Buying insurance direct vs. through an agent refers to two popular methods for purchasing coverage. Direct buying offers fast, hassle-free access to insurance with immediate quotes, appealing to those seeking quick solutions.

Using the best insurance agent provides a more personalized approach, ideal for individuals with complex coverage needs or questions. See a more detailed comparison of insurance agent vs. broker.

Whether you prefer speed or tailored assistance, this guide helps you determine which buying method fits your situation best, ensuring you get the right coverage at the best price.

Searching for more affordable premiums? Insert your ZIP code above to get started on finding the right provider and insurance agents nearby.

What You Should Know

• 65% choose direct for fast and simple quotes
• Direct insurance is fast but lacks personal help
• Agents provide tailored advice for complex policies

Pros and Cons of Using an Insurance Agent

Is it better to get car insurance online or through an agent? Many varied reasons exist to turn to a better agent for help, especially if you have questions about:

• High-Risk Driving Records
• Insuring Multiple Drivers
• Unique Policies for Classic Cars
• Membership or Affinity Discounts

When buying insurance through an agent, you will interact with either an independent agent or a captive agent. Both get you the insurance coverage you need and can help you understand your insurance options.

The difference between an independent and captive insurance agent is that independent agents have access to more companies and policies. Captive agents can only sell coverage from one company.

Is it cheaper to go through an insurance agent? You might be able to get cheap car insurance with an agent if you are looking for unique policy options and discounts.

Pros

Should I use an insurance agent? Here are the pros of purchasing insurance through an agent:

• Captive Agents Are Knowledgeable: Captive agents educate customers and help them understand car insurance, including state minimum insurance requirements, coverage options, discounts, and more.
• Work With Customers to Identify Their Needs: Working with an agent can help you to know your needs and can ensure you purchase the appropriate type and amount of insurance.
• Get Multiple Quotes for Comparison: Customers receive multiple quotes from different insurance companies when using independent insurance agents.
• Customers Get Help Managing Their Policies: After you purchase insurance, agents can further assist with policy updates, modifications, and renewals.
• Personalized Buying Experience: Agents work closely with customers to learn their needs, so the buying experience is more personalized and focused.

Is it better to use an insurance agent? Even though agents are trained to help customers buy insurance, this doesn’t mean this option is without flaws.

Cons

Are insurance agents worth it? Here is a list of cons to using an agent to help you decide:

• Lack of Autonomy: You have little control over the purchasing process when working with an agent, which can cause a delay in securing a policy.
• Agents Motivated by Commission: You could be convinced to potentially purchase more insurance coverage than necessary if your agent wants to make more money on the commission from a high sale.
• Missed Savings Opportunities: Working with a captive agent who is unable to assist you with quotes from different companies or with switching insurance companies won’t help you find the cheapest insurance option.

If using an agent sounds like the way to go, you can connect with local insurance agents from the insurance company of your choice to learn more about your options.

Learn more: A Practical Guide for Understanding Car Insurance

Insurance Broker vs. Agent

Is it cheaper to get insurance through a broker? Insurance brokers and insurance agents provide similar but different services for customers. The goal for both is to get the customer insured, but brokers charge a higher fee.

Unlike insurance agents who represent the provider, insurance brokers represent you, the customer. Brokers can shop with multiple companies to find you the best deal on car insurance.

Is it better to get insurance through a broker? A car insurance broker focuses on researching and finding the best car insurance company for you, but they typically charge a fee for their services.

Below are the benefits of having an insurance agent/broker vs. direct:

• Increased Odds of Finding Low-Cost Coverage: With a knowledgeable, experienced insurance broker looking for the perfect insurance company for you, your chances of getting the lowest-priced insurance coverage are high.
• Saves Time for the Customer: Since brokers shop around, customers do not have to spend time doing it themselves.
• Personalized Experience: Brokers work for the customer, so their focus is on finding the best insurance coverage, which requires them to get to know the customer, their needs, and their circumstances.

Do insurance brokers save you money? No, insurance brokers often cost more than using an agent or buying direct.

Consider your car insurance budget and the following risks of buying from an insurance broker vs. a direct purchase online:

• Customers Pay a Fee for Services: Insurance brokers earn a commission, but they are also paid a fee by customers for their services.
• Delayed Purchasing Time: Using a broker can delay the purchasing process because customers must wait to purchase insurance until they get more information from the broker and compare costs.

Is it cheaper to go through an insurance broker? No. The main difference between getting insurance through a broker or direct is that you're paying for a catered experience with the broker.

