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Independent vs. Captive vs. Direct Insurance: How Choosing an Independent Agency Puts You, the Shopper, on Top

by | Feb 11, 2022

Shopping for insurance can feel overwhelming, with numerous options and channels. However, one insurance shopping option consistently puts shoppers first: independent insurance agencies. In this blog post, we’ll explore the differences between direct, captive, and independent insurance channels, providing detailed information, statistics, and insights explaining why independent agencies like Page Insurance offer the ultimate shopping experience.

Direct Insurance: Quick Quotes, Limited Options

Direct insurance channels allow you to purchase policies directly from insurance companies, usually online or through call centers. While this method may seem convenient and fast, it comes with several drawbacks:

  1. A limited selection of products: Since you’re dealing directly with a single insurer, your options are restricted to their offerings, which may not suit your specific needs.
  2. No objective advice on coverage: Direct insurance providers have a vested interest in selling their policies, so you may not receive unbiased recommendations.
  3. Potential for higher premiums due to advertising and operational costs: Insurance companies that rely heavily on direct sales often spend more on marketing, which can result in higher premiums for policyholders.

Captive Insurance: Local Agents, Limited Choices

Captive insurance channels provide local agents who work exclusively for a single insurance company. Although they offer personalized service, their limitations include:

  1. Biased advice, pushing their company’s products: Captive agents are obligated to promote their employer’s policies, even if they aren’t the best fit for your needs.
  2. Time-consuming to shop each company individually: To compare offerings from multiple captive insurers, you’ll need to speak with multiple agents, which can be time-consuming and frustrating.
  3. Declining market share: According to the Independent Insurance Agents & Brokers of America (IIABA), captive agencies’ market share has been steadily declining, with independent agencies now accounting for over 35% of the market.

Independent Insurance: The Ultimate Insurance Shopping Experience

Independent insurance agencies, like Page Insurance, offer a one-stop shopping experience that puts shoppers first. By working with multiple insurance companies, independent agencies provide:

  1. A wide range of products and coverage options: Independent agencies can access policies from numerous insurers, allowing them to find the perfect fit for your needs.
  2. Unbiased, objective policy advice: Independent agents work for you, not the insurance companies.
  3. Competitive rates and lower operational costs: With the ability to shop multiple carriers, independent agents can help you find the best rates, and they often have lower overhead expenses, leading to more competitive premiums.

Finding the Right Independent Agency for You

To find the perfect independent agency, consider the following factors:

  1. Their knowledge of your state and local needs: Look for an agency with experience in your region and an understanding of local risks and regulations.
  2. Access to quality insurance companies and products: Ensure the agency partners with reputable insurers and offers a wide range of coverage options.
  3. Good customer service and investment in technology: Choose an agency that prioritizes customer satisfaction and utilizes modern technology for efficient service.

Could Page Insurance Be Right for You?

Page Insurance could be the perfect fit for you if you live in Idaho, Utah, or Wyoming. By choosing an independent agency like Page Insurance, you, the shopper, come out on top with the best coverage, personalized service, and competitive rates. Don’t hesitate to call us to learn how we can help you with all your insurance needs. Experience the ultimate insurance shopping experience that puts you in the driver’s seat!


John Page, President of Page Insurance, has been a driving force in the insurance industry since 1998. As a licensed agent in Property & Casualty, Life, and Health insurance, John has won numerous awards for agency management and works tirelessly to improve agency operations with the clients in mind. He is passionate about building and investing in the Page team of experts, ensuring they deliver top-notch service to clients. In his free time, John enjoys snowmobiling, gaming, reading, and traveling with his wife and three kids, who are the loves of his life. John is a big hockey fan who loves rooting for the local Idaho Falls hockey team.