3 Common Myths About Independent Insurance Agencies (And What NJ Consumers Should Know)
- Adam Overmyer
- 2 days ago
- 4 min read
Updated: 6 hours ago
If you’ve ever shopped for insurance online, you’ve probably asked yourself:
“Am I paying extra to use an agent?”
“Would it be cheaper if I just went direct?”
These are fair questions—and ones I hear all the time.
The reality is, there are a few major misconceptions about how independent insurance agencies actually work. And in many cases, believing these myths can cost you more money—or worse, leave you underinsured when it matters most.
Let’s break down three of the most common myths I see from New Jersey homeowners and business owners.
Myth 1: Independent Insurance Agencies Are More Expensive
This is probably the biggest misconception out there.
A lot of people assume that going directly to an insurance company—whether it’s online or through a national brand—will be cheaper because you’re “cutting out the middleman.”
In reality, it often works the opposite way.
As an independent insurance agency, we work with multiple insurance companies. That means instead of getting one quote, you’re getting access to several carriers that are competing for your business.
Direct companies can only offer their own product. If their pricing isn’t competitive for your situation, there’s nowhere else to go.
We’re able to:
Compare multiple options at once
Find the most competitive pricing for your specific risk
Re-shop your policy over time as the market changes
In today’s insurance market—especially here in New Jersey, where rates and underwriting guidelines are constantly shifting—having access to multiple carriers is a major advantage.
We shop top-rated carriers for you—no extra cost.
Myth 2: You Pay Extra to Use an Insurance Agent
Another common belief is that working with an insurance agent adds an extra layer of cost.
That’s not how it works.
You do not pay the agency directly for most personal insurance policies. The insurance company pays the agent a commission, which is already built into the premium, whether you go direct or not.
In other words:
The price is generally the same
But with an agent, you’re getting guidance, advice, and support
Most commissions fall in the range of 10–15%, depending on the policy and carrier. And importantly, our goal is to build long-term relationships—not just sell a policy once. That means making sure your coverage is right and continues to make sense year after year.
For transparency, there are some situations on the commercial side where broker fees may apply, but those are clearly disclosed upfront.
For the average homeowner or auto policy, there is no additional cost to work with an independent agency.
We’ll review your current policies and let you know if there are gaps or savings.
Myth 3: Insurance Agents Don’t Add Much Value
This is where the difference really shows up.
A lot of people think insurance is just a transaction—you pick a policy, pay the premium, and move on.
But when something changes—or something goes wrong—that’s when having the right advisor matters.
A Real Person—Not a Call Center
When you work with an independent agency, you have a dedicated point of contact.
You’re not calling a 1-800 number. You’re not explaining your situation to a different person every time. You’re not dealing with a chatbot.
You have someone who already knows:
Your home
Your policies
Your past claims
Your concerns
That alone makes a big difference in both service and response time.
Your Personal Insurance Advisor
We’re not just here when you buy a policy.
We’re here to:
Review your coverage over time
Adjust for changes in your life or business
Make recommendations as the insurance market shifts
That might mean increasing liability limits, adding an umbrella policy, or identifying gaps you may not even be aware of.
Claims Support When It Matters Most
This is the part that often gets overlooked—until it’s needed.
When you have a claim, the insurance company represents the insurance company.
As your agent, we represent you.
We help:
Guide you through how to report the claim
Set expectations from the start
Avoid common mistakes that can delay the process
Step in if something isn’t going smoothly
When something goes wrong, you don’t want a call center—you want someone in your corner.
Proactive Advice—Not Just Reactive Service
We’re also seeing trends across the market every day.
Things like:
Non-renewals due to roof age or prior claims
Home inspections are becoming more strict
Coverage gaps that aren’t obvious until there’s a loss
Our job is to help you stay ahead of those issues—not react to them after the fact.
No call centers. No bots. Just real advice tailored to you.
Frequently Asked Questions About Independent Insurance Agencies
Is it cheaper to use an independent insurance agent?
In many cases, yes. Independent agents can compare multiple insurance companies at once, which often leads to more competitive pricing than going directly to a single carrier.
How do independent insurance agents get paid?
Insurance agents are paid a commission by the insurance company. This commission is already built into the premium, whether you go through an agent or buy direct.
Do I pay more if I use an insurance broker?
No, not for most personal insurance policies. The cost is generally the same, but you receive added guidance, support, and access to multiple carriers.
Can an insurance agent help with claims?
Yes. An independent agent can guide you through the claims process, help set expectations, and assist if any issues come up along the way.
What’s the difference between an independent agent and a direct insurance company?
A direct insurance company only offers its own products. An independent agent works with multiple carriers and can compare options to find the best fit for your needs.
The Bottom Line
Independent insurance agencies aren’t more expensive. You don’t pay extra to use one. And the value goes far beyond just placing a policy.
You’re getting access to multiple insurance companies, real guidance on your coverage, and a dedicated advisor who’s there when you actually need help.
If you have questions or just want a second opinion on your current coverage, I’m always happy to take a look.
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