You pay a higher premium using a car insurance agent vs. direct shopping because the agent will do the research for you to find the perfect policy and best discount. Get further details on how to lower your car insurance premium.

Direct Insurance vs. Agent/Broker Insurance Comparison

When comparing direct insurance and agent/broker insurance, both methods offer distinct advantages depending on your preferences and needs. This section provides an in-depth look at the key differences highlighted in the table, giving you a clearer understanding of which option suits you best.

Ultimately, the right choice depends on what you prioritize in an insurance experience—whether it’s the ease and affordability of direct insurance or the personalized service and expert support offered by an agent or broker.

Buying Car Insurance Online vs. Agent

Do you need an insurance agent? You might not have any questions about your policy and just need basic coverage. So rather than going back and forth and discussing every detail with an agent, customers can buy insurance direct from a company website.

Geico is one the most popular insurance companies without agents. Other national providers that allow drivers to buy the best insurance online without an agent include State Farm, Progressive, and Travelers.

Buying insurance directly vs. with an agent requires entering some personal and vehicle information to get a quote. For example, to find out if Progressive direct is cheaper than through an agent, you'll have to visit the company website and provide your ZIP code, vehicle make and model, and driver details.

Do you read reviews before buying goods and services? Online reviews are said to make a difference in consumers’ buying behaviors. Many report trusting them as much as personal recommendations! ➡️ https://t.co/d11fIvDhUE #Shopping #Online #Reviews 💻 pic.twitter.com/Tl8pu6dZNn

— Clearsurance (@clearsurance) March 8, 2022

You may also want to try online marketplace, which allows you to receive multiple quotes at once and compare prices before purchasing. After reviewing the quote and deciding what coverage options and limits work best, you can pay and get coverage immediately.

However, not all companies participate in online marketplaces. So if you're specifically looking to compare something like Progressive Direct vs. an agent, your best option is to visit the company website directly. If buying directly interests you, consider both the pros and cons of buying insurance online vs. from an agent below.

Pros

Is it cheaper to buy car insurance online or through an agent? It can be, which is why many people choose to shop online for car insurance. Scroll through this list for more perks to purchasing car insurance without an agent (For more information, read about what to consider when getting car insurance quotes online).

• Greater Control Over Purchasing: Agents handle most of the purchasing process for you, but when purchasing insurance online, you have the control, including selecting which company to receive quotes from and when the purchase will happen.
• Quick, Easy, and Convenient: Your insurance coverage purchase won’t be delayed when buying online because insurance companies offer an easy-to-understand, user-friendly purchasing process.
• More Affordable Policy: The cost of your policy may be less compared to the cost of the policy purchased through an agent.
• No Pressure to Buy From Other Company: Customers are not pressured or tricked into purchasing expensive coverage they may not need.

Buying car insurance online is so easy you might be wondering, why use an insurance agent at all? While online car insurance is a straightforward process, it's possible you'll be missing out on a few things by choosing to buy insurance without an agent.

Cons

Is it better to go through an insurance agent? It can be, so consider the cons of purchasing car insurance directly from the company:

• Risk of Choosing Wrong Coverage: Without an agent to explain the diverse types of coverage, you run the risk of purchasing insufficient or unnecessary insurance coverage due to a lack of understanding.
• Unpersonalized Purchasing Experience: No agent is there to assist you when purchasing insurance online, so no personalized attention is provided.
• Some Agencies Won’t Be an Option: Larger insurance companies offer insurance online, but not every company makes their products available to customers directly.

If you decide purchasing car insurance online makes sense for you, we recommend getting quotes from a few different companies and comparing the types of coverage, cost of coverage, coverage limits, discounts, and more.

Buying Insurance Direct vs. Through an Agent: What You Need to Know

Is it cheaper to go through a broker for car insurance? Whether you choose accurate insurance brokers or buy directly from the provider, you’ll still get the necessary coverage. The best or cheapest option depends on your specific needs and circumstances.

Why do you need an insurance agent? You might have unique coverage needs, multiple vehicles, or a questionable driving history, all of which an agent is trained to help policyholders with. But if you're wondering if it's cheaper to get insurance through an agent, that depends on where you live.

Learn more by checking out our guide: How to Get Cheap Car Insurance

Once you figure out what you need and which option works best for you, then you'll know whether to buy from an insurance agent vs. direct from the company. Enter your ZIP code here to see how much car insurance costs near you, then compare insurance quotes online to what a local agent can offer.