Captive agent

A captive agent represents one insurer, or one family of insurers under the same parent, and cannot place business with outsiders. Some are employees and many are independent contractors, but the contract commits them to that company. The customer relationship, including the right to renew the policy, generally stays with the insurer. State Farm, Allstate and Farmers are among the carriers with large captive networks.

What you get is depth. A captive agent knows one company's forms, endorsements, discounts and claims people well and can often bundle home, auto and life under one roof. What you give up is comparison. You will see only that company's price and its underwriting rules, and the agent will not say another insurer would suit you better.

The limit shows when things go wrong. Say your insurer declines to renew a home in a wildfire zone. A captive agent may have nowhere to send you except an affiliated program, while an independent agent can approach several carriers. Ask a captive agent early what happens if the company nonrenews, and shop a competing quote at least every few years.

Neither model is better by default. The comparison of captive, independent and direct sellers sets out the trade-offs, and direct writer covers companies that skip agents.