What is an Insurance Broker?Insurance brokers are different from insurance providers. Namely, brokers work for you instead of working for the insurance company. They take all of their experience and knowledge and use it to help you. They search for the policies for your income and automobile, find reliable auto mechanics and shops, and assess your vehicle if you ever need to file a claim. Most insurance brokers are happy to help you over the phone or through email. However, they prefer to look at your vehicle in person. It helps them make the best possible estimate and fully evaluate your situation. As part of their services, they will assess your car, obtain any inspection reports, and take photographs of your car. This will help them compare the coverage that your insurance company provides to the coverage of other insurance providers.
What Benefits Do Insurance Brokers Provide?Insurance brokers provide a good amount of benefits to potential buyers. As mentioned before, they act in your interest, not your insurance company's interest. Additionally, they have taken the time to become educated on the inner workings of the insurance market that might seem confusing to you. They also provide a few other services that are worth noting, including, but not limited to:
- Reducing premiums by searching for available discounts for you and your family
- Acting as a legal representative, explaining the terms and conditions of your contract, your premiums, or any of the small print that doesn't make sense
- Following up on any claims you've filed
- Advising you during your policy renewal or acting as your legal help during any changes that occur during the middle of your policy due to accidents or claims
What's the Difference Between an Insurance Broker and Insurance Agent?On the surface, it may seem insurance brokers and insurance agents are interchangeable. They aren't. While both provide similar services, there are some fairly stark differences between the two.
Cost You'll almost always find a cheaper rate with a broker than you will with an insurance agent. That's because agents often offer lower rates to brokers as part of the deal. Despite the fact that many brokers are working on commission from the insurance company, the rates they offer you are still lower than you would pay otherwise.
Simplicity Buying from a broker isn't a direct process. After all, you're swapping information with them before they scour the insurance market trying to find the best rates and policy for you and your vehicle. However, part of what makes it simpler is that you know they will find the policy that's best for you. You don't have to do any of the guess work.
Speed There's an adage about it taking 10,000 hours of involvement before someone becomes an expert at something. Whether or not most insurance brokers have 10,000 hours or more is probably hard to gauge. They do know their way around the field and, because of that, they are almost right on par with the time it takes an agent to find you something.
Reliability When you tell an insurance broker what you need, they also think about the things you've forgotten, such as additional coverage for floods or other natural disasters that may or may not be covered under basic policies. It's what they're good at, and they'll make sure that your policy contains everything you need to prevent future problems from becoming exponentially worse.
Security Insurance brokers are extremely careful with your information. It's not that agents aren't safe with your information, it's more that agents use networks to find policies for you. During that process, much of your information is sent over networks. No matter how secure, sometimes those servers are hacked. Sense agents work directly with brokers, your information ends up staying where it should - in safe hands.