What Is an Insurance Agency?

Shopping for insurance can seem overwhelming with so many different insurance companies offering various policies and coverages. Where do you start? How do you know what policies have the coverages you need? That’s why many people use an insurance agency to help them find the right policy. So, what is an insurance agency and how are they different from an insurance company? We’ll break down how it works.

Woman and Man in Office Looking at Papers

An insurance agency, like HomeFirst^® Agency, offers a service for its customers to search among a variety of insurance companies to find the right policy. Imagine you are looking for an auto insurance quote. You go online only to find a long list of auto insurance companies to choose from. As you compare each one, you find they each offer different coverage options and features. However, you painstakingly sift through each insurer’s site trying to get a quote. Maybe one quote was a little too high or left you with coverage questions, so you try another insurance company. That process can feel endless and it can consume a lot of your time.

With an insurance agency, the agency knows the different policy features and coverages among the many companies they work with. The agency can quickly get you policy quotes after finding out what policy coverages and amounts you decide you need. And don’t forget about the discounts! An agency also knows which insurance companies offer certain discounts such as:

Good student
Safe driver
Occupational
Paperless

Just to name a few…

Who Services the Policy?

Some insurance agencies also service the policy after the sale, while others do not. At HomeFirst® Agency, we service and handle the claims for mobile home policies written through Assurant. However, all other product policies (site built homeowners, auto, motorcycle, etc.) are serviced by the insurance company whose policy you buy. For those policies, you will make payments and report insurance claims directly to the insurance company, not the insurance agency.

Is It More Expensive to Go Through an Insurance Agency?

Now you might be wondering if there is an extra charge for going through an insurance agent or if the policies are more expensive if you use an agency. In short, no, the policy is not more expensive. It’s a benefit to the insurance company to have agencies offer its policies to as many customers as possible.

The benefit for you is you get a more personal relationship with the agency, and you save a bunch of time not having to search for the right policy. Let our agents do the searching for you!