Insurance companies generally sell insurance either through agents or direct marketing.
Agents. Most insurance companies currently in Massachusetts sell insurance through agents.
You should be aware there are two kinds of agents:
(1) the captive agent who represents only one insurance company (Liberty Mutual, Amica, State
Farm, and the like); and
(2) the local independent agent, who generally represents several insurance companies and does
not have a vested interest in selling you a policy from one particular company.
Experts say that consumers who do business with independent agents generally have an
advantage during the claims process. Since an independent agent is an independent business
person, your agent can advocate for you when you have a claim.
Further, a local independent agent is usually familiar with your situation and can guide you toward
a suitable policy. With an independent agent, you can change your insurance company without
changing your agent.
Direct Marketing. Some insurance companies sell insurance through direct marketing, meaning
that they sell insurance directly to consumers without the involvement of agents.
One of the key differences between the two types of insurance agents is that independent
agents provide service beyond the sale. Their idea of service is person to person. They help you
design your insurance package and are there day in and day out to service your insurance needs.
On the other hand, insurance company employee agents are paid to sell insurance policies. The
servicing of your policy, including claims handling, is handed off to other company employees.
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