Umbrella Insurance
Independent Agents vs. Captive Agents
When you’re in the market for insurance, whether it’s home, auto or commercial insurance, you typically work with an agent who can help you find a policy that meets your needs. But most people don’t know that there are two different kinds of insurance agents—captive and independent agents.
So what is an independent insurance agent vs. a captive insurance agent? In short, captive insurance agents are contracted to work for one insurance company and can only sell that company’s policies. On the other hand, independent agents are contracted to work with a variety of insurance companies and can sell policies from multiple providers.
As a consumer, it’s important to understand the distinctions between captive and independent agents. Although they sound the same, some people may benefit from working with a captive agent and others with an independent agent. In this article, we’ll explain the key differences and help you decide which agent is best for you.
Captive Agents
Most of the major insurance companies, like State Farm, Allstate and Farmers, use captive agents to sell their insurance products. Their agents are only selling policies from that one insurer, so the agents are experts at knowing the different policies available, discounts and coverage add-ons for their one carrier.
Because of that, they can be helpful for people who are buying insurance for the first time or for people who aren’t sure how much coverage to purchase.
Client satisfaction is crucial for captive agents because they get a commission for every earned sale. However, their commission rate tends to be lower than for independent agents because they are also paid a salary from the insurance company and get financial assistance with costs like advertising and hiring.
Independent Agents
Independent agents partner with several insurance companies of their choosing to sell certain policies from each provider. For example, an independent agent might contract with Pioneer Insurance, Frankenmuth Insurance,and Citizens Insurance and sell any of their auto and home insurance policies.
Many consumers like working an independent insurance agent because an independent agent gives the customer more options. They aren’t locked into purchasing from a small number of plans that might be too expensive or not a great fit for their coverage needs. Those options help people shop around for plans before settling on one.
Which is better?
Generally speaking, there isn’t one better type of insurance agent. Whether you choose to work with a captive agent or an independent agent depends on you.
The main benefit of working with a captive agent is that they have extensive knowledge of their insurers products and policies, because they have one carrier. However, working with a captive agent tends to be more expensive, due to extra fees that the insurance company charges.
If you work with an independent agent, you’ll get more options, which also means a wider price range. But independent agents have in-depth knowledge about numerous carriers, where captives only need to learn one. Also, independent agents usually charge less because there isn’t one parent company to support.
If you’re concerned with keeping costs low, working with an independent agent will save you money. Keep in mind that you should already have a general idea of what you’re looking for before meeting with an agent.
Frequently asked questions
What type of insurance do independent agents and captive agents sell?
Both independent and captive agents can sell any kind of insurance they want. Some choose to sell every product that an insurer offers, while others specialize in a few areas, like home and life insurance.
Should I choose an independent agent or a captive agent?
There are a few main reasons why you would choose an independent vs. a captive agent. The first is cost—working with an independent agent will be cheaper than working with a captive agent. Secondly, independent agents can offer a wider variety of plans, so you have more choices and a wider price range to work from.
How to prepare your phone for an emergency
In case of an emergency, here is how to prepare your phone.
Today, our phones are rarely outside of our reach. This makes them one of the best tools we have to quickly respond to an emergency and increase the chances of a more positive outcome.
How prepared is your phone to handle an emergency?
In most emergencies, you would be the one to contact someone for help. So, it’s important to take a few minutes to research and save important emergency contact numbers on your phone so you can make the call immediately and get help faster.
Here are the main emergency phone numbers to prepare
- Your emergency contacts, such as a parent, spouse, or close friend
- Police, 911 in the United States for emergencies
- Poison Control Center
- State Highway Patrol
- Your nearest police and fire department (for non-emergencies)
You should also consider saving these important numbers to help you in an emergency:
- Your doctor, pediatrician, and/or veterinarian
- Your pharmacy
- Home health aides
- Your insurance company
- Your roadside assistance provider
- Your employer
- Your child’s school or caregiver
- A nearby relative or friend
- An out-of-town relative or friend
There are also some emergency situations, like a bad fall or car accident, where you might not be able to communicate with first responders. For this reason, it’s important to take these two steps:
- Add an emergency contact in your phones, such as a parent, spouse, or close friend who can come to your aid.
