In short, there is! Both are essential to provide you with the insurance you need, although in rare cases it is possible to go directly to the insurance company.
The Insurance Agency
An insurance agency will provide you with access to a range of different insurance policies. They will be able to discuss each policy with you and the benefits of one over another. They will also look at what other insurance needs you have and quote on them for you.
There are two types of Groton insurance agency:
- The Attached Agency
This type of insurance agency is linked directly to one insurance company. They will only be able to offer you insurance policies from the linked firm. They will receive a commission payment from the insurance company and act as a liaison if you have any problems.
2 . The Independent Insurance Agency
You will have more options available with this type of agency. They are not affiliated to one specific insurance company; as such they are able to shop round the different insurance companies to get you the best possible price. Of course, every insurance company may offer a slightly different set of terms; it is important to know what they are offering you to justify the difference in prices. In the same way as the attached agency this firm will earn its money via a commission paid by the insurance company.
You should make sure you are aware of all the facts before you take out a policy.
The Insurance Company
An insurance company is the firm which is actually providing the risk. It is them that will take your funds and pay you money if a problem arises and you need to make a claim. Insurance companies do not generally deal with the public; although there are a few exceptions.
Insurance companies work by pooling the funds from many different clients. These will then used to pay out when a repair or other claim is presented and justified. The intent is that the money paid in is more than the money paid out; creating a profit for the firm. This is why insurance companies are never eager to pay out funds; they see it as their own money and don’t like parting with it!
An insurance company can influence an insurance agency by offering a high level of commission; this will encourage the agency to place policies with them rather than their cheaper competitors. You should be aware of this fact as it can affect the price you pay for your insurance. It is possible to ask the agent how much commission they are getting as this can help you assess whether they have your interests at heart or not.
Insurance is one of those items that are essential but that most people do not like to spend too much time or funds on. Whilst this is appreciated, it is important to obtain a variety of quotes and check the terms and conditions before signing up.