Customer direct to carrier

[NCAgent828]

As an agent my job is obviously to represent my clients best interest to the carriers I’m appointed with. My question is, do the carriers offer lower rates if they go to them directly? Or is it the same price for them and they just give me commission?

I’m new at this so please excuse my non knowledge of some of these things.

 

[KeithG]

Like EDDS or what?

 

[NCAgent828]

I don’t even know what that is yet. Lol. Like I said I’m green to Independent. Came from captive.

What I mean is if I offer a product with Travelers and the client goes and gets a quote from Travelers direct. Will they be less expensive direct or the same as me?

 

[KeithG]

Ok i misread your question lol

 

[NCAgent828]

No problem. Do you know anything about this?

 

[goillini52]

As an agent my job is obviously to represent my clients best interest to the carriers I’m appointed with. My question is, do the carriers offer lower rates if they go to them directly? Or is it the same price for them and they just give me commission?

I’m new at this so please excuse my non knowledge of some of these things.

They should get the same price whether they buy from you, or direct from the company.

 

[NCAgent828]

Ok good to know. A family member was asking. The logic I have heard is the ones who don’t use independent agents pay even more in advertising than they do the agent. I believe you were involved in that thread goillini52. I so appreciate your input to things. I’ve seen your name a lot and have been researching as much as possible. I hope to get off the ground soon. Was in the relocation business and worked with lots of realtors and some builders and other resources I hope to carry on to my own agency. Taking a leap of faith and grinding it out!

 

[goillini52]

Ok good to know. A family member was asking. The logic I have heard is the ones who don’t use independent agents pay even more in advertising than they do the agent. I believe you were involved in that thread goillini52. I so appreciate your input to things. I’ve seen your name a lot and have been researching as much as possible. I hope to get off the ground soon. Was in the relocation business and worked with lots of realtors and some builders and other resources I hope to carry on to my own agency. Taking a leap of faith and grinding it out!

Good luck!

 

[Markthebroker]

Certain carriers (Hartford is one of them, I heard Progressive is too) will offer different rates to brokers vs customers direct.

Even if the carrier gives the same rate, then IF the rating information is the same, they will get the same price. However, if they give different information (which happens much more than you might guess) then they will get a different price.

I work 100% off referral now, so I rarely have to deal with any sort of competition.

 

[VolAgent]

Progressive most definitely has different rates for direct versus agents. While I don't have them, from what I've heard from other agents, Progressive Direct is designed to give a low initial rate. While through an agent often starts out higher but seems to become cheaper relative to direct over time.

Lots of stories of agents getting called by prospects and clients because they found a cheaper rate through Progressive Direct than what the agent quoted. Often doesn't end well, accusations of fraud, cheating, etc. Why anyone would want to rep a company that sets them up for these accusations is beyond me.

Also as Matt mentioned, lots of ways to play with coverage and rating information as well to get a different rate even if using the same rate tables.