- If your phone locks, set up a lock screen message to communicate helpful information to first responders, like your emergency contact, blood type, allergies, and medications.
Depending on the type of phone you’re using, there are different ways to add a lock screen message.
iPhone users can use the Health app on their phones to add their basic personal information, important medical details, and emergency contact numbers within the Medical ID tab and make them accessible from their lock screen. Just make sure you select “Show When Locked” and test it out after you’ve finished setting it up.
Android users can set up their lock screen message by going into their Settings, Users & Accounts, and then Emergency Information. Enter your medical information and emergency contact. Then test it out by locking your phone, swiping up, and tapping “Emergency” to find the information you entered.
Additionally, Android lets you put any message you want on your locked screen. To do this, open your Settings, go to Security & Location, and next to the Screen Lock tab hit Settings. Then, tap Lock Screen Message. Here, you can enter your primary emergency contact or important medication information so that it always displays on your locked phone screen.
Because it’s difficult to predict when or where an emergency will happen, it is a smart idea to prepare your phone now so that you’re ready to handle any situation that comes your way in the future. Be safe out there!
This article is for informational and suggestion purposes only. To learn more about Shield Insurance Agency, business and life insurance, or auto insurance including Roadside Assistance, please call or text our office at 616-896-4600
References:
– Harvard Health Publishing, Harvard Medical School
– HuffPost, LIFE
Wallet Safety Check List
10 items to leave out of your wallet
It’s simple for thieves to turn plain, old regular crime into cybercrime – if you give them the right information. Leave these ten items out of your wallet.
Over time, it’s easy for your wallet or purse to become stuffed full of crucial information – receipts, PIN numbers, and social security cards – that thieves can use to access your online life with only a few clicks.
Keep only what you need in your wallet and purse and keep your online life secure. Use the infographic below to help determine what should be, and more importantly, what should not be in your wallet.
Wallet Safety Check List
- Social Security Cards
- Birth certificates
- Receipts
- Gift cards
- Extra credit cards
- Blank checks
- Passports
- Medicare cards
- Spare keys
- Pins and passwords
What is Insurance and Why is it Important?
Have you ever had a moment — while looking at your insurance policy or shopping for insurance — when you’ve thought, “What is insurance? And do I really need it?”
You’re not alone.
Insurance can be a mysterious and puzzling thing. How does insurance work? What are the benefits of insurance? And how do you find the best insurance for you? These are common questions, and fortunately, there are some easy-to-understand answers for them.
To help, here are a few simple insurance explanations:
What is insurance?
Insurance is a financial safety net, helping you and your loved ones recover after something bad happens — such as a fire, theft, lawsuit or car accident. When you purchase insurance, you’ll receive an insurance policy, which is a legal contract between you and your insurance provider. And when you suffer a loss that’s covered by your policy and file a claim, insurance pays you or a designated recipient, called a beneficiary, based on the terms of your policy.
The most difficult thing about insurance is that you’re paying for something you hope you never have to use. Nobody wants something bad to happen to them. But suffering a loss without insurance can put you in a difficult financial situation.
What are the benefits of insurance?
Insurance is an important financial tool. It can help you live life with fewer worries knowing you’ll receive financial assistance after a disaster or accident, helping you recover faster. When it comes to life insurance, this could mean your family doesn’t have to move out of the house or that your kids can afford to go to college. For auto insurance, it could mean you have extra cash in hand to help pay for repairs or a replacement vehicle after an accident. Insurance can help keep your life on track, as much as possible, after something bad derails it.
Your independent agent is a great resource to learn more about the benefits of insurance, as well as the benefits in your specific insurance policy. For example, you may have access to perks such as free roadside assistance, risk control consulting for businesses, or cash value in a life insurance policy, in addition to your insurance coverage.
And in some cases, like auto insurance and workers’ compensation, you may be required by law to have insurance in order to protect others.
How does insurance work?
Insurance is essentially a gigantic rainy day fund shared by many people (called policyholders) and managed by an insurance carrier. The insurance company uses money collected (called a premium) from its policyholders and other investments to pay for its operations and to fulfill its promise to policyholders when they file a claim.
Because of the unpredictable nature of natural disasters — like tornadoes, hail, wildfires and hurricanes, and everyday disasters such as fender benders and kitchen fires — an insurance company’s main goal is to remain financially strong enough to handle anything that comes its policyholders’ way.
