Buying Insurance Direct vs. Agent: One Way Proves Cheaper

Clearsurance.com recently published a comparison between buying insurance direct or through an agent. This comparison revealed that a driver’s option could save $50 or more every month. 

Surprisingly, the best option isn’t universal, and the unique situation of each policyholder will indicate which is best.

Buying Insurance Through an Agent

Understanding each option and what it offers is critical to determining which is best. An agent is a person. Some agents are captive and represent one insurance agency. Other agents are independent and can connect drivers with several different insurance providers.

Pros of Using an Agent

An agent can answer questions. That’s one of the biggest advantages of using an agent. People who are unsure of what they need and what’s available can learn a lot by talking to an agent who knows the law and understands how different people depend on insurance policies. 

A policyholder can build a relationship with an agent, making it easier to ask follow-up questions and make changes to a policy. Many customers appreciate speaking directly with an agent they already know when it’s time to file a claim. 

An agent can provide advice to help drivers purchase the right policy so they have the protection they need with no gaps in coverage.

Cons of Using an Agent

According to Clearsurance.com, one of the downsides to using an agent is that they could pressure customers to buy more insurance products than they need. If an agent is paid based on commission, they’ll make more money the more insurance they sell.

Using an agent can also lead to delayed services. If a transaction depends on a person, a customer may be delayed because an agent is out of town, or it’s the weekend, or outside of business hours.

Buying Auto Insurance Direct

Many car insurance companies allow customers to purchase policies directly from the company and bypass an agent. In this situation, the entire process happens online.

Pros of Buying Insurance Direct

Customers can buy a policy at any time of day, which is convenient for anyone, especially people with schedules that are unconducive to shopping for insurance during regular business hours.

Buying insurance direct can be quick. Getting a new car insurance policy might only take a few minutes.

Buying direct allows a driver to get the policy they want with no added pressure to buy additional insurance products they don’t want.

Cons of Buying Insurance Direct

Customers may find it challenging to figure out what and how much insurance they need when they can’t ask questions of an agent.

Customers could miss out on insurance products they need because they don’t realize what’s required by the law and what they need based on their financial situation. 

Some insurance agencies require customers to work through an agent and don’t allow customers to purchase policies online, so they may not have access to some of the best options for their situation.

The Winner: Agent or Direct

There is no constant winner between buying insurance from a broker or direct for all situations. Some customers may decide that the best option for them is a combination of working with an agent and then making their final decision by purchasing a policy online.

Some companies that don’t offer direct buying options may be cheaper for some individuals, while buying direct insurance providers is more affordable for others. 

The only way to know which option is right is for a customer to compare both options for themselves. 

Read Clearsurance.com’s entire report here: Buying Insurance Direct vs. Through an Agent: Pros and Cons.