What is the difference between a captive insurance agent and an independent insurance agent?

A captive agent works exclusively for one insurance company and can sell only that company's policies. An independent agent represents several companies and can offer clients multiple quotes. Captive agents often receive a base salary or draw plus commission, while independent agents typically earn higher commission rates (about 15% on new auto and home policies versus 5% to 10% for captive agents) but cover their own business expenses. Brokers are a third type: they represent the client rather than any insurer.