How do I choose an insurance provider?
Here are a few things to consider when choosing an insurance company to work with:
- Insurance coverage. What types of insurance does the company offer? Can you buy all of your insurance through the company and receive a discount?
- Financial strength. Would the company be able to pay your claim? Look to U.S. credit rating agency AM Best to determine the company’s financial strength.
- Agency model. Would you prefer the help of a local agent? Or would you prefer to manage your insurance on your own?
- Customer service. Do others recommend this company? What are people saying about it in online customer reviews?
When in doubt, contact Shield Agency and ask them any questions you have about insurance. Shield agents are insurance experts with the knowledge to guide you through the process and help you find the best protection for you and the people and things you care about most.
Common Insurance Terms Made Easy
Insurance can be confusing…we get it! But we’re here to help provide you with a better insurance experience. Learn more about what these common insurance terms mean so you can be prepared when looking for a policy.
For customer information or to get a quote, please visit our website at www.ShieldAgency.com .
5 Tips for Millennials Buying Insurance
Shield Insurance Agency Blog | Millennials Buying Insurance |
Adulting (verb) – acting like an adult or engaging in activities usually associated with adulthood, often responsible or boring tasks.1
5 Tips for Millennials Buying Insurance
If you’re a millennial, you know this definition all too well. You’ve reached the age where you may be taking out student loans, buying or renting a place to live, having kids, and, ultimately, purchasing insurance. These major life events for millennials make it extremely important to have a financial security net. And that’s exactly what insurance is: a financial security net. So it’s troubling that a survey from Princeton Survey Research Associates International named millennials the most under-insured generation.
There are many reasons why people of all generations avoid purchasing insurance. It‘s often seen as a big investment, but that doesn’t necessarily mean that it’s an expensive one. In fact, insurance probably costs less than you think. For instance, according to the National Association of Insurance Commissioners (NAIC), millennials overestimated the cost of renters insurance by more than five times its actual cost per year.
Also, the complicated terms can make finding a policy a puzzling experience and the subject matter can be tough to digest. No one wants to think about being in a car accident, experiencing a break-in, losing everything in an apartment fire, or any other sort of bad, unexpected event. But these things can happen, so you’ll want to be prepared.
And don’t let any initial confusion or preconceived notions drive you away. You’re a millennial, after all! Your generation is always tackling new challenges and expanding the way the world works, oftentimes in brilliant ways.
Insurance provides essential financial protection for your future, so now’s the time to start “adulting” and take that first step.
Here are five tips:
- Shop smart. When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.
- Look for discounts. Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.
- Fill in the gaps. An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.
- Purchase life insurance—you aren’t too young. Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.
- Talk to an independent agent. An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple carriers, different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.
Find a local independent agent and start protecting your finances today.
1 – Grammar Girl
Comprehensive Coverage: In case a fish smashes your windshield…
Comprehensive Coverage | Shield Insurance Agency Blog |
FISH SMASHES WINDSHIELD; WILL INSURANCE COVER IT?
Sometimes the blog posts just write themselves.
ABC News in North Carolina reports that a driver in the state looked up and saw a bird carrying a huge fish.
“It was one of those slow-motion moments in life. I saw the fish and I saw him drop it,” said Rhesa Walston of Beaufort, North Carolina.
The catfish smashed straight into her windshield.
It happened so quickly she didn’t have time to react.
“There was glass all over my front seat…glass on my lap,” Walston told ABC News.
After making sure her daughter in the back seat was safe, Walston contacted her family and her insurance company. Family members tracked down the fish (apparently, catfish dropped from high altitudes bounce) and took pictures to corroborate her catch.
Walston told ABC News she will have to pay the $250 deductible on her comprehensive auto policy — not a huge price for a story the family will be telling for years to come. Animal damage is covered if you have optional comprehensive coverage. If you only have collision coverage, then you’re not covered.
The eagle could not be reached for comment…
Comprehensive Coverage
New Year: Foresight in 2020
They say, “Hindsight is 20/20.”
As we approach the new year, the National Insurance Crime Bureau (NICB) is encouraging you to exercise “Foresight in 2020.”
