Insurance
10 Reasons Why You Should Use An Insurance Broker!
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What Is an Insurance Broker?
Insurance brokers are licensed professionals (licensed according to state laws) and are there to help make your insurance shopping easier.
You can think of them as clearinghouses for all the information you need to consider when it comes to finding the best deals on car insurance or a homeowner’s policy.
A broker can compare the benefits and costs of a vast number of potential coverages and help you decide which insurance plan is the best fit for you.
Insurance agents can work for one particular insurer and help customers find the right plan from among the ones offered by that provider. They can also work as independent insurance agents who deal with many different insurers in order to get you the best quote possible.
Insurance Broker Vs Agent
Both are licensed professionals who act as the middle man for the consumer purchasing insurance. BUT, there are some key differences.
An insurance agent is a licensed professional who sells insurance policies directly to the consumer on behalf of one or more insurance companies. They are authorized to bind a policy within the specific insurer’s underwriting system.
An insurance broker represents the clients. They have an obligation to make sure the client is the one being best served, as opposed to the insurance company.
an insurance broker primarily represents the client, while the insurance agent , but independent insurance agents works for insurance brokers who must be licensed and pass an insurance exam in most states. There are insurance brokers for home, auto, health and life insurance.
1.Your Personal Representative
An insurance broker represents insurance buyers, not insurance companies. A broker stays in business by collecting commissions on insurance sales, and the job of a broker is to find affordable rates on policies for drivers and homeowners. They’re experts in insurance coverage, and your friendly broker is skilled in helping you decide what the best coverage options are for your unique circumstances.
Rates are competitive because the insurance broker has access to so many plans.
2. More Choices
Another benefit of going to a broker for insurance is that it’s a low pressure experience.
The broker has no incentive to sell you on one particular plan and is flexible when it comes to helping find coverage at a price you can afford.
You can get a quote for the same coverage from several different insurers and, because it’s a competitive environment, there’s an incentive for insurers to offer cheap rates and reasonable coverage options.
3. Home and Auto Insurance
Homeowners are well-served by using the services of a friendly broker to find the kind of insurance they’re looking for. Your broker can help you balance the need for complete coverage with premiums that you can afford and a reasonable deductible. A broker can also advise you on the return in investment for car insurance. For example, older vehicles may not need as much coverage once their value diminishes.
And sometimes, your broker can save you money on premiums by bundling your home and auto insurance into a policy covered by one insurer.
4. They Find A Good Fit For You
An insurance broker does the work of finding and comparing policies that have the best rates and most comprehensive coverage, all at no cost to you.
Because your broker is an expert when it comes to insurance policies, they will be able to guide you to the best kind of auto insurance or homeowners insurance for your vehicle or dwelling. Your broker is experienced at helping people determine the lowest rates and the amount of insurance coverage they need.
5. Claim Assistance
Besides finding cheap insurance, flexible coverage and a policy geared to your needs, your insurance broker gives you clear direction when it comes time to settle a claim. When your car is involved in a wreck, you’ll contact your car insurance Carrier to report the incident, and they’ll help you in settling the insurance claim. If you’re unhappy with the quote given for a settlement, they’ll explain how you should negotiate with the insurer.
6. Specialization
Many insurance brokers cover a range of needs like home, health, auto and life insurance. Others specialize in one category, and the type of broker you choose is an individual decision. All insurance brokers are experts when it comes to understanding the nuances of various coverage choices. They’re also experienced in finding you a policy that offers stable rates and an insurer that has a proven track record.
A broker has no incentive to sell you a “one-size-fits-all” policy that may not be the best fit for your needs. Instead, your broker will work with you to find the right policy for your budget while ensuring that you have adequate coverage.
7. Saving Time and Hassle
The other option besides using a broker is making a dozen calls to various insurers and writing everything down for comparison. Even then, you’re bound to have questions that require follow-up calls. The advantage of using a broker is that you’ll deal with one person who has all of the answers.
Brokers in each state are well-versed on the insurance regulations for their states and the choices you have when it comes to your insurance plan.
Sitting down with one professional in a low pressure setting is much less stressful than listening to several pitches by different insurers.
8. Expert Advice
Whether you’re insuring a ten-year-old automobile or a million dollar home, your broker has inside information about insurers that will help you pick the right insurance coverage. Sometimes, having a high deductible is a good strategy, but in other situations, it’s not the best way to go.
Is it worth paying higher premiums to expand your coverage? An insurance broker can explain the reasoning behind the choices you have to make and guide you in making the right decision.
9. They Strive for Customer Satisfaction
With an insurance broker, you are the client. A broker doesn’t represent just one company and has no incentive to steer you in a particular direction when it comes to buying a policy. In order to keep you as a customer, your broker wants you to be satisfied with the terms of your insurance policy. That’s why a good broker will make sure that you’re updated about policy changes and new offerings that could save you money or improve your coverage.
10. Always Working for You
If rates go up, your broker will do a comparison of coverage and rates on your behalf. If a better insurance policy is available, you’ll have the option to switch so you’re not stuck with rates that climb every year. Furthermore, insurance companies know that you have choices, which creates a more competitive environment for finding and keeping the best rates.
Your broker will do a yearly review of your plan to make sure you still have the best insurance possible for your budget and coverage needs.
It’s comforting to know that your broker is always looking out for your best interests when it comes to insurance.
Last Updated on by Lauren Mckenzie