This article is about the basic methods, as insurance companies sell their policies in the United States.
Any product has its buyer. There are three most common schemes of motor insurance policies sales.
1. Captive agents. It is agent-entrepreneur who enters into a contract with an insurance company. The Company conducts his preparation, provides access to insurance products and subsidizes his business in the early stages. This agent works for only one company, selling its products. He can sell his agency at any time - it's his business. This scheme is used by three major companies: AllState, StateFarm, Farmers.
2. Broker. The main difference between agent and broker is that, the broker is not tied to any one particular company. The insurance company is working with a broker only if it is able to provide a certain minimum volume of business. Broker may transfer their clients from the one company to another at their own discretion. Theoretically, it serves the client closer than an agent of an insurance company, but that is not always the case. But in practice, the broker works only with a limited number of companies, as there are restrictions on the minimum volume of transactions. In addition, translating his old client from one company to another, he will spend as much time as the registration of a new client, but it will not bring him income.
3. Direct writers. These are companies that sell their own insurance policies. Sometimes they have not got even office for visitors - transactions take place by the phone or on the website. In most cases, they have got an office, but client is served not by the agent but the hired employee. He does not work for himself, and gets salary, so he can not sell his business. Theoretically services of direct writers should be cheaper because they pay low wages to their employees and do not subsidize the agents. But in fact it is not. They pay monstrous money for the outdoor advertising. Therefore, many brokers and Agent can easily outbid direct writers.
Competent and friendly staff member is much better than the illiterate and avid broker or agent. But if we compare people with the same qualifications on different channels of distribution of motor insurance products, the agent or broker is much more motivated to fight for your business, to call back you and really delve into your problems, to be on the good competitive level. At the same time employees will apply to you not in the same way, as would apply whether you are a customer of their own business.
Get a good quality of service, or get in trouble you can anywhere, but that does not change the main thing - it is necessary to look for a good agent or broker.
