Captive agent

A captive agent represents a single insurance company or group and can sell only its products. Several of the largest auto insurers, including State Farm, Farmers Insurance and American Family Insurance, sell mainly through exclusive agents. The agent may run a local office as an independent business, but the policies all come from that one company.

Captive agents know their company's products, discounts and claim process well, and they can handle auto, home, life and other coverage in one place, which makes bundling easy. They are typically paid commissions by the insurer, so you do not pay them a separate fee.

The limit is choice. If the company's price for your situation is high, a captive agent cannot offer another insurer's rate, although some can place business their company declines through an affiliate or brokerage arrangement. An independent agent can quote several companies, and insurers that sell online or by phone, often called direct writers, skip the agent altogether. To see the market, get quotes through more than one channel; the car insurance quote comparison worksheet helps you compare them on equal terms.