Any goods should find buyer somehow. There are three most widespread schemes at which we should look concerning auto insurance.
1. Captive agents. The Agent-businessman who is independent contractor, concludes the contract with the company. The company learns it, gives access to insurance products, subsidises business development the first couple of years. The agent does business in interests of the company, selling only is it products. He can sell agency if wants, it is his business.
Under this scheme three largest insurance companies work – StateFarm, AllState, Farmers.
2. Broker. The broker differs from the agent only that it is not adhered to one concrete company. The insurance company does business with the broker provided that broker provides some minimum annual volume business. The broker can translate the client from one company in another at own discretion.
Theoretically he is more on the party of the client than the agent, but it is faster theoretically. In practice the broker does business with very limited quantity of companies, because there are minimal requirements to volumes operations.
Moreover, at translating business from the company in the company, the broker should spend as much time, how many necessary on new client, he thus will not earn money, that is, in it time will work charge.
3. Direct writers. So the companies are called, which sell insurance. Sometimes they even do not have office for clients – purchase and sale occurs either by phone, or through web site. Sometimes there is office, ААА, for example, but with client works the employee, not businessman. He does not work on itself, cannot buy or sell business, transfer by succession.
In the theory, direct writers should be cheaper – they pay less employees, they do not give grants to new agents. In practice it not so. They spend monstrous money for advertising. They take without looking, by phone, bad business, suffering in greater degree from frauds.
At any moment have some agents and brokers, who can beat the quote direct writers. It does not mean, that any agent or any broker are able to do it, but always is such who can.
Compare competent, benevolent employee of the company and illiterate, greedy agent or broker - senselessly. But, if compare equally qualified people on different channels of distribution of insurance, the agent and broker much more inclined to struggle for the business, keep you happy, will keep with you contact, really penetrate into your situation and be on good competitive level. They really participate in business struggle.
Hired workers, generally, concern you not how, they would concern you, be you clients them business.
Run into troubles, or on the contrary, to receive good service and the quote possible in any place, that should not distract us from understanding of main – is necessary to search good agent or broker.
The same as, having run into bad doctor, we do not stop to search good doctor. Understanding what go to the doctor on duty in nearest clinic can to be and not so terrible, but not so it good, how go to good doctor.