Three Ways to Buy Insurance — Compared

When it comes to buying insurance, you have three main options: independent agents, captive agents, and online direct carriers. Each has pros and cons. As an independent agency, we're admittedly biased — but we'll give you the honest comparison so you can decide for yourself.

Option 1: Independent Agents

What they are: Independent agents represent multiple insurance carriers. They can quote and bind policies from many different companies.

Pros:

• Compare rates from 10–50+ carriers simultaneously
• No loyalty to any single carrier — they work for you
• Can find specialized coverage for unique situations
• Local knowledge and personalized service
• Help with claims advocacy

Cons:

• May not represent every carrier (some sell direct-only)
• Quality varies — not all independent agents are created equal

Best for: Most homeowners and business owners, especially those who value savings and service

Option 2: Captive Agents

What they are: Captive agents represent a single carrier (State Farm, Allstate, Farmers, etc.).

Pros:

• Deep knowledge of their specific carrier's products
• Local office and personal service
• Streamlined claims with their carrier

Cons:

• Can only offer one carrier's rates
• If their carrier's rate isn't competitive, they can't help
• Limited options for bundling or specialized needs

Best for: People who already know they want a specific carrier's product

Option 3: Online Direct Carriers

What they are: Insurance companies that sell directly to consumers online (Lemonade, Root, Jerry, etc.).

Pros:

• Quick and easy to quote
• No agent interaction required
• Sometimes lower premiums (no agent commission)

Cons:

• No personalized advice — you're on your own to determine what you need
• Claims processes can be frustrating without an advocate
• May not offer comprehensive coverage options
• Customer service is often call-center-based

Best for: Simple coverage needs with tech-savvy buyers who don't want in-person service

The Bottom Line

If price is your only concern, online carriers can sometimes win. But if you want the best combination of coverage, price, and service — especially for complex needs like bundled policies, business insurance, or multi-property coverage — an independent agent delivers the most value.

See the Difference

Learn more about why independence matters, or get a free comparison quote and see how our rates stack up against your current provider.