By Jon Merwin, Founder and CEO, Licensed Insurance Advisor
Key takeaways
- A captive agent represents one insurance company (or one group of companies) and sells only its policies.
- An independent agent is appointed with several insurance companies and can compare their policies for you.
- Both are licensed by the state, and both are typically paid a commission by the insurance company.
- A broker and a direct writer are two other ways insurance is sold; regulators describe four methods in all.
- The right choice depends on how much you value comparison, a single-brand relationship, or handling things yourself.
Short answer: a captive insurance agent works with a single insurance company, while an independent insurance agent works with many. Rhode Island’s Department of Business Regulation puts it simply in its guide to choosing an insurance agent: an independent agent may sell policies from many different companies, and a captive agent sells insurance for only one. Both represent insurance companies and receive a commission from the company for the sale.
We should say up front that we’re an independent agency. Portsmouth Atlantic Insurance was founded in 2005, is family-owned, holds licenses in 10 states and is appointed with 40+ carriers. We’ll explain both models fairly, because plenty of people are well served by a captive agent, and the decision should be yours. Our clients have left 1,000+ Google reviews and over 2,000 testimonials, which you’re welcome to read before deciding.
What is a captive insurance agent?
The California Department of Insurance, in its page on finding an agent or broker, defines a captive agent as one who represents a single insurer, or a single fleet of insurers, and is obligated to submit business only to that company, or at least give it first refusal. Captive agents often work under a well-known brand, may be employees or exclusive contractors, and know their company’s products in depth.
People sometimes search for a “proprietary insurance company.” In everyday use it usually means a company that sells only through its own captive or employed agents, rather than through independent agencies.
What is an independent insurance agent?
California describes an independent agent as a contractor who represents different insurance companies and searches the market for coverage that fits the client’s needs. Unlike a broker, an independent agent must be appointed by each company before placing coverage with it. In practice that means one conversation and one application can produce options from several carriers, and the agent can move your policy to a different carrier later if your needs or the market change.
Independent vs. captive agents, side by side
| Captive agent | Independent agent | |
|---|---|---|
| Companies represented | One company or group | Several companies |
| Licensed by the state | Yes | Yes |
| Usually paid by | Commission from the company | Commission from the companies |
| Comparing options | Within one company’s products | Across several carriers’ products |
| If your carrier non-renews you | You may need a new agent | The agent can often move you to another carrier |
| Product knowledge | Deep on one company | Broad across many |
| Bundling home and auto | With the one company | Often with one carrier, sometimes split for fit |
| Hard-to-place risks | Limited to that company’s appetite | Access to more markets, including specialty carriers |
| Who services claims | Agent and company | Agent and company |
Brokers and direct writers: the other two methods
California lists four distribution methods: captive agents, independent agents, brokers and direct writers.
- Broker: represents the client rather than the insurer and may place coverage with any admitted company. Rhode Island notes brokers are often used for more complicated transactions and generally charge the client for their services because they represent the client.
- Direct writer: sells through the company’s own employees by phone, online or mail, with no agent involved. You handle comparisons yourself.
Some agencies act in more than one capacity depending on the account. What matters is that you understand who the person represents and how they’re paid, which California says you should be comfortable with before you buy.
How independent and captive agents get paid
Rhode Island explains that both independent and captive agents receive a commission from the insurance company. For homeowners and auto policies, that commission is built into what the carrier charges, so you don’t pay the agent separately. We don’t charge any fees for quotes, policy reviews or service. If an agent or broker does charge for advice, they should disclose it in writing before you agree.
Pros and cons of each
Captive agents
- Strengths: deep knowledge of one company’s products, a single brand for all your policies, and sometimes access to company programs only sold through its own agents.
- Trade-offs: if that company’s guidelines change or it declines your home, the agent has no other carrier to offer.
Independent agents
- Strengths: side-by-side options, help finding coverage after a non-renewal, and the ability to remarket at renewal without you starting over.
- Trade-offs: an independent agency may not represent every company you’ve heard of, and service quality varies by agency, so check reviews.
Which type of agent fits your situation
| Situation | Often a good fit | Why |
|---|---|---|
| You love your current company and just want service | Captive agent for that company | Continuity with the brand |
| Your home was non-renewed | Independent agent | Access to several carriers’ guidelines |
| Older roof, past claims or a dog on some lists | Independent agent | Underwriting varies widely by carrier |
| Coastal or high-value home | Independent agent | More markets, including specialty carriers |
| Simple renters or auto policy, you like to self-serve | Direct writer or either agent | Fewer moving parts |
| Home, auto, boat and umbrella together | Either; compare | Bundling options differ |
| Renting out a second home | Independent agent | Landlord and seasonal forms vary by carrier |
| You move to another state often | Agency licensed in several states | Fewer handoffs |
| You want one contact for every personal policy | Either type | Ask who services each policy |
What happens at renewal under each model
Renewal is where the difference shows most. With a captive agent, your renewal comes from the one company. If it changes terms, raises a deductible or decides not to renew, the agent can adjust coverage within that company but can’t move you elsewhere. With an independent agent, the agency can review the renewal against other carriers it represents and, if it makes sense, move the policy without you filling out a new application from scratch.
