Independent Agent vs. Captive Agent

A Captive Agent is a person who represents only one insurance company and is restricted by agreement from submitting business to any other company unless it is first rejected by the agent's captive company. Therefore are restricted to shopping around.  Examples are: State Farm, Farmers, Nationwide, and Allstate.

VS.

An Independent Agent procures insurance quotes from a variety of insurance companies to give their clients the best coverage and pricing available.  Once a client of an  independent insurance agency the client can rely on that agency to notify them when their policy(ies) expire, handle the day to day changes required on those policies and in the event of a claim be assured that it is settled quickly and fairly.  In the event an insurance company were to cancel or refuse to renew a policy, the Independent Agent can procure duplicate coverage with another carrier without the client having to find another agent.