What is an Insurance Broker?
An insurance broker is someone who works on the behalf of clients to find sources of insurance for them, their family or their employees. A broker discusses insurance needs with their client then work to find them the best rates and coverage. Insurance brokers can also help their clients file claims and settle them with the insurance company.
Insurance brokers can help you acquire any kind of insurance;
- Health insurance
- Auto insurance
- Home insurance
- Liability insurance
Insurance brokers work off of commissions that are paid by insurance companies. This doesn’t mean a policy through an insurance broker will cost you more though. When you contact an agency yourself an insurance agent will be the one to make the sale on the policy and receive the same commission. Read on to find out how agents and brokers differ.
Difference Between an Insurance Broker and an Agent
Insurance brokers and insurance agents share many of the same job responsibilities which is why so many people get the two confused. To add to the confusion insurance brokers are sometimes called independent insurance agents.
However, if you are trying to get the best deal possible on insurance of any kind then an insurance broker will provide you with better service than an insurance agent. An insurance agent is a representative of one specific insurance company which means they are really working for the company not you. In contrast, an insurance broker doesn’t have an alliance with any particular insurance agency and sells policies for a number of companies.
Because of this significant difference an insurance broker will be able to negotiate on your behave much better than an insurance agent.
Benefits of Using an Insurance Broker
As mentioned above the primary benefit of using an insurance broker is their negotiation experience. They are working for you to get the best deal possible, regardless of who the insurance provider is. They know what can be negotiated and have made contacts in the insurance industry that can help you get a great policy.
Their experience dealing with insurance companies is also another invaluable advantage of using an insurance broker. They know what insurance providers are willing to give on, when’s the best time to buy insurance and are well versed in the lingo of the insurance industry.
Though the internet has made it easier to research insurance policies, it can still be very time consuming and tedious to learn all of your options. An insurance broker will do the leg work for you and explain everything free of charge, so why not enlist their help and safe yourself all the hassle.
Finding the Best Insurance Broker
Getting recommendations from friends and family is one of the best ways to find a reliable insurance broker. There are also a number of resources online that can help you locate insurance brokers.
Regardless of how you find an insurance broker you’ll want to make sure they are licensed to work in your state, which is required in most areas of the country. There are also additional certifications and continuing education which insurance brokers should take part in to best serve their clients.
It’s also preferable if they are members of the American Insurance Association. AIA insurance brokers must follow ethical guidelines established by the organization if they want to be members in good standing.