Direct Writing Agent

What Does Direct Writing Agent Mean?

A direct writing agent is an individual who sells insurance policies exclusively on behalf of a single insurer. Unlike independent agents, they do not connect customers with multiple insurance companies; instead, they focus solely on selling the insurance products of one company.

Direct writing agents are also known as captive agents.

Insuranceopedia Explains Direct Writing Agent

Direct writing agents serve as an alternative to independent insurance agents, who sell policies from multiple insurance companies and are not bound by a contract to represent only one insurer.

Many of the largest and most recognized insurance companies employ direct writing agents. State Farm, for example, sells its auto and home policies almost entirely through captive agents. These professionals typically qualify as employees of the insurance company for which they sell policies, allowing them to avoid certain expenses that independent agents often incur, such as rent for an independent office.

The tradeoff for buyers is that a direct writing agent can only quote one company’s rates, so shoppers who want to compare pricing across insurers will need to contact several captive agents or use an independent agent instead. Our list of the best car insurance companies includes both captive-agent insurers and those that sell through independent agents.