Is an agent more expensive?

Is it more expensive to buy insurance from an agent?

Some people have come to us with apprehension because they feel that buying a policy through an agent is more expensive than buying a policy on your own. This thinking is misguided. All policies that are sold have to be sold by someone that possesses an insurance agent's license, so there's always an agent. Some companies advertise heavily that insurance is simple enough that anyone can do it. The constant bombardment of advertising messages can lead a person to believe that “everybody saves 15%.” These ad campaigns are designed to trigger a curiosity that can cause a person to shop around and is a way that insurers can generate a stream of new policyholders. In the end, the high cost of advertising can actually lead to a much higher cost structure for the policy. Sometimes the first six months or one year of a new policy from an insurer like this is offered at a discounted rate, but in fact the rate goes up after this honeymoon period is over.