Why Use an Independent Insurance Agent?
The question everyone asks: "Should I use State Farm, go direct to Progressive, or use an independent agent like TCDS?" Here's the honest answer most agents won't give you.
The Three Types of Insurance Agents (Explained Honestly)
Captive Agents (State Farm, Alfa, Allstate)
Captive agents work for ONE insurance company. They can only sell you that company's products. They're paid by that company and their job is to sell you their insurance—whether it's your best option or not.
Examples: State Farm, Alfa, American Family, Farmers (in some states)
Direct Writers (Progressive.com, Geico.com)
Direct writers let you buy insurance online or over the phone with no agent. Lower overhead means they can sometimes offer lower prices. But you're on your own for claims, coverage questions, and comparison shopping.
Examples: Progressive Direct, Geico, Esurance, The General
Independent Agents (TCDS)
Independent agents represent 50+ insurance companies. We get paid the same commission regardless of which carrier you choose, so our only incentive is finding you the actual best rate and coverage. We work for YOU, not the insurance company.
Examples: TCDS, local independent agencies
The Honest Comparison
| Feature | Captive Agent (State Farm, Alfa) | Direct Writer (Progressive.com) | Independent Agent (TCDS) |
|---|---|---|---|
| Number of Carriers | 1 | 1 | 50+ |
| Who They Work For | Insurance Company | Insurance Company | YOU |
| Price You Pay | Same as direct | Same as agent | Same as direct |
| Local Office | |||
| Claims Advocacy | Limited (conflict of interest) | ||
| Easy Carrier Switching | |||
| Comparison Shopping | You do it yourself | Limited (4-5 carriers) | 50+ carriers |
Real Alabama Data: Who Saves More Money?
We tracked 1,000 quotes in 2024 comparing what customers paid with captive agents vs. what they could have saved using an independent agent:
State Farm Customer Average: $2,234/year
What they paid with State Farm captive agent
Alfa Customer Average: $2,156/year
What they paid with Alfa captive agent
Independent Agent Average: $1,687/year
What same customers could have paid by comparing 50+ carriers
Average Savings: $547/year
That's $2,735 saved over 5 years by using an independent agent instead of a captive agent.
Common Myths About Independent Agents (Debunked)
Myth #1: "Independent agents cost more"
TRUTH: You pay the exact same premium whether you buy direct, through a captive agent, or through an independent agent. Insurance companies set the price—agents don't mark it up.
Example: A $1,500 Progressive policy costs $1,500 whether you buy it at Progressive.com or through TCDS. Zero difference.
Myth #2: "State Farm/Alfa are the cheapest in Alabama"
TRUTH: State Farm and Alfa are great companies, but they're rarely the cheapest. Our data shows they're the cheapest option only 12-18% of the time.
State Farm and Alfa spend millions on advertising to make you think they're the cheapest. But the only way to know is to actually compare quotes—which their captive agents can't do for you.
Myth #3: "I'll get better claims service with a big-name carrier"
TRUTH: Claims are handled by the insurance company, not the agent. But independent agents advocate for YOU during claims, while captive agents work for the company paying the claim (conflict of interest).
When you have a claim, TCDS calls the insurance company on your behalf, explains the situation, and pushes for fair settlement. Captive agents can't push too hard—they work for the company denying your claim.
Myth #4: "I have to switch carriers every year to get the best rate"
TRUTH: With an independent agent, we automatically re-shop your insurance every year at renewal. If another carrier is cheaper, we switch you. No work required on your end.
With a captive agent or direct writer, YOU have to remember to shop around every year. Most people don't, which is why they overpay by $400-600/year.
When SHOULD You Use a Captive Agent?
We believe in radical honesty. Here are the rare situations where a captive agent might make sense:
You've been with them 20+ years and have massive loyalty discounts
Some carriers reward 20+ year customers with discounts that are hard to beat. But you should still get a quote from us to verify.
You have a unique situation that ONE carrier specializes in
Example: Hagerty specializes in classic cars. If you have a 1967 Mustang, Hagerty (which we also represent) might be your only option.
You're related to the agent and want to support family
Totally valid reason! Just know you're probably paying $400-600/year more to support them.
The Bottom Line
For 90% of Alabama drivers, an independent agent saves money and provides better service than captive agents or going direct.
You pay the same price, get a local agent who answers the phone, and have access to 50+ carriers instead of just one. The only reason to use a captive agent is if you're already getting a great rate and don't want to bother comparing.
But if you're reading this page, you're probably not getting the best rate. Let's fix that.