If you’re shopping for insurance for the first time, you might be wondering who the best provider is; broker, or agent? Here, we’re clarifying the differences between an insurance broker vs. agent, so that you can make the best choice for your insurance needs.
Insurance broker vs. agent: Which one should you choose?
We’re here to help you decide. 🤓
As insurance brokers, we’re obviously partial to our services.
Nonetheless, we’re all about being well-informed when it comes to your insurance coverage options.
In this post, we’re explaining the pros and cons of working with an insurance broker vs. agent.
That way, you can choose the provider that’s right for you.
Want to cut to the chase and get a quote asap?
We can help with that too.
At KBD, we offer home, car and business insurance to clients in Quebec and Ontario.
Jump ahead to get to to good stuff:
- What is an insurance broker?
- What is an insurance agent?
- Insurance broker vs agent: Which is better?
- How to get insurance through a broker
What is an insurance broker?
So, what is a broker?
To keep it simple, an insurance broker acts as an intermediary between clients seeking insurance coverage and insurance companies.
You can think of an insurance broker as your personal insurance advisor.
For example, as brokers, at KBD we offer home, car and business insurance to clients in Quebec and Ontario.
We assist our clients with things like:
- Advising on the right coverages
- Comparing rates and coverage from multiple insurance companies
- Assisting with the claims process
- Proving a personalized service
Basically, we work on your behalf to understand your unique requirements, assess the risks you face, and recommend appropriate coverage options at the best rates.
It’s our job to save you both time and money. 💸
So, what are the advantages of working with an insurance broker?
We’ll get into that below.
First, we’ll cover what an insurance agent is. 👇
What is an insurance agent?
Unlike an insurance broker who works with multiple companies, an insurance agent represents and works for only one specific insurance company.
They’re a direct link between the insurance company and the client seeking insurance coverage.
Insurance agents are very knowledgeable about the products and services offered by their company as it’s the only one they work with.
They’re also responsible for selling insurance policies on behalf of the company they represent.
Just like a broker, an insurance agent will assess your needs and recommend policies that align with your requirements.
However, one caveat is that they’re limited to the products that their specific insurance company offers.
If you’d like the ability to shop around with multiple companies for the best prices and coverage options, a broker may be a better option for you.
Now that you understand the differences between an insurance broker and insurance agent, let’s get into the pros and cons of each. ⬇️
Insurance broker vs agent: Which is better?
Ah, the question of the day: Is it better to work with an insurance broker vs. an agent?
First, we’ll cover why you should choose a broker for your insurance needs.
So, what are the benefits of working with an insurance broker?
The benefits of working with an insurance broker like KBD:
- Access to multiple insurance companies: Brokers like KBD have access to numerous insurance companies and their products. This means they can compare policies and premiums from different insurers, ensuring you have a comprehensive selection of options to choose from at the best rates.
- They save you time & money: Leave the shopping to us! Rather than scouring the market to compare rates and coverage by yourself, we’ll do that for you in a quick phone call.
- Unbiased advice: Insurance brokers are not tied to any specific insurance company. Thanks to that, we can shop around the market on your behalf to find the most competitive rates and comprehensive coverage options.
- Personalized service: Insurance brokers will assess your unique risks and recommend policies that provide adequate protection for you. At KBD, if you’re a commercial insurance client, you will be assigned to one broker who will deal with your file personally. That way, you get to speak with the same person each time.
- Claims support: As brokers, we can assist you throughout the claims process. We act as your advocate, and help you to understand the policy terms, document the loss, and negotiate with the insurer to get you the maximum benefit.
- Ongoing support: Brokers review your insurance needs periodically and make recommendations based on any changes in your circumstances. We can help you update your coverage, add or remove policies, and answer any questions or concerns you may have about your insurance. We can also help you to shop around at renewal times to ensure that you get the best rate.
Have we sold you on insurance brokers yet? 😉
Just kidding (sort of).
As brokers, we admit we’re partial to our services.
That said, we did promise to give you a full understanding of the benefits of working with an insurance broker vs. agent.
So, to give you a balanced view, here’s what you need to know about working with an insurance agent. 👇
The benefits of using an insurance agent:
In some instances, working with an insurance agent could be the right choice for you.
Here are a few of the advantages of working with an insurance agent that represents just one insurance company:
- Access to a specific company: As we covered, insurance agents represent one particular company. So if you want to be insured by a specific company that follows the agent model, going this route is a no-brainer.
- In-depth knowledge of specific insurance products: Insurance agents have extensive knowledge of the products offered by their company. This allows them to provide detailed information and explanations about coverage options.
- Local presence and accessibility: Insurance agents often have physical office locations within the community, allowing clients to have face-to-face interactions if they need or want that support.
- Assist with policy updates: If you need to make adjustments to your coverage, such as adding or removing policies, changing beneficiaries, or updating personal information, an insurance agent can guide you through the process.
- Provide claims support: Agents can help you understand the claim requirements, submit necessary documentation, and act as your liaison with the company.
If you want to work with an insurance agent, you can do so by simply giving your local branch a call.
Depending on where you’re based, there will often be multiple insurance agents representing a company in your city.
How to get insurance through a broker
You’re now equipped with everything you need to know to decide to work with an insurance broker vs. agent.
And if you’ve decided you’d like to work with an insurance broker, just give us a call. 😉
At KBD, we offer home, car, and business insurance to clients based in Quebec and Ontario.
But if you’re based elsewhere, the best way to get insured is to shop around to find the best insurance brokers in your area.
You can do this through a quick Google Search, or by asking friends and family.
You can also visit our blog, where we’ve ranked some of the best insurance brokers and companies in Canada.
That way, you can see how each one stacks up in terms of customer satisfaction, and you can choose the one that works best for you.
There you have it, folks.
You now know the benefits of working with an insurance agent vs. broker.
In essence, if you’re looking for a more personalized service, with the flexibility to work with multiple insurance companies, a broker is the way to go.
On the other hand, if you know exactly which insurance company you want to go through, working with an agent from that company might be the right choice.
As always, insurance is a personalized service – so the right provider for you really depends on your personal circumstances.