An insurance broker is essentially an independent salesperson or team of salespeople that has access to rates from several different insurance companies - which means they can more easily find the best coverage and price for you.
How is an Insurance Agent Different from a Broker?
There are three common options for buying insurance you can purchase through a broker, buy directly from an insurance company or purchase through an agent. The insurance broker can offer a variety of coverage choices and a range of prices, simply due to the fact that they deal with many different insurance companies.
A typical insurance agent works for one company in particular and makes recommendations to clients based on that one company's available policies. A broker is similar to an agent in that they both work to structure and sell policies, help settle claims in a timely manner and often work on a commission basis. However, while an agent is an insurance company representative, a broker is an independent businessperson, and can shop multiple insurance companies.
When you are making the decision about whether or not to purchase insurance there are many important things to consider. You must first know your specific needs for the policy and, in turn, what it offers in terms of protection. An insurance broker can help you sift through all of the rubble and help you to make the right choice.
Service is Key
If you don't know already, be advised up front just how important personal service can be when dealing with an insurance company on some problem or other. Essentially, your choice comes down to buying your policy from a company, a salesperson or your own personal consultant. You really can consider an insurance broker to be a consultant, because they are giving you their educated opinions on the different policies and options that they consider right for your particular need(s). A broker can give you that one-on-one attention and it makes the experience of purchasing a policy much more pleasant - in addition to being much less biased in favor of one company or another. You can even meet with several broker-consultants before making adecision.
It is the job of the broker to carry out your instructions in a professional manner and to make any necessary recommendations based solely on your provided information and the policy's particulars (coverage, benefits, exclusions, etc.). When dealing with a broker, all of your personal information will remain confidential and secure and they cannot disclose any information to other agencies or firms unless OK'd by you. Insurance brokers can bring peace of mind to an insurance purchasing situation, whether you're looking to cover your home, car, auto or life. A broker can make the glut of information much easier to deal with. A broker will help you narrow your search down to the last detail, which will then allow you to make a final - and well informed - decision.
Licensing and Laws
In many states, a broker must be licensed and has to pass an exam. Brokers typically attend seminars and conferences in order to keep up to date on current legislation and insurance trends. You do want to look for a broker who has solid experience and good credibility. Brokers should have no problem showing you their state-issued credentials and proof of their relationships with various insurance firms, and if they do have a problem with it, then you should not be considering them to handle your insurance needs.
Insurance brokers can specialize in selling all types of policies, or "lines." The different types of lines include home, auto, life, business, special varieties of insurance such as policies for pets and certain financial instruments. For brokers that wish to deal with insurance as an investment - whole life policies, annuities, etc. - they may be required to get a special license as well as training. These requirements vary from state to state, and there are U.S. government agencies, such as the Securities and Exchange Commission, that may also get involved in some insurance matters in certain instances.
How to find an Insurance Broker
Begin your search for a broker with a little investigation into online sources, the phone book and referrals from friends and coworkers. You will want to find a broker who will work for you and not against your wishes, one that you can trust and feel comfortable with. Discuss with the broker all of your insurance issues and needs for the policy or policies that you are seeking. You want to work with a broker that is professional in all aspects of the job and knows what each insurance "underwriter" is going to be able to offer in terms of coverage. Brokers are also aware of which insurance companies are best suited for your specific needs.
An insurance broker can be a great way for you to deal with the frustration of looking for insurance by yourself, especially if you are new to the subject. They will save you time and money because they will be able to locate the right policy for you based on your specifications from among a wide choice of firms, not a single one that gives them a paycheck to sell you something. The broker works for you, not the insurance company, and won't make any money unless they take good care of their clients. You should now be well equipped to find a broker and get that coverage you need.
How is an Insurance Agent Different from a Broker?
There are three common options for buying insurance you can purchase through a broker, buy directly from an insurance company or purchase through an agent. The insurance broker can offer a variety of coverage choices and a range of prices, simply due to the fact that they deal with many different insurance companies.
A typical insurance agent works for one company in particular and makes recommendations to clients based on that one company's available policies. A broker is similar to an agent in that they both work to structure and sell policies, help settle claims in a timely manner and often work on a commission basis. However, while an agent is an insurance company representative, a broker is an independent businessperson, and can shop multiple insurance companies.
When you are making the decision about whether or not to purchase insurance there are many important things to consider. You must first know your specific needs for the policy and, in turn, what it offers in terms of protection. An insurance broker can help you sift through all of the rubble and help you to make the right choice.
Service is Key
If you don't know already, be advised up front just how important personal service can be when dealing with an insurance company on some problem or other. Essentially, your choice comes down to buying your policy from a company, a salesperson or your own personal consultant. You really can consider an insurance broker to be a consultant, because they are giving you their educated opinions on the different policies and options that they consider right for your particular need(s). A broker can give you that one-on-one attention and it makes the experience of purchasing a policy much more pleasant - in addition to being much less biased in favor of one company or another. You can even meet with several broker-consultants before making adecision.
It is the job of the broker to carry out your instructions in a professional manner and to make any necessary recommendations based solely on your provided information and the policy's particulars (coverage, benefits, exclusions, etc.). When dealing with a broker, all of your personal information will remain confidential and secure and they cannot disclose any information to other agencies or firms unless OK'd by you. Insurance brokers can bring peace of mind to an insurance purchasing situation, whether you're looking to cover your home, car, auto or life. A broker can make the glut of information much easier to deal with. A broker will help you narrow your search down to the last detail, which will then allow you to make a final - and well informed - decision.
Licensing and Laws
In many states, a broker must be licensed and has to pass an exam. Brokers typically attend seminars and conferences in order to keep up to date on current legislation and insurance trends. You do want to look for a broker who has solid experience and good credibility. Brokers should have no problem showing you their state-issued credentials and proof of their relationships with various insurance firms, and if they do have a problem with it, then you should not be considering them to handle your insurance needs.
Insurance brokers can specialize in selling all types of policies, or "lines." The different types of lines include home, auto, life, business, special varieties of insurance such as policies for pets and certain financial instruments. For brokers that wish to deal with insurance as an investment - whole life policies, annuities, etc. - they may be required to get a special license as well as training. These requirements vary from state to state, and there are U.S. government agencies, such as the Securities and Exchange Commission, that may also get involved in some insurance matters in certain instances.
How to find an Insurance Broker
Begin your search for a broker with a little investigation into online sources, the phone book and referrals from friends and coworkers. You will want to find a broker who will work for you and not against your wishes, one that you can trust and feel comfortable with. Discuss with the broker all of your insurance issues and needs for the policy or policies that you are seeking. You want to work with a broker that is professional in all aspects of the job and knows what each insurance "underwriter" is going to be able to offer in terms of coverage. Brokers are also aware of which insurance companies are best suited for your specific needs.
An insurance broker can be a great way for you to deal with the frustration of looking for insurance by yourself, especially if you are new to the subject. They will save you time and money because they will be able to locate the right policy for you based on your specifications from among a wide choice of firms, not a single one that gives them a paycheck to sell you something. The broker works for you, not the insurance company, and won't make any money unless they take good care of their clients. You should now be well equipped to find a broker and get that coverage you need.
