Difference between working with a Broker vs Captive Agent


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When it comes to buying insurance in California, you have two options: working with a captive agent or working with an insurance broker. Captive agents work for a specific insurance company and can only offer you policies from that company. Insurance brokers however, work with multiple insurance companies and can offer you a wide range of options. In our opinion, working with an insurance broker is often a better choice than being with a captive agent, especially in California. Here are some reasons why:

  1. More Options: Insurance brokers have access to a wide range of policies from different insurance companies. This means they can shop around to find the best policy for your needs and budget. Captive agents, on the other hand, can only offer you policies from their company, which may not be the best fit for you.

  2. Unbiased Advice: Since insurance brokers work with multiple companies, they don't have a vested interest in selling you policies from a specific company. This means they can provide you with unbiased advice on which policy would be the best fit for you. Captive agents, on the other hand, are incentivized to sell you policies from their company regardless of whether that is what is best for your particular business. Let face it, not all businesses operate in the same manner and having more options help to place your business with the right carrier at the right price.

  3. Cost Savings: Insurance brokers can often find you better deals than captive agents. This is because they have access to a wider range of policies and can compare prices across multiple carriers. Whereas, captive agents can likely only offer you policies from their company, which may not be the most cost-effective of solutions.

  4. Personalized Service: Insurance brokers will provide you with personalized service and support. They help you understand your policy options, answer your questions, and provide ongoing support throughout the life of your policy. Captive agents may not have the same level of flexibility to provide personalized service since they are tied to their company's policies and procedures.

As you can see working with an insurance broker like Diamond Legacy Insurance Services is likely a better choice than being with a captive agent in California. We can offer you more options, unbiased advice, cost savings and most importantly, the personalized service you should expect for all of your insurance needs. If you're in the market for insurance, want to explore your options or just want to review your coverages consider working with Diamond Legacy Insurance Services and allow us to make sure you have the best policy for you. Contact us today!

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