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We are Augustyniak Insurance Group, an independent agency in Jacksonville. We help homeowners, drivers, and business owners find better coverage across 80+ companies.
This is the question we hear more than almost any other: "Does it cost me more to use you instead of going direct?" The answer is no. Here is exactly how it works.
How Insurance Agents Actually Get Paid
When you buy an insurance policy, the insurance company collects your premium. Out of that premium, the company pays for claims, underwriting, customer service, and its own operating costs.
A small portion of that premium goes to the agent or agency as a commission. In Florida, that is typically between 6% and 14% for home, auto, and commercial insurance. That commission comes from the company's budget, not from your pocket.
This is true whether your agent is independent, captive, or working for a direct company. Someone is always getting paid to sell and service the policy. The question is who.
Agents also earn a smaller renewal commission each year the policy stays in force. That is why long-term service matters to a good agency. They keep your business by earning it every year.
Whether you need home insurance, auto insurance, or business insurance, the commission structure works the same way.
The Real Difference: Agent vs. TV Commercials
When you buy directly from GEICO or Progressive online, you skip the agent. But your premium does not go down because of it. Skipping the agent does not typically lower your rate. Those companies spend billions of dollars every year on television commercials and online marketing.
That advertising budget comes from the same place an agent's commission would. The money goes somewhere either way. The question is whether you want it to go to a person who helps you choose the right coverage or to a marketing department that runs TV ads.
With an independent agent, the money goes to someone who shops your rate across multiple companies, reviews your policy before each renewal, and fights for you when you file a claim.
With a direct company, that same money goes toward national advertising and centralized marketing. Similar cost, very different service.
Commission structures can vary by policy type and company. Some commercial or specialty placements may include disclosed service fees. But for standard personal insurance like home and auto, you typically pay nothing extra to work with an independent agent.
Who Pays What: Independent, Captive, and Direct
Paid by the insurance company. Shops 10 to 80+ companies for you. You pay the same premium. No extra fee.
Paid by their one company through salary and commission. You pay the same premium. But you only see one option.
No agent. The money that would go to an agent goes to advertising instead. You pay a similar premium. No one reviews your coverage or follows up at renewal.
In most cases, the cost to you is similar across all three models. The difference is what you get for it.
Why an Independent Agent Is Incentivized to Find You the Best Rate
Here is something most people do not think about: an independent agent only keeps your business if they perform. If they quote you a rate that is too high and you find a better one somewhere else, they lose the policy. And the commission that comes with it.
That means an independent agent is naturally motivated to find you the best price. Not because they are generous, but because that is how they keep you as a client year after year.
A captive agent does not have this pressure. They sell one company. If that company's rate goes up, the agent cannot move you. They have nothing else to offer.
A direct company does not have this pressure either. You are a number in a system. Nobody is reviewing your renewal. Nobody is comparing your rate to other options. If you do not shop for yourself, nobody shops for you.
For the full comparison of how independent and captive agents work differently: Independent Agent vs. State Farm: Which Is Better for Jacksonville Homeowners?
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Call (904) 268-3106 Compare Your Rate Across 80+ Companies Augustyniak Insurance Group · 80+ companies · 2,250+ reviewsThe Question Is Not Whether You Pay an Agent. It Is Whether an Agent Is Working for You.
Every insurance transaction involves a cost to acquire and service the customer. In every model, that cost is built into the premium. You are already paying for it.
The only choice you have is where that money goes. It can go to someone who shops your rate, reviews your coverage, and picks up the phone when you have a problem. Or it can go to a Super Bowl commercial. If you want the first option, call (904) 268-3106.
For the complete guide to choosing the right agency: How to Choose the Best Insurance Agency in Jacksonville, FL.
Frequently Asked Questions
Does it cost more to use an independent insurance agent?
No. Your premium is the same. The insurance company pays the agent a commission from its operating budget. You do not pay anything extra for the agent's service.
Do independent agents charge fees?
Most independent agents, including our agency, do not charge fees for quoting or placing personal insurance policies like home and auto. Some agencies charge fees for certain commercial or specialty policies, but they are required to disclose that upfront.
Why would an insurance company pay an agent's commission?
Because it is cheaper than the alternative. Direct companies spend billions on advertising to acquire customers. Paying agents a commission is a more cost-effective way for many companies to reach customers, especially in complex markets like Florida where local expertise matters.
Is buying insurance directly online cheaper?
Not necessarily. Skipping the agent does not typically lower your premium. Direct companies save on agent commissions but spend heavily on advertising. Those costs are built into your rate.
In our experience, the rates from direct companies are often comparable to or higher than what an independent agent can find by comparing multiple options.
Does not using an insurance agent lower your premium?
No. The commission an agent earns comes from the insurance company's operating budget, not from a surcharge on your premium. When you buy direct, that money goes to advertising instead. Your rate stays about the same either way.
How does my agent make money if I switch to a cheaper company?
The agent earns a commission from whichever company you end up with. If they move you to a company that saves you $500 per year, they earn a commission on the new, lower premium. They earn less per policy, but they keep you as a client. Good agents prioritize the long-term relationship.
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Call (904) 268-3106 Augustyniak Insurance Group · 12058 San Jose Blvd, Jacksonville FL
Susan Augustyniak, CIC
Vice President, Augustyniak Insurance Group
Certified Insurance Counselor with 25+ years in the industry. Before joining Augustyniak Insurance Group in 2008, Susan spent nine years at Nationwide Insurance as a commercial underwriter, large loss property claims adjuster, and sales manager. She holds a Florida 2-20 General Lines Agent license and helps Jacksonville homeowners navigate coverage decisions across Duval, St. Johns, Clay, and Nassau counties. Published May 2026.