local auto insurance agents and brokers

Why Use an Independent car insurance agent Near me

Savvy consumers use independent car insurance agents to get the best rates, and how you can too.

You might be surprised at the Mind-blowing savings people receive when shopping online for a local independent car insurance broker.

But, before we get started, you might have some questions about what insurance brokers do, exactly?

Let’s get some knowledge and learn what independent insurance agents do to help you find affordable insurance with a local car insurance agency.

What are Independent Insurance Agents?

Independent insurance agents or brokers are agents that are not exclusive to any one insurance company.  

As Independent car insurance agents, they are not required to sell any one company.  

This gives brokers or independent agents the flexibility to offer many of the best insurance companies at the most affordable rates.  

More choice gives you the opportunity for more savings, it's really that simple.

insurance brokers vs insurance agents

Independent insurance agents are also known as Insurance Brokers

 Insurance agents that are independent and not employees of any insurance company.  

You will find independent insurance agents represent many of the same insurance companies offered by local insurance agents.  

The biggest benefit is the time savings individuals and business will find.  

Because the selection of insurance companies for personal, commercial and life insurance is so comprehensive, you don't have to contact several agents for quotes.  

An independent insurance agent may represent 5 to 10 insurance companies. 

You can see how independent insurance agents can be a real timesaver when shopping for affordable insurance.

Get Quotes Now!

Auto, home, motorcycle, boat, RV, commercial auto, golf cart.

Insurance Agent Vs Insurance Broker

the difference between Insurance Agent and insurance broker?

It seems that the "term" Insurance Agents and Insurance Brokers are used in many of the same conversation when discussing insurance.  

There are some differences you should understand between insurance agents and brokers.  

Captive vs independent insurance agent

Insurance Brokers are independent agents that do not work for anyone insurance company.  Insurance Brokers are free to work with many insurance companies.

Insurance Agents, such as Allstate, Farmers, AAA, State Farm represent only one company. 

Independent insurance brokers contract with insurance companies directly to sell each company's insurance products.  Once approved by each insurance company, they can sell in multiple states and help customers around the country, not just locally.    

Insurance Agents are bonded to one company and will recommend that carrier insurance products only.  Insurance agents will typically only sell in their local territory and have no flexibility to offer other insurance company products or services.

Example: Insurance Brokers Group contracts with multiple carriers like Safeco, The Hartford, Progressive, Nationwide, Liberty Mutual and more.

InsuranceBrokers.com is authorized to sell auto, home, commercial, life, umbrella insurance and other insurance products offered by those companies.

Having the flexibility to shop multiple insurance companies. A Local Independent Insurance Broker gives customers more options and a chance at lower insurance cost.  

#1 reason customers LIKE using an Insurance Broker - saving money and getting quality insurance.

In many cases, bundling auto and home insurance together is a smart way to save money.

But, NOT always...

Some insurance companies may be very competitive with auto insurance, but not with home insurance.  

Having flexibility allows independent insurance brokers the ability to mix and match different companies for the best insurance rates.

What is the difference between insurance agents and brokers

Using A Broker For Insurance

How Brokering Insurance might be a better option

Insurance Brokers are not captive to any one company, which means they are not required to sell just one company or product.  The benefit to you means more choices and more opportunity to save money! 

  • This freedom allows an Insurance Broker to work for you, without favoritism, towards any one company.
  • Insurance Brokers are considered independent agents for each company they represent but called brokers because they are representing multiple companies.

Insurance Brokers are paid a commission from the insurance company for their service and free for the consumer.  

Insurance Brokers offer value by saving time, money and energy when searching for affordable insurance.  Let's get started checking for lower premiums?

There are 2 types of Auto Insurance Agents

1. Captive Insurance Agents

The first kind of insurance agent is known as a captive agent.  Captive insurance agents work directly as an employee of the insurance company or are “captive” to only sell that company's insurance products like: auto, home, life and umbrella insurance.  

The captive car insurance agent is limited to only provide quotes for that company and is not allowed to search or even recommend a more affordable insurance company.  

Most people are familiar with captive insurance agents and didn’t even realize it.  Insurance companies like AAA, Allstate, Farmers, State Farm, GEICO, American Family and others.

2. Independent Insurance Agents (aka Insurance Brokers)

Independent Car Insurance Brokers work for the customer and not the insurance company as an employee.  

Local car insurance brokers will shop multiple companies to find the best auto insurance rates.  Some may charge a fee, you'll need to ask, but many rely solely on the commission earned from the sale.  Acting as the middleman between the insurance carriers and you to simplify shopping.  

The rates are the same regardless if you call the car insurance company directly or choose to use a car insurance brokerage

Finding a local car insurance broker is easy - just search online for a local car or auto insurance broker near me.  

