What’s the difference between a broker and an insurance company?
Often people get confused between the concept of an individual insurance broker and an insurance company. Traditionally, an insurance broker represents a number of different insurance companies. They are informed and knowledgeable when it comes to the types of products and policies offered by the various companies they represent. So for instance, if you go to an insurance broker to get a quote on a car insurance policy, they will get you quotes from the various insurance companies they work with.
A broker essentially helps you find the best coverage for the best price and does a lot of the consumer work for you – comparing rates, finding the best value, and finding a policy that meets your individual insurance needs.
What does an insurance company do?
An insurance company, on the other hand, offers the actual policy. They enter into a contract with the client which basically promises compensation in the case of damage or loss (if it is covered, as per the policy terms).
What is the role of the broker after you purchase a policy?
They work closely with you to ensure that you have the policy that best meets your unique situation, as that situation changes. As new products and coverage becomes available, they make sure you are up to date and informed about your insurance policy. They are always happy to answer any questions you might have and also take care of you and your policy in general when it comes to payments and changes. In the event of a claim, they are also your advocate during the process.
Are there brokers that work directly for an insurance company?
Often in thinking about the job of an insurance broker, most understand these to be independent and as mentioned, capable of representing a number of insurance companies as they search to get you the best deal. However, there are those brokers who work directly for a single insurance company. They are commonly referred to as agents as they only represent one company, meaning that they cannot offer you options. Brokers dealing with multiple insurance companies are better positioned to offer you more flexibility in terms of what they can offer when it comes to coverage and prize, which helps get you a policy fit for your individual needs. Find a broker today if you’re looking for some help.