Auto insurance companies typically use in-house agents who are paid a salary with some commission. This is because their agents focus on both selling new policies and providing customer service. Separating sales and customer service allows companies to achieve stability and increase productivity, with sales agents concentrating on new business while customer service agents focus on retaining existing customers.

1. Case study
1 Auto insurance companies are more likely to use an in-house agent. This is because
their agents focus on customer service as well as selling new policies. Insurance agent’s
main goal is to sell new policies. They usually do not handle the customer service side of the
house. Auto insurance companies in-house agents are usually paid salaries with some
commission for sells. This reduces the need to hire an independent agent who could also be
promoting other companies products.
2 Auto insurance companies may separate the tasks of selling and customer service to
achieve stability between activities. It also could increase productivity because the workers
focus is on certain tasks. The sales department will concentrate on getting new business and
work on commission. The customer service department will focus on customer satisfaction
and keeping existing customers. They will work on an hourly wage or salary.