Independent Insurance Agents

There are many great insurance companies.  But,  if you are trying to get lower insurance from a captive Insurance agent you’re out of luck.  

About the only thing they can offer is changing your deductibles or lowering your liability limits.

Both options may seem like ways to lower your insurance premium until you have a claim.

  • The other type of insurance agent is called an independent insurance agent.  Independent insurance agents are basically the same and insurance brokers. 
  • But, because most people are not as familiar with the term insurance broker, they also say someone is an independent insurance agent.  Same situation would apply being independent, meaning not tied to any one insurance carrier or required to push a product you don’t need or want.

Local Auto insurance agents near me

Some independent insurance agents sell in multiple states, like Insurance Brokers Group.  Or, you can look for a local insurance broker near you for rate comparisons.

Depending on what state(s) an insurance broker is licensed, and what insurance companies they represent.   You can simply call or go online to shop, compare and buy insurance

Where in years past, there was an insurance agent on every corner.  Today, people don’t have the time or energy for a sit-down meeting and review with several agents.  

Ask a friend or family member for a referral to a local independent insurance agent in your area for quotes.

Jump start your car insurance shopping by going online. 

But, be careful...

Sometimes you reach these online insurance marketing websites and receive a crushing amount of calls and emails from agents buying insurance leads.  

You could receive calls from 5 to 10 agents non-stop, even after you make a purchase to quote your insurance.

Sadly, some websites are deceptive in their marketing and give shoppers the impression they’ll be contacted by just one company.  

How can you avoid this problem?

If you notice several company names mentioned like Allstate, Farmer, State Farm, Esurance, etc. that will tell you they are selling “leads” to a captive and independent agents alike.  

That's a sure way to spot a marketing company reselling your information to multiple insurance agents.

Is using a car insurance broker worth it?

The short answer is yes.  

Why spend hours and hours searching for better auto and home insurance when an insurance broker can do the same task in minutes?  

Because insurance brokers are independent, that can shop multiple companies without bias towards any one insurance carrier.

Plus, you get the advantage of them negotiating for better rates at your renewal without having to contact other companies every year.

Questions you should ask a car insurance agent near you

Call and speak with the insurance agent directly and ask if you are going to be receiving calls from multiple insurance agents or just the person you called.  

1. Ask what companies they represent in your state.

2. How long have they been in business?

3. Will they automatically shop for lower rates at renewal?

Comprehensive Auto Insurance 


Getting quotes is important when shopping for affordable insurance and independent insurance agents will give you several quotes.  Make sure they offer comprehensive auto insurance plans that meet your needs. 

  • Do you need comprehensive and collision coverage?
  • Does the quote include a rental car if involved in an accident?
  • What about towing and labor coverage?
  • Is there a loan or lease GAP coverage? (if your "new" vehicle is worth less than the current loan amount)
  • Do they have accident or ticket forgiveness in the quote?

Insurance quotes are more than just a cheap price from a local insurance agent.  Make sure they are offering all the coverage you need or may need. 

One of the worst feelings after filing an insurance claim only to find out you didn't have coverage for that claim. 

Something as inexpensive as rental car coverage can typically be added for about $1 per month.  

You will never appreciate the small investment until you find out your car will be in the shop for repairs for the next 30 days waiting on parts and you get a $900 rental car bill.  

Do the math $1-month x 12 months = $12.  $900 rental car / $12-year rental car coverage = 75 years, you would have to go with no need a rental car. 

Yes, having a comprehensive auto insurance plan is not only smart, it can save you money as well.

Benefits to use an Insurance Broker vs. Agent

insurance brokers near me

There are small differences, but they can make a big change in what you pay for insurance.

Insurance agents and brokers both help you (the insurance buyer) purchase insurance.  
They are required to be licensed in the state(s) they sell insurance.  
They are also regulated by the law of each state by the respective department of insurance.  

The difference is who they represent... You or the insurance company.

What do Insurance Brokers do?

Insurance Brokers works for the consumer vs. Insurance agents who work for the insurance company.  

Brokers are very knowledgeable about both personal and commercial insurances.

Utilizing state-of-the-art rating software to find the most affordable insurance policies to fit your needs and budget.

An Insurance Broker can save time, money and energy when shopping for lower-cost insurance.

Do you want some to represent you
or the insurance company?

Local Insurance Agent

Insurance agents have a responsibility for the insurance company, not you.  Agents act as the insurance company representative in the buying process as they are typically salaried employees.   Most insurance agents are “Captive” to represent only one company, such as Allstate, State Farm, Farmers, etc.  Because they contracted as captive insurance agents, they cannot discuss or recommend other insurance companies.  

Check Local Insurance Agencies Near Me for affordable insurance.

What Makes up The Cost of Auto Insurance Rates?

