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 loved ones or their employees. A broker discusses insurance needs with their client then work to find them the best rates and coverage. Insurance brokers will also help their clients file claims and settle them with the insurance company.
California insurance brokers will help you acquire any kind of insurance;
- Health insurance
- Auto insurance
- Home insurance
- Liability insurance
Insurance brokers in CA work off of commissions that are paid by insurance companies. This doesn’t mean a policy through an insurance broker costs 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. Continue reading to find out how agents and brokers differ.
Difference Between California Insurance Brokers and Agents
Insurance brokers and insurance agents in California share most of the same job responsibilities which is why lots of 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 type then an insurance broker can 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, California insurance brokers do not have an alliance with any particular insurance agency and sells policies for a number of companies.
Because of this significant difference an insurance broker in CA will be able to negotiate on your behave much better than an insurance agent.
Benefits of Using an Insurance Broker in California
As mentioned above the primary benefit of using an insurance broker in California is their negotiation experience. They are working for you to get the best deal possible, no matter who the insurance provider is. They are fully aware what can be negotiated and have made contacts in the insurance industry that will 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 prepared 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 your options. California insurance brokers will do the leg work for you and explain everything at no cost, so why wouldn't you enlist their help and safe yourself all the hassle.
Finding the Best Insurance Broker in California
Getting recommendations from family and friends is among the best ways to locate a reliable insurance broker in California. Additionally, there are a number of resources online that will 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 California. There's also additional certifications and continuing education which insurance brokers should be a part of 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.