Agent
An agent is a licensed individual who sells insurance policies on behalf of one or more insurance companies. They act as intermediaries between you and the insurer, helping you understand your options and choose the right coverage.
Definition maintained by the InsurTool Editorial Team. Last reviewed .
Core Takeaways
- An agent is a licensed individual who sells insurance policies on behalf of insurance companies.
- Captive agents represent a single insurer; independent agents can offer policies from multiple carriers.
- Agents help you understand your coverage options and can assist with claims.
- Agents are paid through commissions from the insurance companies they represent.
What is an Agent?
In plain English: An agent is your insurance “salesperson” who works with insurance companies to find you the right policy. Think of them as your guide through the insurance maze.
Types of Agents
- Captive Agent — Represents a single insurance company
- Independent Agent — Can offer policies from multiple insurance companies
Captive vs. Independent Agents
| Feature | Captive Agent | Independent Agent |
|---|---|---|
| Number of companies | Represents one company | Can represent multiple companies |
| Policy options | Limited to one company’s products | Wide range of options |
| Expertise | Deep knowledge of one company | Broad knowledge of multiple companies |
| Best for | Customers who prefer one brand | Customers who want to compare options |
What Does an Agent Do?
- Assess your needs: Help you determine the right type and amount of coverage
- Explain options: Break down policy details in plain English
- Get quotes: Shop around (if independent) or provide quotes from their company
- Help with claims: Assist you when you need to file a claim
- Review coverage: Help you update your coverage as your needs change
Important: I’ve had great experiences with both types of agents. Captive agents often have deeper knowledge of their company’s products, while independent agents can give you more options to compare. It really depends on what you’re looking for.
Authoritative Sources
For more information on insurance agents, visit these trusted resources:
Frequently Asked Questions
Do I have to use an agent to buy insurance?
No, you can buy insurance directly from many companies online or over the phone. However, an agent can provide personalized advice and help you navigate complex coverage decisions.
How much does an agent cost?
Agents are typically paid through commissions from the insurance company, so you don’t pay them directly. The commission is built into your premium.
Can I switch agents?
Yes, you can switch agents at any time. If you’re switching to a different company, you’ll need to cancel your old policy and get a new one.
What’s the difference between an agent and a broker?
An agent represents the insurance company, while a broker represents you (the buyer). Brokers shop multiple insurers to find the best coverage for you.
About this definition
Written and checked against the primary sources linked on this page by the InsurTool Editorial Team. Definitions describe how these terms are used in the United States; policy wording differs between insurers, and state law changes the meaning of some terms. Your own policy document is the authority for your coverage.
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