What's the difference between an insurance carrier and an insurance agency?

I have a local agent and he talks about the "carriers" that he works with. What is the difference?

Apr 15, 2016 Boise, ID

Neil Richardson

Apr 15, 2016

The word carrier in terms of insurance is just a synonym for company. An insurance carrier is the company that covers your vehicle and is listed on your policy. An insurance agency is a business that sells coverage through one company or multiple companies. You can normally buy a policy with the direct company or carrier or you can buy a policy through a local agency but the insurance company is who actually provides coverage when an accident occurs.

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