While it’s easy to look back on where and how we failed to protect our assets, it is exponentially more beneficial to look forward and try to predict where we can best insulate ourselves from insurance crime and theft. By studying where we are vulnerable, we can identify weaknesses and adapt improvements that protect us, our families, and our property. From small precautions, like making sure we don’t leave valuables in our vehicles, to more extensive protections, like installing home security systems, we can exercise foresight in 2020 and stop crime before it happens. Law enforcement agencies across the country now engage in the practice of intelligence-based policing.
This methodology uses past data to identify and predict the patterns and behavior of criminals. NICB and our members follow suit, by identifying known threats and patterns in order to properly educate our consumers. You too can be an advocate in this preemptive strike against crime. Educate yourself, take precautions, and be vigilant. By using foresight in 2020, we can win the battle against crime.
The best deterrent continues to be vigilance.
If there is a vacant home or business in your area, and you see suspicious or unusual activity around the property, call your local law enforcement. If any vehicles are involved, jot down their descriptions and license plates. Also, note the clothing and physical appearance of any person(s). All of this is very helpful to investigators.
NICB reminds consumers to make sure your vehicle is locked when unattended. Don’t leave spare keys or fobs inside. Take a moment and be sure to hide your valuables from view. Even an empty bag or extra change in view looks appealing to a thief from the outside.
Do things to protect your home, by locking your doors and investing in a home security system.
Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800.TEL.NICB (800.835.6422) or submitting a form on our website.
About the National Insurance Crime Bureau:
Headquartered in Des Plaines, Ill., the NICB is the nation’s leading not-for-profit organization exclusively dedicated to preventing, detecting, and defeating insurance fraud and vehicle theft through data analytics, investigations, learning and development, government affairs, and public affairs. The NICB is supported by more than 1,300 property and casualty insurance companies and self-insured organizations. NICB member companies wrote over $496 billion in insurance premiums in 2018 or more than 81% of the nation’s property-casualty insurance. That includes more than 92% ($254 billion) of the nation’s personal auto insurance. To learn more visit www.nicb.org.
New jewelry? Insure those valuable gifts!
New jewelry | Shield Insurance Blog |
The holidays provide us with good reasons for presenting special – and often valuable – gifts to our loved ones. In the excitement of surprising someone with a gift that makes a big impression, remember that properly insuring expensive gifts can bring you peace and joy long after the holiday season is over.
Follow some easy tips for insuring new jewelry and valuables:
- Consider taking advantage of a store or manufacturer’s warranties or guarantees, but don’t mistake them for insurance. For example, some major jewelry chains offer limited guarantees on gemstone and diamond replacement or repairs. This is a wonderful perk so long as the store is in business and you comply with regular inspections and the terms of the guarantee agreement. But in the event that your jewelry is lost or stolen, it is unlikely that the store will be able to help you. Talk with your insurance agent about your valuables and the best options to protect them.
- Be sure to insure your expensive purchases to value, not just what you paid for them. Door buster specials during the holiday season may enable you to get a remarkable price on an item, but if you only insure for the price paid, you may not be able to get that same deal if you have to replace it later. The value of precious metals and gemstones fluctuates, so getting an appraisal can help you and your agent determine the appropriate amount of insurance. (And, don’t hesitate to ask your jeweler to provide an appraisal gratis as a way to close the deal. It never hurts to ask, and the cost of an appraisal may be worth it to the jeweler to make the sale.)
- Take a photo of new, valuable items, and have it ready – along with any copies of the receipt, serial number, appraisal or certificate – when you talk to your agent about the right coverage for your items.
- Get to know your policy’s limits. Coverage for expensive electronics differs from the protection for a diamond bracelet. Your agent can help you understand your policy and customize it to make sure it protects all of your valuables, whether the item is something you watch, listen to or wear.
- It’s natural to want to bask in the warm feelings generated by giving someone special a present that wows, so consider insuring the gift as soon as you purchase it and before you present it. That way, you’re giving an extra gift that lets the recipient know, “It’s already taken care of.”
You may be thinking, “Most homeowner policies have built-in limits that cover high ticket items, right?” But depending on what you are fortunate enough to already own, you may have reached those limits. So, be sure you’re covered by talking to your agent about the coverage that will work best for your new valuables.
With a little planning, you can make sure that your holidays – and future – will be merry and bright.
