Comparing Captive Agencies

[Warren Graham]

I apologize if this has already been answered. I searched the forums and couldn't find any posts that address this. Has anyone compared State Farm, Allstate, Farmers, etc. to see what the pros and cons of being an agent with each company are? I think something like that would be helpful for people like me who are trying to determine which agency might offer the best fit for me. I can do the research, but I wanted to check and see if someone else has already done that legwork first.

 

[fed up]

I have had a Farmers Agency, worked for Allstate agents and Nationwide agent and so much of what you want to know depends on the agent if you work for one or the carrier if you become an agent.
right now I would not touch an Allstate agency until their current CEO retires or is fired. He has taken a once proud company and turned it into an insurance company that will send as much business overseas as he can in an effort to save money and increase his bonus at the end of the year.
Farmers has some great product but so much depends on your location with them. They constantly try to enter a market and buy business by lowering their underwriting or by placing an agent on every street corner. If losses get to great they start taking rates and crush their agents who can no longer keep their customers because the rate increase affects everyone or they will change your contract with a "take it or leave us" mentality.
The nationwide agent was recently forced to become an independent which was great because he had the money to buy Books of Business from less fortunate agents but he turned around and sold his company as soon as the dust settled and made a nice profit. How much of business that you bring in will YOU benefit from?
If you work for an agent or agency you will get a salary plus some commission on the business you write as you learn the ropes. If you own an agency you better have deep pockets for 3 years so you can pay your bills and any staff until the renewals start to grow

 

[Patriot1]

"fed up", I will not mention the company, but you are SPOT-ON about their approach...not just new markets either.

 

[Markthebroker]

I apologize if this has already been answered. I searched the forums and couldn't find any posts that address this. Has anyone compared State Farm, Allstate, Farmers, etc. to see what the pros and cons of being an agent with each company are? I think something like that would be helpful for people like me who are trying to determine which agency might offer the best fit for me. I can do the research, but I wanted to check and see if someone else has already done that legwork first.

In my area in Ca, I would definitely put State Farm at the top, but their underwriting is narrow, especially on commercial. Next I would take Farmers. As far as Allstate, I'd rather swallow screws than go to Allstate. AAA is an option, but I don't know much about them.

 

[goillini52]

I'd rather swallow screws than go to Allstate.

 

[Markthebroker]

Dude...

In all seriousness, I gotta remember, no matter how bummed out I get, or how many bad days I have, at least I don't have something in my brain telling me to swallow forks and bits of metal.