# Insurance agent

> What an insurance agent is, how agents are licensed and paid, the difference between captive and independent agents and how to check a license.

Canonical page: https://statecover-guide.com/glossary/insurance-agent/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

An insurance agent is a person or business licensed by the state to sell and service insurance policies for one or more insurance companies. An agent represents the insurance company, not you, and is paid by the insurer rather than by you.

## How it works

There are two main kinds of agents:

- **Captive (exclusive) agents** represent a single company.
- **Independent agents** represent several companies and can compare their prices.

Agents are typically paid a commission, which is a portion of the premium the insurer passes to the agent for their work. The insurance industry calls agents and brokers "producers," and both need a license from the state insurance department, which you can check before you buy.

An agent can help you get car insurance quotes, choose coverages and limits, apply discounts, make changes during the policy term and understand the claims process. Because an agent works for the insurer, ask questions until you understand what each coverage does and does not include, and keep copies of everything you sign.

Brokers work differently: they look for coverage on your behalf and, in some states, may charge a separate fee.

## Related terms

- [Captive agent](https://statecover-guide.com/glossary/captive-agent/)
- [Independent agent](https://statecover-guide.com/glossary/independent-agent/)
- [Insurance broker](https://statecover-guide.com/glossary/insurance-broker/)
- [State insurance department](https://statecover-guide.com/glossary/state-insurance-department/)
- Guide: [Comparing car insurance quotes at renewal](https://statecover-guide.com/saving/shopping-at-renewal/)

## Sources

- [California Department of Insurance, Automobile Insurance Terms](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/autoterms.cfm) — agent, commission, producer and license definitions
- [California Department of Insurance, Automobile Insurance Text Version](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/auto101.cfm) — agents represent and are paid by insurance companies, brokers charge a fee