Buying insurance may seem like a straightforward task — go online, get a quote, pay the premium, and you're covered. But as Insurance Hour host Karl Susman reminded listeners in his episode "Comparison of Insurance Purchasing Options," the way you buy insurance can matter just as much as what you buy.
With over 30 years of industry experience, Susman walked through the three primary ways consumers can purchase coverage: directly from the insurance company, through a captive agent, or through an independent broker. Each path offers advantages — and hidden pitfalls — that can affect how well you're protected when it matters most.
This breakdown takes Susman's real-world insights and translates them into a practical guide for anyone navigating today's increasingly complex insurance landscape.
Susman began with the most straightforward option: purchasing insurance directly from the carrier.
In the past, this meant mailing in paper forms with a check enclosed — a process that now sounds quaint in the digital age. Today, buying direct usually involves calling the company's sales center or using its website.
Fewer middlemen. You deal directly with the insurance company — no agents, no intermediaries.
Immediate access. You can often get quotes, bind coverage, and make payments online 24/7.
Transparency. There's no concern about an agent's bias or commission-driven recommendations.
But Susman cautioned that simplicity can come at a price: you lose your advocate.
"You don't have anybody that's there to look out for you," he explained. "If there's a claim and you're not happy with how it's being handled, it's just you and the insurance company — one on one."
That lack of representation becomes critical when disputes arise over coverage or claim handling. Without an agent or broker, consumers must navigate complex policy language and claims departments on their own.
Susman also debunked a common misconception — that buying direct automatically saves money.
"Ninety-nine point nine percent of the time," he said, "you're paying the same rate, whether you go directly to the company or through a broker."
Insurers file standard rates with regulators, meaning that price differences between distributi ...
