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At Berry Insurance, we love dogs. We have several in the office regularly including our very own Chief Barketing Officer Shredder, and VP of Puplick Relations Rider, and we’ve also been known to have a barketing intern or two visit on occasion.

Let’s be real - the only thing more annoying than having to file an insurance claim, is waiting for it to be paid out!

Unless you’re an insurance expert, deciphering every area of your insurance policy can be difficult. Even something as important as deductibles can seem confusing - whether it’s for your homeowners or car insurance policy.

It’s often said that comparison is the thief of joy.

Shopping for insurance can be overwhelming. Not only do you need the right coverage, but you also have to decide where to buy it from. From independent agents, captive agents, buying direct from insurance companies, and everything in between - there’s no shortage of options. With so many choices, how do you know what’s best for you? As an insurance agent and broker, our team at Berry Insurance is asked this question all the time. Keep reading to learn the key differences between each option, how they get paid, and how to determine which choice makes the most sense for you. Table of contents: What are the different ways to buy insurance? What’s the difference between an independent agent and a broker? How do insurance agents and brokers make money? Should I buy insurance directly from a carrier? Which option is best for me? What are the different ways to buy insurance? Insurance can be purchased several ways: Independent Insurance Agent An insurance agent represents (or has contracts with) several different insurance carriers, allowing them to: Shop for you Get you the best insurance policy for your needs Put your interests first. For example, an independent insurance agent can provide you auto insurance quotes from Safety Insurance, Mapfre (formerly Commerce) Insurance, and several others. This allows you to compare coverage and prices, and provides you an agent to work with directly during any claims. Captive Insurance Agent Unlike independent agents that represent multiple carriers, captive agents only work on behalf of a single carrier. This means that they can only provide you one quote, and cannot shop with any other insurance carriers on your behalf. For example, a State Farm agent can only sell you insurance from State Farm. Insurance Carrier/Buying Direct Instead of buying from an agent, you could purchase your policy directly from the insurance carrier. When you buy direct, you lose out on an agent to represent your best interests. For example, if you want a quote from GEICO, you can only get that by contacting them directly. This can be useful for some, but won’t provide multiple quotes, meaning you could lose out on additional coverages or savings from other carriers. To know which Massachusetts insurance carriers we recommend, check out this guide: 5 Best Personal Insurance Carriers in Massachusetts. InsureTech Some insurance carriers have partnered with various smart devices to allow you to obtain insurance estimates via the device. These are not firm quotes, but are able to give you an idea of costs. The downfall is that many of these are carrier-specific, and cannot be used to obtain multiple quotes at once. Associations Some associations have group discounts in place with certain insurance carriers. For example, if you are a Bryant University alumni, you might be eligible for a discount with Amica Insurance. Or if you have a Costco membership, you can obtain a discount through Ameriprise Insurance. Many insurance agents are also able to offer group discounts, so if you are active in any associations, be sure to let them know! What’s the difference between an independent agent and a broker? Sometimes in the insurance world, the terms “independent agent” and “insurance broker” are often used interchangeably. This makes sense, as both can: Obtain quotes for you from several insurance carriers Are paid via commission from the insurance carrier Have knowledge in a wide variety of insurance policies. (Though some insurance brokers may specialize in only one type of insurance policy – for example, health insurance.) However, an insurance agent has contracts in place with multiple insurance carriers and can sell the policies that they are contracted or appointed to sell. An insurance broker is typically someone who does not have a contract in place, but is still able to obtain quotes from multiple carriers. So why the distinction? Having the contract means that an insurance agent has the authority to issue your policy right away if you approve. A broker would not have that authority. There are some insurance agencies that operate both as independent agents and brokers. This means that they have contracts in place with several insurance carriers, and they also have relationships to be able to obtain quotes from many carriers that they do not have a contract with. Finding an agent like this allows you the broadest spectrum of choice in your insurance buying decision. How do insurance agents and brokers make money? Most insurance agencies and brokerages provide their services for free to their clients, as they are paid on commissions from the insurance carrier. That being said, many times the individual insurance agent or broker you work with is paid a salary. How an individual is compensated could be an important distinction for you to determine if they are motivated to represent your best interests first. Why? If an individual is paid a salary, they don’t have a financial interest in which insurance company they issue your policy with. But if they are paid on a commission, they could be more inclined to put your policy with an insurance company that pays a higher commission rate. Not everyone acts like this, but unfortunately it does happen. Knowing that the person you work with has your best interest at heart is vital to your decision. Should I buy insurance directly from a carrier? If insurance agents and brokers are paid a commission from the insurance carrier, you might think then that it would be cheaper for you to buy your insurance directly from the carrier. In fact, it may be quite the opposite. When you buy direct, you lose the advantage of choice. This means that you will now have to do all the shopping yourself, costing you time and effort in the process. You will also lose an unbiased expert to explain the coverage options and choices available to you. An independent agent will be able to thoroughly review the differences in the quotes you obtain so you can feel confident in whatever decision you make. When you buy direct, the insurance carrier cannot compare their quote to another, leaving you to figure it out on your own. Lastly, when you buy direct, you eliminate having a dedicated person there for you when you have questions, claims or need to review your coverages. Also, if you have a more complex situation for which you need insurance, buying direct may take you longer as you’ll need to figure out who the right carrier is to handle your needs. Okay, so which option is best for me? Unfortunately this answer will depend on your specific situation. If you already have an understanding of what coverages you need and want to be able to do your own research and comparisons, then buying direct might be the best option for you. However, if your insurance needs are more complex and you want guidance through the buying process with multiple quotes, then buying from an insurance agent is your best choice. In the end, the decision comes down to what is most important to you, your needs and your preferences. Being a smart shopper If you’ve struggled to compare insurance options, then you know how daunting it can feel to find the perfect coverage at the right price. Now that you know more about the pros and cons of buying from an agent vs. buying direct, you can make an informed decision while shopping for your next insurance policy. If you’re looking for expert guidance and personalized recommendations, look no further than our team at Berry Insurance! Contact our team today, or fill out our free personal insurance worksheet below to get started on your buying process!

Currently shopping around your insurance policy or considering leaving your current carrier? With inflation affecting insurance rates and premiums across the board, it’s become common practice for many policyholders to shop around their policy as soon as they can in order to hopefully obtain the cheapest available policy.