What Does "Independent Agent" Mean?

In this newsletter, on our letterhead, and on our web site you probably noticed that we refer to ourselves as "Independent Agents". Although very few ask, many clients are not 100% sure what this term means. Without going into too many details, let me provide some background information.

Insurance companies use different sales distribution channels to sell their products. In the industry, the main types are "direct writers", "captive agents", and "Independent agents" (some companies such as Progressive us a variety of channels).

GEICO is a good example of a direct writer. They use their own employees to sell and service their insurance products. Often times you work with a call center in place of a single representative. Although premium rates may be slightly lower, customers sacrifice an agent relationship to save a few dollars.

State Farm and Allstate are good examples of using captive agents. In this channel, an agent can only sell State farm or Allstate Insurance products. This channel works well for customers until the carrier raises rates or becomes difficult towork with. Since the agent cannot represent other insurance companies, customers have to change agents to switch to a new insurance company.

An Independent agent represents multiple insurance companies and works for their client to obtain the best coverage and rates. This channel is designed to offer a high level of customer service during and after the initial policy purchase and allows customers to build relationships with their agents.

So what are the benefits of using an Independent agent? While I can't speak for all Independent agents, at Zingen & Braun Insurance Agency, we believe that the Independent agent works for his/her clients, not the Insurance Companies. There are three kep areas where we work for you:
 
Rate & Coverage : We check your policy upon each renewal to ensure that your current insurance company is offering a competitive rate, and we review your coverage. If another company of equal quality we represent is offering a more competitive rate or if we feel you should make changes to your coverage, we will let you know.
Claims: Our office has a dedicated, full-time claims representative who keep us apprised of what is going on with your claim. We work to make sure the insurance company is providing you with fair and efficient claim service and, if necessary, represent your interests in the event of a problem or disagreement with the insurance company.
Service: This is the cornerstone of the Independent agent. Our clients want to buy insurance from us because they expect prompt, friendly customer service when they need it. They don't want to speak to a different person every time they call with a question; they want a single point of contact. Also, clients want to build a strong, personal relationship with the person who is protecting some of their most valuable assets that will last for years to come.