Question
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?
Answer
Great question! The word "carrier" in terms of insurance is just a synonym for company. An insurance carrier is the insurance company that covers your vehicle and is listed on your policy (e.g. Allstate, State Farm, etc.). An insurance "agency" is a business that sells insurance coverage through one, or multiple, companies.
When shopping for car insurance, you can buy a policy directly with the carrier or through a local agency, but the company is who actually provides coverage when an accident occurs, not the agent.
In you're situation it sounds like your agent works with multiple carriers (or companies) to provide you with the coverage you have. Keep in mind that if you ever want to compare rates from multiple carriers easily online, you can always use The Zebra.
Insurance is complicated, but it doesn't have to be.
The Zebra searches all of the top insurance companies, in one place, so you can compare the cost and coverage you need to protect your car, home and other property.
Step 1: Tell us a little about yourself
Choose an insurance product and enter your zip code to get started. No phone number required.
Step 2: Sip your coffee while we find the best quotes
Enter the necessary information and then sit back while we find quotes from 100 top insurance carriers.
Step 3: Compare your quotes
Compare quotes side-by-side to find the right match for you, whether it's home, auto, or more.
Step 4: Let our agents do the hard work for you
Once you pick your policy, our agents are here to get you over the finish line. Then just relax and enjoy your savings.