Insurance Tips: Broker vs. Direct Writer

You may have heard some noise lately in the insurance world.


Some argue it is better to go with a “direct writer,” rather an independent broker. However, the issue with direct writers (those companies whose agents are employees / contract labor) is the fact they do not own or have input regarding issues with coverages or claims.

In the past several years we have seen the rise of many insurance companies, such as Progressive Casualty Insurance Company (“Progressive”) and Esurance Insurance Services, Inc. (“Esurance”), and many others. These carriers and many others are sold online or by an employee/contract agent. The issue is that there is no ownership in those situations. Recently, one major provider even filed suit against its own deceased insured to avoid paying an underinsured motorist claim.

Insurance carriers are businesses through legal contracts written by attorneys, defended by attorneys, and have suits filed by attorneys. The client, on many occasions, is trapped between the company and the attorneys.

Independent Brokers vs. Direct Writers

At times like this, insurance cost and the few dollars saved are long forgotten. When a customer is insured with an independent agent, the agency has more company options; but most importantly, he or she has policies that contain a broader coverage. Insurance policies are legal documents in which companies add endorsements (changes) which limit or broaden coverage.

Direct writer agents are employees or 1099 contract labor, but they sell and give advice upon what they have been told or taught. Independent agents and their carriers are held to a higher standard and are deemed to be professional and are legally liable to uphold and offer their clients the best price but moreover, the best coverage.

A Final Reminder

Remember: no one ever remembers the price of the coverage when the claim happens. Make sure that you focus on finding the right coverage for your family. It will pay dividends when it really counts.

To talk to an insurance agent in the Tri-State area, reach out to our team at Kincaid Insurance. We’ve helped families and businesses for more than twenty years, and we look forward to learning more about your needs. If you live in Evansville, Newburgh, Chandler, Boonville, Henderson, or Owensboro, we’re happy to help.

For a risk-free quote, fill out this form today. You can also talk to a live agent by calling our office in Rockport, Indiana. Call us during normal business hours at: (812) 649-5739.

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