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Independent Insurance Agent or Direct Writer

Which is the right choice for you? Choosing between an independent agent and a direct writer is a big decision and deserves careful attention prior to purchasing insurance.

What is a direct writer? A company who doesn't use agents to distribute their policies is a direct writer, GEICO for example. As a consumer, you call GIECO direct and they help you with you insurance needs and handle writing your policy. There are no neighborhood offices to visit. All your questions and needs are handled through the mail, phone or fax.

An independent agent has a local office usually and as a consumer you can stop in for a face to face meeting. Any changes or questions can be handled on the phone or in person. Most independent agents have multiple companies to shop your insurance needs and find the right fit for your specific situation. If problems arise with the current company you're insured with, the agent can shop to a new company.

Making the decision between these depends on your tolerance and personality. You need to determine if you're a person who wants a particular person to deal with on a regular basis, makes changes often or might need special attention or if you don't care about personal attention and don't make changes regularly. Direct writers often claim to be cheaper because they don't pay agents commission. This can be true but not always.

There isn't a right or wrong choice. It depends on the consumer's needs and wants. There are plenty of pro's and con's for both sides.

The main thing is to check around before purchasing the policy and compare. Then make your decision.