Insurance Brokers vs. Insurance Companies and Agents

Insurance is one of the most important purchases that you have, or will have to make in your lifetime. Insurance isn’t something that you should just consider; it is a necessary purchase. When it comes to choosing an insurance provider, most people look for a highly publicized, well-advertised agency. While you might assume that an insurance company is a better option due to the sheer number of clients they have, this isn’t always the case.

Here are a few examples as to why:

Cost Reductions

Many people who purchase insurance through a company believe that in doing so, they will receive lower rates and receive cost reductions for maintaining levels of “good behaviour”. This is extremely common for all types of vehicle insurance, but the unfortunate truth is that most customers have to pester their companies to lower their rates despite being promised these savings. On the other hand, an insurance broker has a more personal relationship with their clients, and can offer better service, giving them additional time and more thorough information about insurance in general.

Your Policy

Because a client generally has a closer relationship with an insurance broker, the broker is able to provide a policy that better suits their specific needs. A large insurance company is likely to offer an insurance policy with a cost so low that their clients won’t even hesitate. The problem with this is that you only get what you pay for, and when you aren’t paying much, you aren’t going to be receiving much in return. If something does happen to come up, chances are this extremely basic insurance plan will leave you in an unexpected predicament, where it may be difficult to recover your losses.

When a large company offers a client a low rate, they often believe that the insurance company is looking out for their best interests. Sure, insurance agents are typically more experienced on the administrative side of insurance, but an insurance broker is required to have a license, which usually means the broker has more education and more experience within the industry. A broker is going to ensure that the policy you are paying for is actually going to meet your unique needs, rather than give you a contract with a bunch of holes in your coverage. Furthermore, an agent will only offer services dictated by the company’s policies, so you have more flexibility and variety to choose from with an insurance broker.

Accessibility

If you ever have to file a claim, you may find that speaking to a representative at a national office just isn’t cutting it. With an insurance broker, you know that they are situated in your geographic region, and that they have the time to sit down with you to resolve your problems in a timely fashion.

Objective Advice

The success of an insurance broker depends on their clients’ satisfaction with their coverage, service and price. It is in their best interest to know and understand the needs of their clients and to negotiate for competitive premiums on your behalf, even if it means having to approach several different insurance providers. Additionally, because your insurance broker doesn’t work for a specific insurance company, they are able to offer you purely objective, unbiased advice when it comes to making a claim.

While a low rate may be an advantage towards purchasing insurance through an insurance company, chances are that you might not ever speak to the same representative twice, and you may never know exactly what your policy provides. An insurance broker is there to represent you, ensuring your back is always covered.

At Will Marshall Insurance in Barrie, we want to do everything in our power to make sure you are getting the coverage you need, at a price you are comfortable paying. If you have any questions about the options that are available to you, do not hesitate to contact us online or call us at 705-726-2551.

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