Insurance Agency vs. Insurance Company: What’s the difference?
Insurance is one of the most crucial financial tools for protecting yourself against future losses. Insurance types range from medical and property insurance to car insurance.
If you’re currently looking for insurance in El Paso, you’ve probably heard the terms insurance agency or insurance company being thrown around. So what’s the difference between the two?
Also known as insurance carriers, insurance companies are the businesses that actually sell policies to customers. The insurance company underwrites or accepts liability for a future loss-causing event, determines the number of premiums the insurer must pay, and receives these premiums monthly or yearly.
The insurance company is also the entity that will compensate the insured loss. Essentially, an insurance company is responsible for creating policies, taking on liability from future risks, receiving premiums, and paying out insurance claims.
Insurance agencies like Bundle Bee Insurance Agency do not create insurance policies, underwrite them, or payout claims. Instead, they act as middlemen between the insurance companies and potential customers, selling insurance policies for a commission on behalf of the insurance companies.
An agency’s objective is to connect people looking for insurance with insurance firms that can provide compatible policies. You will run into the following two types of insurance agencies as you search for insurance in El Paso;
- Exclusive agents; Also referred to as ‘captive agents,’ exclusive agents can only sell insurance policies originated by a single insurance company
- Independent agents; Unlike exclusive agents, independent agents can sell insurance policies from various insurance carriers.
Independent insurance agents tend to be the better option as they can shop around for policies from different carriers and find the most suitable insurance products at the best prices. Since exclusive agents are only authorized to sell a single company’s products, they may not be able to find you the mix of policies that best suit you and your financial needs.
When Should You Talk to an Insurance Company or Agent?
Generally, there will be limited communication between you and your insurance company. You only contact your carrier to file a claim or discuss billing. An insurance agent like Bundle Bee Insurance Agency can help you handle everything involved with purchasing insurance – including reaching out to your insurance agency if you:
- Wish to understand more or have any questions about your existing coverage
- Would like to know whether or not you should file an insurance claim with your provider
- Want to adjust your insurance plan
- Would like to buy a new policy or change carriers entirely
Contact Bundle Bee Insurance Agency Are you looking for a home, auto, or any other type of insurance in El Paso? Bundle Bee Insurance Agency has got you covered. Our independent agents represent more than 80 of Texas’ insurance companies. We offer homeowners, auto, business, and numerous other commercial and personal policy options, including life insurance. Contact us today at (888) 905-2039 for a free quote.