Neither approach wins every year. A long, claim-light relationship with one company has value, and some people would rather not switch. The point is knowing which options are available to you when something changes. Our guide on reading your declarations page helps you spot renewal changes.
Common myths about independent agents
- “Independent agents add a markup.” For personal lines, carriers pay agents a commission built into what they charge, whichever model they sell through.
- “Independent means unlicensed or less regulated.” Independent agents hold the same state licenses as captive agents and must be appointed by each company they represent.
- “You lose the claims relationship.” Claims are paid by the carrier in either case. A good agency helps you report and follow the claim.
- “Captive agents can’t give good advice.” Many are knowledgeable and attentive. Their options are just limited to one company.
How to choose an insurance agent
Regulators recommend a few checks regardless of the model. Rhode Island lists licensing, credentials, complaints and the company’s financial strength. Washington’s insurance commissioner has a similar page on choosing an insurance agent or broker. We’d add:
- Verify the agent’s license with your state insurance department.
- Ask how many companies they represent for your type of policy.
- Ask who handles your claim calls and how renewals are reviewed.
- Read reviews, and check the agency’s BBB profile. Ours carries an A+ from the BBB.
- Make sure you never feel pressured; Rhode Island stresses that an honest agent won’t push you into a decision.
- Compare coverage, not only cost. Texas regulators note in a consumer explainer that each company’s formula is different.
Why the agent model matters in New England
- Coastal homes. Carriers’ appetite for homes near the water in New Hampshire, Maine and Massachusetts can shift year to year. Access to several markets helps when one tightens.
- Older houses. Knob-and-tube wiring, oil heat and old roofs are judged differently by different carriers.
- Seasonal and second homes. Lake houses and ski condos need forms not every company writes.
- Multi-state families. A home in New Hampshire plus a condo or a student in another state are easier with one agency licensed in several states.
Read more on our New Hampshire homeowners insurance page, our guide to non-renewed and hard-to-place homes, and secondary and seasonal home insurance.
Curious how several carriers would compare with what you have? Send us your current declarations page and we’ll lay the options side by side. Talk to us at (603) 431-4020, email insure@portsmouthatlanticins.com, or fill in the request below. Request a quote. There’s no obligation to buy. About 90% of our quotes go out within 24 hours.
Choosing an agent is a long-term decision. Ask us anything, even if you end up staying where you are.
Frequently asked questions
What is the difference between an independent and a captive insurance agent?
A captive agent sells one company’s policies. An independent agent is appointed with several companies and can compare their policies for you.
What is a captive insurance agent?
An agent who represents a single insurer or group of insurers and submits business only to that company, or gives it first refusal.
Are independent agents more expensive?
Not by design. Both captive and independent agents are typically paid a commission by the insurance company. We don’t charge any fees for quotes or service.
Is an independent agent the same as a broker?
Not exactly. An independent agent is appointed by each company it represents. A broker represents the client and may place coverage with any admitted company.
Can an independent agent help if my home was non-renewed?
Often, yes. Because carriers’ guidelines differ, an independent agent can look for a company whose rules fit your home and history.
How do I check an insurance agent’s license?
Use your state insurance department’s license lookup. To talk to a licensed advisor at Portsmouth Atlantic, call (603) 431-4020.
Related reading
- 13 Tips for First-Time Home Buyers
- Top 10 Independent Insurance Agencies in NH & CT (Oct 2026)
- Contact Us
- Editorial & Accuracy Policy
- Policy Review
- Auto Insurance in NH & CT
- Flood Insurance in New Hampshire & CT
- Homeowners Insurance NH & CT
Sources
- Rhode Island Department of Business Regulation: How to choose an insurance agent (PDF)
- California Department of Insurance: Finding an agent or broker
- Washington State Office of the Insurance Commissioner: Choosing an insurance agent or broker
- TDI consumer explainer on what goes into home and auto insurance costs
- TDI home insurance consumer guide (licensing and complaints)
Already work with us? Reach our team any time through the Service Center.
This guide is general information about how insurance is sold. Licensing and appointment rules vary by state. Portsmouth Atlantic Insurance is an independent agency, and nothing here promises coverage or eligibility with any carrier.