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Why Go with an Insurance Broker Instead of an Insurance Agent

Why Go with an Insurance Broker Instead of an Insurance Agent

Insurance is not cheap. You never get notified that your insurance premiums have gone down. They only go one way, and that is up. If you can save money by shopping around, then might as well go for it. A dollar saved is a dollar earned, and in this economy, it doesn’t hurt to have some money stowed away.

If you are like most people, you probably go with one insurance company for all your needs. Perhaps car, home, and even boat insurance. It is most certainly a local insurance agency and you might be friends with the insurance agent that you get all your policies from. In business, they always say you can make money or you can make friends. However, with insurance agents, making friends is making money because the customers feel safe and protected with you being a buddy.

Does this scenario describe how you choose your insurance? If it is similar, then it might be time to look outside the box a bit other than focusing on just insurance agencies that are located in your hometown. In fact, it is very possible that you would be saving some serious money if you decided to go with an insurance broker instead of an insurance agent. You might believe there can’t be that big of difference between the two, but an insurance broker actually can bring more benefits to the table if you choose to go with them.

Insurance Agent

An insurance agent is also called a captive agent. What this means is that they are basically only selling policies for one insurance agency. Their job is being a salesperson. They need to convince you to choose them and they only offer their own company’s policies. They are not overly concerned about the price either. They might talk to you about ways of saving money off of your insurance premiums by purchasing more policies so they can provide you with a little discount. The problem is that, most likely, there are better insurance policies out there for you that cost less and provide you better coverage. By going with an insurance agent, you are only allowed to choose between policies from their company.

Insurance Broker

An insurance broker operates a completely different way than an insurance agent. For instance, an insurance broker does not work for just one company. They instead work for you. If you choose them, they go out and find the best policies for you based on your needs. They talk to many insurance companies and can hand pick policies with good premiums that they feel will work for you. While an insurance agent is just trying to sign you on with the company they work for, an insurance broker is trying to set you up with policies that are priced right and fit your needs.

Insurance brokers can be found easily. If you need the services of an insurance broker in Montreal or anywhere else, they can be located quickly through a search online. They may be working with 70 different insurers that all have policies with car insurance, health insurance, home insurance, and even mortgage insurance. This will give you many more alternative policies that your current insurance company just cannot duplicate.

The insurance broker acts as an intermediary between the insurers and the customers. They will negotiate based on your needs and what you are looking for. It may be hard to break up with your current local insurance agent, but if it is going to save you some serious money, then it should be done.

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