Glossary

Independent agent

An insurance agent who represents several insurers and can quote and place your policy with whichever one fits your needs best.

Also called: independent insurance agent, insurance broker, broker

An independent agent is a licensed insurance professional who has contracts, called appointments, with several insurance companies. Unlike a captive agent, who sells one company's products, an independent agent can gather quotes from several insurers and place your policy with the one that offers the best mix of price and coverage. Brokers play a similar role, though in some states a broker legally represents the buyer rather than the insurer.

Some insurers sell only or mainly through independent agents, including Erie Insurance, Auto-Owners Insurance and Travelers, and many nonstandard auto insurers rely on them. Agents are typically paid commissions by the insurer, built into the premium, so there is usually no separate fee for their help, though some states allow broker fees.

The benefit is comparison shopping and advice in one place, plus someone to help with claims and policy changes. The limit is that an agent can quote only the insurers they are appointed with, and some large insurers do not sell through independent agents at all. To see the whole market, also check one or two direct writers or captive agents. The car insurance quote comparison worksheet helps you compare quotes on equal terms.

Last reviewed October 4, 2026

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Related terms

Captive agent An insurance agent who sells policies for only one company or insurance group, rather than comparing several insurers for you. Direct writer An insurer that sells its own policies without independent agents; in everyday use, a company that sells online and by phone. Car insurance quote An insurer's estimate of what a specific policy would cost you, based on the drivers, vehicles, coverage and discounts you describe. Bundling Buying two or more insurance policies, such as auto and homeowners, from the same company, usually in exchange for a discount on each. Managing general agent A specialized agency with authority to underwrite, price and often handle claims for an insurer, which carries the risk and issues the policies.

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Related insurers

Acuity Insurance Sheboygan, Wisconsin mutual in business since 1925 that sells business, home and auto insurance through independent agents in more than 30 states. Agency Insurance Company Hanover, Maryland, auto insurer selling personal, commercial and motorcycle coverage through independent agents in MD, PA, TN and VA since 1990. Arbella Insurance Quincy, Massachusetts, mutual founded in 1988 that sells auto, home and business coverage in New England exclusively through independent agents. Aspire General Insurance California-based nonstandard auto insurer, founded in 2013, selling low-down-payment policies through independent brokers in California, Arizona and Texas. AssuranceAmerica Atlanta nonstandard auto insurer founded in 1999 and private since 2013. It sells through more than 9,500 independent agents in 13 states, with no credit check. Auto-Owners Insurance Lansing, Michigan mutual founded in 1916 and sold only through independent agents in 26 states, with strong claims scores and no general telematics program.

Related tools

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