Generally speaking, when you buy something direct you cut out "the middleman" - a retailer buys wholesale from a manufacturer, then marks up the product's price and sell it to you. When dealing with insurance, this is not always the case.
In this day and age there are plenty of "direct writer" insurance companies out there. These companies "cut out the middle-man" by selling direct to you, rather than through an agent. However, while you may think you are saving money by going direct, that typically isn't the case. Moreover, by dealing directly with an insurance company, a consumer takes on a level of risk that they may not realize even exists.
Traditionally, insurance companies did not sell to the public. Instead, their products were offered to consumers by "agents" who had to maintain professional standards and be licensed to deal directly with the public. Consumers actually paid the agent nothing because it was the insurance company who paid the agent a commission, and this commission was not added to the retail price.
Today, the agency system is still in place throughout the U.S. and you can find dozens if not hundreds of local independent agents in your telephone book or internet guide. However, thanks to the internet you can also go directly to many insurance companies and get a quote. If you like the quote you can often buy a policy by filling out a few more forms right on the spot.
Insurance coverage is about price, service and quality. Finding the right agent makes quite a difference in the value you receive. Many agencies only deal with one company and one brand of insurance. However, when you choose an independent agent, you get other options.
