Buying Insurance Direct vs. Indirect: Which Is Better?

There are a handful of avenues to choose from when deciding to buy insurance. You may choose to work with insurance agents or purchase an insurance policy directly from the insurance company. The option you choose solely depends on your individual needs. Consider the pros and cons of each method to make the most informed decision for your home or business.

Advantages of Buying Insurance Through an Agent

Are you new to buying insurance? Consider working with a hardworking agent to help along the way. Insurance agents guide you through the process, helping you in the right direction based on their industry expertise and experience and your individual needs.

Two types of insurance agents include captive agents and independent agents. Captive agents sell insurance for one specific insurance company, while independent insurance agents work for an agency that sells different insurances from multiple companies. Whether you choose a captive or independent agent, you want to be sure you’re getting the best bang for your buck — the most coverage at the most affordable price for you. That’s where an insurance agent can help.

Insurance agents will:

  • Help you meet your needs: Agents ensure you’re purchasing the right amount of insurance coverage to meet your individual, family or business needs.
  • Explain your options: Your agent will thoroughly explain your insurance options to help you understand the variety of insurance terms and policies available to you.
  • Offer local insight: Many agents are local to you and will know the unique needs and requirements of where you live or where your business is located.
  • Be there when you need them: Whether you have a last-minute question or need some extra insight, they’ll be there to provide the help you need when you need it.
  • Cut through red tape: Agents can provide the help you need to move through red tape if you are trying to get coverage during a crisis, such as car insurance for a car crash. They’ll fight for you to help you get the money you need from an insurance company.

If you choose to work with an independent agent, they’ll help you compare prices from various insurance companies so you can walk away with a suitable policy that offers the best value for your needs.

Things to Consider When Buying Insurance Through an Agent

When you buy insurance through an agent, you know you’re receiving all of the knowledge and insight you need to make an informed decision about your insurance policy options. However, it may not always be the quickest method to buy insurance.

Be aware of the following while working with an insurance agent:

  • Communication takes time: Since you’ll communicate with the insurance company through your insurance agent, some processes may take a little longer than they would if buying directly from the provider.
  • You’re limited to your agent’s companies: Agents work with a specific set of companies, so you will only receive insurance quotes from those companies your agent has a working relationship with.

Advantages of Buying Insurance Directly From the Company

If you choose not to purchase insurance with the help of an insurance agent, then you’ll be purchasing the insurance policy directly from the company. This is typically the quickest way to obtain coverage since you don’t have to wait for responses and quotes to come back from your insurance agent.

Benefits of buying insurance directly from a company include:

  • Processing speed: Working directly with a company is usually a fast and efficient way to obtain the coverage you need when you need it.
  • Convenient features: Many insurance companies let your browse, compare and purchase insurance policies online or through convenient contact portals.
  • You make the decisions: Working directly with a company means you have the power to choose which providers you want to consider and are not limited to your agent’s roster or expertise.

If you choose to purchase insurance directly, it could streamline the process because all communication and quotes will come straight from the company to you.

Things to Consider When Buying Insurance Directly From the Company

Although purchasing insurance directly may be a faster option, be aware of the following:

  • It’s not as personal: Working without an agent means you don’t get the same personalized experience, which is often the best way to accommodate all your needs and budget constraints.
  • Help can be challenging to receive: If you need assistance during the quoting and buying process or have questions about your policy after the purchase, you will have to reach out to the company’s customer service office for support, which could take time and may not always offer the best results.
  • Opportunities may be limited: Some companies choose to sell certain policies or coverage options through agents only. By skipping the agent, you may miss out on a great deal.
  • You won’t get personalized service: If you need a custom plan, you may have to rely on a customer service representative to help you. These representatives are not always qualified to provide you with the unique help and expertise you need, especially if you operate a local business. You may end up with an insurance policy that does not have sufficient coverage or is not the best fit for your needs.

When you forgo an insurance agent, you are missing out on the knowledge and expertise that can personalize your buying experience and ensure you walk away with the best coverage at the right price. Without an agent, you won’t have a specific person to turn to with your insurance-related questions. If you’re shopping for a policy from a company website, you may also miss out on the quality offers that smaller insurance companies have, such as the personalized policies from Strock Insurance.

Insurance Agent vs. Direct — Which Method Is Right for Me?

Purchasing insurance directly or through an agent can both be great options — it all depends on your needs and priorities. If you are looking for a quick turnaround and don’t mind going through customer service representatives for help, you may find success with buying insurance directly. If you want personalized, informed and attentive service, an insurance agent is the best option for you since they offer custom insights based on your needs, budget and location.

Request a Quote From Strock Insurance Today

Strock Insurance is a locally owned and operated insurance company serving Camp Hill, Harrisburg, Lebanon and nearby areas in Pennsylvania. If you need an insurance agent, we offer personalized services, outstanding customer service and competitive pricing for your personal and business insurance needs. Request a quote today to learn more!