Insurance Brokers vs. Agents: What You Need to Know
There are many different types of insurance you can buy nowadays. You can buy just the basics—like life insurance, auto insurance, and home insurance—but you can also purchase lots of other kinds of insurance, such as critical illness insurance.
If you’re wondering if you have all the insurance coverage you need, or just want to save some money on an existing insurance policy, you should consider working with an insurance broker.
In this post, we’ll answer the following questions about insurance brokers and insurance agents:
- How does an insurance agent work?
- How does an insurance broker work?
- What are the benefits of selecting an insurance broker instead of an insurance agent?
At Archway Insurance, we take pride in being one of Atlantic Canada’s leading insurance brokers and are here to help you with all of your insurance needs.
How does an insurance agent work?
An insurance agent is licensed to sell insurance policies for only one insurance company. So, if you call your bank or an insurance company to get a quote, you’ll be connected to an insurance agent that works for them.
The insurance agent will then be able to answer any questions you have about the policies they sell. They should be able to provide information about any products their company sells, how their claims process works, and any discounts you may be eligible for. An insurance agent can’t tell you anything about what insurance would cost with any other company.
If you need a very specialized type of insurance, you may want to consider working with an insurance agent who can help you set that up. For example, let’s say that you want to set up life insurance that explicitly covers your mortgage if you die. It could be beneficial to work with the bank providing you with the mortgage to set this up.
How does an insurance broker work?
An insurance broker is the opposite of an insurance agent in that they don’t work for one specific insurance company. Instead, they partner with a variety of insurance companies.
Partnering means that they have long-standing relationships with various insurance companies and can provide you with quotes from several companies at once, no matter what type of insurance you’re looking for.
You simply give the details that your insurance broker needs, and then they’ll obtain quotes for you. For example, if you are looking for auto insurance, you’ll need to provide your insurance broker with details about where you live, your driving record, and what kind of car you want insurance for.
The insurance broker will then contact their partners to get you quotes, keeping in mind any discounts you may be eligible for.
What are the benefits of selecting an insurance broker instead of an insurance agent?
There are two significant benefits to selecting an insurance broker over an insurance agent.
- An insurance broker can save you time, effort, and money. When you call an insurance agent, they’ll only be able to help you with the products their company sells. An insurance broker, however, can shop around and get you several quotes that you can compare all at once.
- An insurance broker works for you, not an insurance company. The insurance broker does get paid commission by an insurance company if they steer your business to them, but they are still independent, not an insurance company employee. Their job is to make sure you get the insurance coverage you need, and are there to support you if you ever need to file a claim.
How can Archway Insurance help me as an insurance broker?
If you’re in the market for a new insurance policy or want to see if you can get the coverage you currently have at a lower price, we’re here to help you as insurance brokers at Archway Insurance.
As insurance brokers, we offer you access to a wide variety of insurance products as well as expert advice. If you’re looking for any of the following types of insurance, our insurance brokers are here to help:
- Commercial or business insurance, including commercial general liability and cyber insurance.
- Auto insurance, including insurance for cars, trucks, and SUVs, and for specialized circumstances, such as ride-sharing.
- Property insurance, including coverage for homes, apartments, condos, and rental properties.
- Recreational insurance, including insurance for ATVs, boats, and motorcycles.
- Life insurance, including Key Person insurance, term life insurance, and whole life insurance.
- Health and disability benefits, including critical illness insurance and disability insurance.
By working with an insurance broker, you can get all of your insurance in one place simultaneously. You don’t have to take hours shopping around and keeping track of quotes and coverage details—an insurance broker will do all of that for you!
As insurance brokers, we’re here for you every step of the way, from getting you the best price on coverage to helping you file a claim and get reimbursed.
The More You Know
We’ve explained the following:
- How an insurance agent works.
- How an insurance broker works.
- The benefits of selecting an insurance broker over an insurance agent.
At Archway Insurance, we’ll talk to you about your insurance needs, look at which insurance policies are best for you, and then customize your coverage options to suit the exact requirements of your family or business.
As insurance brokers, our first priority is always you, our client, and we’re happy to answer any questions you may have. Whether you want to know how long we’ve been in business, what kind of experience we have, or what the best kinds of insurance are for you, we’re here to help as your insurance brokers!
Contact Us to Learn More About Working With Insurance Brokers
Whether you need a new insurance policy or are hoping to save money on an existing one, working with an insurance broker can benefit you! To learn more about working with an insurance broker from Archway Insurance, call us at 1-833-536-0529 or contact us online.