When you are shopping for insurance in Lake Charles Louisiana vocabulary is essential to understanding who you are purchasing insurance from. This article aims to define one of the most common terms in the insurance sphere, “insurance carrier.” We explain the difference between an insurance carrier and an insurance provider.
An insurance carrier
An insurance carrier is a company that sells insurance. The term insurance carrier is often confused with an insurance company, insurance provider, insurance agency, or insurance brokerage. However, insurance carriers sell the policies, such as homeowners, business, life, and car insurance, directly to policyholders. Two of the more well-known insurance carriers companies are Nationwide and Progressive Insurance.
How an insurance carrier differs from an insurance agent
Insurance agents are usually employees of the carrier that sell policies on the insurance carrier’s behalf. Most policyholders work through an insurance agent to manage their policy (file claims and make changes to their policies).
However, the carrier is the one that insures your possessions, collects your premium, and pays you for a covered loss.
How insurance carriers work
Most carriers sell their products online or through an agent in today's marketplace. Simply visit their web address, click on a product-specific quote form (example, auto quote, homeowners quote, etc), fill out the requested information, choose your coverage and deductible, and bind your policy with a payment. Another option is to work with a Lake Charles insurance agent employed by the carrier. Most carriers have a local office with insurance agents on-premise.
If you choose to meet with a Lake Charles insurance agent, you will have the opportunity to ask product-specific questions, discuss options and endorsements, and discover if you qualify for additional discounts. Working with an insurance agent affords you the ability to provide personal details that can help the agent tailor your insurance to your specific needs. Agents can also bind and print your policy while you are in the office. Please note that online quote forms and in-person quotes do not bind your insurance, you need to make a payment before exiting the website or leaving the insurance agent's office to secure coverage.
Should you need to file a claim, your agent will pair you with an insurance carrier’s underwriter. An underwrite works for the carrier and is the one responsible for determining the value of your loss. The underwriter then submits his findings to the insurance carrier for payment. The payment comes from the insurance carrier, not the underwriter or insurance agent.
Insurance carrier vs. insurance provider
The terms insurance carrier and insurance provider are interchangeable. Both terms are used when describing the company that is responsible for paying for a covered loss. Both identify the entity that sells insurance products to the public, either directly or through an agent.
If you are researching car insurance in Lake Charles Louisiana or homeowners insurance in Lake Charles, La, and would like to shop for the best insurance rates, consider calling an independent insurance broker. Independent insurance brokers usually write insurance policies for more than one insurance carrier. By offering more than one carrier, the brokerage is able to shop multiple policies to help their clients find the coverage they need at the best price, often saving you money on your policy. When you work with a single insurance carrier, they offer one rate. And while shopping with an independent agent may not yield the cheapest car insurance in Lake Charles La, you can be sure that they have vetted the companies they work with to ensure their clients will be taken care of should an incident or accident happen.
Insurance Carrier vs Insurance Agency, Insurance Lake Charles, Lake Charles Insurance
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