Direct writer

A direct writer is an insurance company that sells its own policies without going through independent agents or brokers. In industry usage the term covers two models: companies that sell through employees or exclusive captive agents, and direct response insurers that sell to consumers online, through apps and by phone. In everyday use, "direct" usually means the second kind. GEICO, for example, built its business on selling directly to customers.

Cutting out the independent agent can lower distribution costs and gives the company full control of the customer relationship. Many large insurers now mix channels; Progressive, for example, sells both directly and through independent agents.

For shoppers, buying direct is convenient and lets you get a car insurance quote at any hour, but you do the comparison work yourself, and service usually runs through a call center or app rather than one local person. An independent agent can compare several companies for you, while a captive agent offers one company's products with personal service. No channel is always cheaper, so get quotes from more than one. The term is unrelated to direct written premium, an accounting measure of how much premium an insurer writes.