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What is the Difference Between an Insurance Agency and an Insurance Company?

The insurance industry is composed of different kinds of operations. Let’s explore these two.

Insurance is an essential service that helps people to manage notable expenses pertaining to health, property, vehicles, and more. Every day, people explore new insurance options, but the industry is large. This can make it confusing when you are trying to find new insurance. One key area of interest for policy owners is the difference between an insurance agency and an insurance company. In this article, we will address these differences and what they mean for you.

Insurance Companies vs. Insurance Agencies: A Breakdown

Since insurance is so important, it is only natural to want to find the best option. Insurance companies and insurance agencies do work together, but they are actually not the same thing. Let’s discuss where they differ.

What is an Insurance Company?

An insurance company is a company that provides insurance policies. These groups are the ones who actually offer insurance to policyholders. They are responsible for creating the plans, writing out the language, and setting the standards for what is and is not covered.

Basically, these are the groups that provide coverage. In the event that you file an insurance claim, they will be responsible for handling payments and confirming that everything is in good order. Anything pertaining to actual insurance matters will go through this company.

What is an Insurance Agency?

An insurance agency is an external company that has the power to sell insurance policies. Insurance agencies tend to be more customer-facing, offering key insights to existing and future policyholders. These individuals can work with you to establish an insurance plan and will be able to provide you with details like the monthly cost and key features. They can also help you to better understand which policy will help you to meet your needs.

Many people work with insurance agencies to simplify the process. Since the average person is not an expert in insurance, insurance agencies can help their customers to better understand and meet their insurance needs. It is always beneficial to work with experts, as you will generally have a more positive experience. Though some insurance companies have ways to navigate purchasing insurance on their website, an insurance agent can provide a lot of help and peace of mind.

The Takeaway

Anyone who is looking to invest in their own insurance will find that working with an insurance agency can be a great approach. If you are looking for a Denver insurance agency, there are plenty of wonderful options to choose from—and we are happy to help you. We are currently helping people in Denver to find the best policies for their needs. Contact us directly to get started and learn more about what kind of plans and policies we can find for you. You have questions, and we have answers!

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