Will You Get Better Insurance Rates By Going Direct to Carriers Instead of Using an Agent?

Insurance costs impact your budget, and you may wonder if working directly with carriers could save you money. At first glance, bypassing an agent might seem like a way to reduce premiums since agents earn commissions. But this assumption about insurance pricing doesn't match reality.

At the Horan insurance agency, we work with multiple carriers throughout Central New York and can explain how insurance rates actually work.

In this article, we'll explore the relationship between carriers and agents, what causes rate variations, and how commercial insurance differs from personal lines.

How Insurance Carriers Set Their Rates for Both Direct and Agent Sales

The core premium rates insurance carriers charge remain the same across all distribution channels. One insurance agency doesn't receive preferential rates over another agency from the same carrier, and carriers pay agent commissions from their operating budget, not as an add-on to your costs.

What Creates Premium Differences When Comparing Multiple Insurance Quotes

When comparing quotes between direct carriers and agents, you might notice small variations in premiums. For example, you could receive a six-month auto insurance quote from Progressive directly for $700, while an agent quotes $747 for the same coverage. These differences stem from several factors:

• Minor differences in data entry, like annual mileage estimates
• Timing of quote generation, as rates can update frequently
• Varying interpretations of provided information
• Different coverage options or limits included
• Various discount programs being applied or overlooked

When all information matches exactly and coverage selections stay identical, personal insurance rates remain consistent whether you purchase through an agent or directly from the carrier.

Learn more about the nuances of comparing auto insurance quotes.

Commercial Insurance Rate Variables That Can Impact Your Premium Costs

Commercial insurance operates under different rules than personal lines policies. Insurance carriers may allow agents to request premium adjustments on qualifying commercial policies that meet specific criteria:

• Policies must reach defined premium thresholds
• Business risk profiles need to satisfy underwriting guidelines
• Agents receive limited adjustment allowances per time period
• Adjustments can reach up to 10-15% on qualifying policies, subject to underwriter approval

This structure means commercial premiums could vary between agencies based on approved adjustments for qualifying policies.

Benefits of Working With a Local Insurance Agency in Central New York

Independent agents offer several benefits beyond rate comparisons. Here's how working with a local agency can make a difference:

Access to Multiple Insurance Carriers

Rather than contacting each carrier individually, you can review options from several insurance companies through a single point of contact. This can save time when comparing different coverage options and rates.

Understanding Policy Details

Insurance policies contain complex terms and conditions. Local agents regularly review these documents and can assist in explaining different coverage features, exclusions, and requirements that may affect your situation.

Local Market Experience

Central New York presents unique insurance considerations, from winter weather impacts to specific municipal requirements. Local agents work with these factors daily and can share insights about how they might affect your coverage choices.

Support Throughout the Insurance Process

When questions arise about your policy or you need to file a claim, a local agency can help guide you through the process. You'll have a local contact who's familiar with your situation rather than speaking with a different representative each time.

Take a Strategic Approach to Finding Competitive Insurance Coverage

Insurance decisions affect your financial wellbeing. While going direct to carriers won't reduce your premium costs, working with a local insurance agency can help you explore coverage options that align with your situation.

The Horan insurance agency aims to serve as a resource for Central New York residents and businesses seeking to understand their insurance options. We can assist in reviewing different policies and gather quotes from multiple carriers for comparison.

Click the Get a Quote button below to learn about insurance options for your Central New York location.

Now learn if Horan is the right agency for you.