Lots of people ask, what is the difference between an insurance agent and broker? Well, the answer is simple – who the agent represents, determines if they are considered an agent or a broker. An insurance agent represents insurance companies, while an insurance broker represents the purchaser. Both have an ethical duty to provide you with the optimum coverage at the best price, and both are required to register with the state and carry a license, in order to serve you.
Typically, an agent works for a specific company, representing the company within a community. Brokers, on the other hand, work on behalf of the purchaser, and they tend to provide customers with a variety of options and prices from different companies. The goal of both agents and brokers is to provide quality insurance products at a fair price while making a profit. Therefore, when it comes to insurance broker vs agent, the core difference is in who they represent.
Brokers Have Lots of Options from Many Companies
Brokers have what is called a distributor style relationship with the companies that provide insurance products. Brokers, working on behalf of their clients, can consult a variety of companies, and select the best packages at the best price; they, typically, present clients with a variety of options. They have the ability to work on behalf of their clients negotiating lower prices and added benefits. Brokers become the middleman in many senses of the word.
Agents Represent One Specific Company
Agents represent a specific firm; they provide clients with a variety of options from one company, and, typically, know the best deals within a firm. Agents know how to get you those discounts from their company, and are motivated to keep you as a customer because the company may offer the agent incentives for ensuring the clients (your) business remains within the company.
Shop Both Brokers and Agents for the Best Deal
Many people inherently understand brokers and agents represent different interests. However, many people consult both brokers and agents in their search for the best possible coverage.
How to make those differing interests work to your benefit takes time, dedication, and skill. You want to seek out both agents and brokers, getting consults and price comparisons form as many people as possible. Looking at the details within the policies will often provide you with leverage to negotiate. It’s important to make sure you’ve done your own research before making the ultimate decision.
Understand the Details and Ask Questions
Reading the fine print offered by differing policies is one of the keys to ensuring you save as much as possible while getting the best products. Often, if you read the documents, you’ll find small details that make a big difference; details like deductibles matter! People purchase insurance hoping to never need it, however, when you do need to place a claim, you want to know ahead of time what is your deductible.
Combining Policies Saves Money
Adding to a policy is a great way to save. When you combine your home and auto into one policy, you’ll receive a variety of discounts from most insurance companies. People with hobby vehicles like boats, RVs, snowmobiles, etc. save lots by combing their plans. Policies that combine product, require a little bit of extra attention because there are more things to consider.
Get Your Questions Answered
Agents and brokers alike will walk you through the deductibles and details of a policy and will be able to answer your basic questions about it.
It’s important to understand the products you are purchasing, so contact our trusted professionals at WellAway, and let us help you find the right insurance options with the policy products that are just perfect for your needs!