Insurance Agents come in many shapes and sizes. In general, insurance agents assist potential insurance buyers in the process of evaluating which insurance products will be the best fit for their needs and budget. This can be done over the phone or in person at a meeting at the insurance Agent’s office or at the customers home. These are all common methods of interacting between insurance agents and insurance buyers.

Independent Agents/Brokers

An independent Agent/Broker is a licensed insurance producer who is contracted to sell insurance under their own license. This insurance producer will use their own credentials and license number to assist the customer in finding the most appropriate insurance product for their needs and their budget. Then, the Independent Agent/Broker will usually assist the customer in submitting the application for insurance to the insurer/insurance company.

Many Independent Agents are brokers, which means they sell for multiple insurance companies. This gives the Insurance Agent/Broker the flexibility to shop multiple insurance company portfolios and compare and contrast different types of insurance products offered by different insurers.

Insurance Agents often get paid a commission for assisting a customer in purchasing a policy. While this at times may deter a customer from working with an Insurance Agent/Broker, it is important to remember that most insurance agents have pay that fluctuates based on the effectiveness and retention of the products that they sell. This means, if an Insurance Agent/Broker is selling policies that more often than not are the appropriate fit for the customer, they policy will naturally remain in force for a longer period of time, resulting in higher compensation for the Insurance Agent/Broker. This creates an incentive for the Insurance Agent/Broker to help the customer find a policy that is a good fit, vs targeting the policy that costs the most amount of money.

In addition, Insurance Agents/Brokers have a fiduciary responsibility to assist the customer in finding a policy that is the right fit for the customer with regards to their needs and their budget.