What is the difference between Direct Write and Independent Insurance Agencies?

In the world of insurance there are many options for the customer, this week we will discuss two different types of agencies and how those differences affect you.

The first type is the direct write agency (for example, State Farm or Farm Bureau). So, what does direct write mean? It means that the agency works exclusively for a single insurance company that they represent; they are really just an extension of the parent company. This means you only get pricing from that one company when you request a quote. If you happen to have a claim, you deal with a claims adjuster that represents the insurance company. Many times the agency through which you bought your policy has very little to do with the claims process.

In contrast, an independent insurance agency (for example, PCE Insurance) works for YOU. They are able to write policies through multiple companies, which means they can shop around for you to find you the best coverage for the best price. Also, as your policies near the time of renewal, your independent agent can review your policy to make sure your needs are still being met, and that you are still getting the best value possible. Another bonus is that if you happen to run into any questions or issues with the insurance company, your agent can and will be there to assist you every step of the way.

Bottom line your local independent agent has your best interests in mind and they are not beholden to a single, larger parent company. They have so many more options, and really, who would want fewer options?

Call us today to learn what your options are at 616.261.2222

What Do YOU Wonder?

Insurance can seem complicated and confusing, but it doesn't have to be that way. At PCE, our desire is to answer your questions as simply and straightforward as we can - and that is exactly what we are going to start doing using this blog. We will be answering a new question every other week. (This is the part where we ask you to think of that insurance-related question you've always wondered about and email it to us at info@pceinsurance.com)

To get things started, here is a question we hear frequently...

Where in the world did insurance come from and what made it necessary in the first place?

While it was not the first example of insurance found in history, Lloyd's of London is the one that most closely resembles what we think of as insurance today and is arguably one of the oldest insurers in the world.

Lloyd's of London did not actually start out as an insurer, but as a coffee house. Sailors, merchants and ship owners frequented this coffee house - here they were able to exchange information about ships, shipping routes and cargoes. Due to the large risk (but also proportionally large reward) of shipping around the globe there became a need to spread out the financial risk of any given ship, cargo and crew. At Lloyd's one could sign their name under a ship's name.  By "underwriting" their name, they then assumed a measure of risk if that ship was lost.  Of course, if the ship made a successful voyage, they would then receive a predetermined financial reward. Thus, the concept of modern insurance was born.

Be sure to "Like" our Facebook page and check our blog often - we may be answering your question soon!  Oh, and by-the-way, we have some pretty cool ideas for video posts - featuring you and your friends...auditions will be held soon.