The insurance premium a motor vehicle owner pays is usually determined by a variety of factors, including the type of covered vehicle, the age and gender of any covered drivers, their driving history, and the location where the vehicle is primarily driven and stored. Credit scores are also taken into consideration. Most insurance companies offer premium discounts based on these factors.

How do Independent
Insurance Agents
Get Paid?

All insurance companies vary on how they pay independent insurance agent's commission and how much per policy as well.  

Commissions earned are paid directly from insurance companies to the insurance broker.  

This also gives brokers the opportunity to work with multiple insurance companies without passing the cost on to you.

Do Insurance Brokers charge a fee?

how independent insurance agents get paid

Insurance brokers are paid a commission based on the product you purchase.  It can vary, depending on the type of insurance like home, auto or business insurance.  

Commercial insurance may pay a higher commission since they have complex underwriting requirements and is time consuming to find the right company.  

They are paid for new and renewal business.  

The service is FREE to you, but they are required to disclose any potential brokerage fee before making a purchase.  

InsuranceBrokers.com does not charge a fee for our service.

Some brokers charge a fee and here's why.

Another common question when folks are shopping for auto insurance.  Is there a fee or charge to use an independent insurance agent?  

Most insurance brokers or independent agents do not charge for their service.  

If an Insurance Broker would charge a broker fee, it would most likely be for a hard to place insurance policy (High Risk Driver).

Hard to place individuals who may have trouble finding insurance anywhere.  There may a lot of research required to find a company willing to take the (risk) driver.

More commonly, you'll find broker fees for complex commercial insurance policies.  These policies can take days or weeks just to quote.

Some people have very poor driving records may find it difficult to find affordable insurance anywhere.  

Because there are very few companies willing to help these individuals, brokers are their only alternative.  

Higher Insurance Rates For Poor Driving Habits

High insurance rates based on driving habits

How A Independent Car Insurance Agent Near Me Can Help

Rates can be extremely expensive for those types of drivers. Consequently, these policies are canceled shortly after being issued.  

In many cases, the policy is bought solely to renew their license plates and then canceled.  

Because local, independent car insurance agents work on commission and work very hard to find the companies, a fee may be charged. 

Since the insurance broker works on commission, they would be required to return any money earned if the policy is canceled.

But, if you are like the 99% of the population that maintains a good driving record with continuous insurance coverage, this would not be the case.  You would not be charged a fee, but make sure to ask just in case. 

Why Choose an independent insurance agent?

1. They are independent from any one insurance company

2. More choice of companies

3. 9 out of 10 times lower insurance premiums

4. Same service you would receive from an agent

5. No need to shop in the future

6. No additional cost or fees

How do I find insurance Brokers Near Me?

Insurance brokers are in any city you would find insurance agents.  

The easiest way to locate a local insurance broker is online by simply searching independent insurance agents near me or insurance brokers near me.  

Most local brokers are licensed in multiple states, so if you have property or vehicles, other states you can most likely use the same broker.

Simple search terms like:

Or, you can simplify your life and get your insurance quotes from one of the Top Personal Insurance Brokers in the US and Click HERE for quotes now.

Why use InsuranceBrokers.com

Our automated software gives us the ability to shop multiple companies at the same time.  We also review policies at renewal for more affordable insurance rates.  

Our investment in technology is a real time-saver for our customers, but we still provide the personal service you expect.  Our experienced brokers will guide you through the process and help you find the best coverage for your needs.

When it comes to insurance, it can be overwhelming trying to navigate all the different companies, policies, and prices. That's where InsuranceBrokers.com comes in. We understand that finding the right insurance coverage can be time-consuming and confusing, which is why we have invested in advanced technology to streamline the process for our customers.

By using our automated software, we can compare multiple insurance companies at once. This means you don't have to spend hours researching and filling out countless forms on different websites. With just a few clicks, our system does all the work for you, presenting you with a comprehensive list of options tailored to fit your specific needs.

Can A Insurance Broker find affordable insurance?

Because of our experience helping customers across the country, Insurance Brokers.com is a sought-after resource for the media and the public. 

We have contributed to many news and online resources such as NBC News, US News and World Report, Newsday, Realtor.com, Reviews.com, TheStreet.com, American Express, Forbes, and many more publications.  

They rely on our knowledge and expertise to provide the best insurance advice for their readers, and we can do the same for you.

About the Author

John Espenschied is a long-time veteran of the insurance industry. He has worked in various positions within the industry for over 20 years, and for the past 15 years, he has been the owner and operator of Insurance Brokers Group, an independent insurance agency. John loves advising people on the insurance that meets their needs and goals, whether it be for personal or commercial purposes.

John is married to Melissa, and they have three children together, as well as three grandchildren. In his spare time, John enjoys golfing and playing in the golf league, biking to their local brewery along the Missouri river, and going on motorcycle rides when the weather is nice.

John Espenschied

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