Why Use an Insurance Broker: The Benefits to an Insurance Intermediary

If you’re new to the world of insurance or are in the process of purchasing your first policy, you might be wondering: what’s an insurance broker? Do I need one? What do they do? In layman’s terms, an insurance broker is someone who can get you quotes from multiple insurers to help you find the best price. In a sense, they operate as an intermediary between you and the insurer. They have experience, skills, and the necessary know-how to find a policy best suited to your personal requirements. They can save you time and money when it comes to buying insurance.

There is a few ways to purchase insurance. You can do so by:

• Going through the insurance carrier directly. This can be done online or by phone.
• Through an insurance agent that works directly for one insurer.
• Through an insurance broker.

In almost all cases, we suggest a broker. Why? Because an insurance broker can make the difference between OK coverage and great protection that fits within your budget. Let’s dig into why you should use an insurance broker.

First of all – how does an insurance broker differ from an insurance agent?

Insurance agents and insurance brokers are not the same things. It’s worth noting the difference because it can save you money in the long run. Where an insurance broker works on commission for you and finds quotes from numerous different companies to find you the best possible coverage, an insurance agent works for the specific insurance company that employed them and will only sell policies from that company. Going with an insurance agent will get you a policy, but it will severely limit your options and could cause you to lose out on a carrier that might be able to give you a better rate.

Both brokers and agents have experience with insurance and know the industry, but the latter won’t have access to more options.

It pays to have an expert find you the best coverage for the best rates.

You can always opt for a simple policy through the insurance company that was easiest to find – that’s no problem. If you’re already a policyholder and your situation hasn’t changed, you may just need a basic renewal. However, it can always be a great thing to have an expert in your corner who can find you the best coverage for the lowest price.

Brokers won’t push you on any purchase, nor will they jump for the cheapest option. They still want you to have great coverage, which doesn’t mean skimping on protection just to save a few more bucks. Brokers are not paid by any one insurance company, unlike agents, and may work on commission. However, even with the fee that a broker charges, you’re likely to spend less overall. It’s a win-win.

How you buy insurance is a personal choice, and it isn’t necessary to work with an insurance broker. However, insurance is a big decision that can make or break how you recover following an unexpected loss and it doesn’t come free. With an insurance broker, you’ll have peace of mind knowing that the policy you purchased was the one right for you, and you’re saving money on it.

Who benefits from using an insurance broker?

You can use an insurance broker for anything insurance-related (i.e, they’re probably not the one to call for relationship advice), but there’s a few specific scenarios where you’ll definitely benefit from enlisting a broker. Here are just a few:

• You need insurance for a business.
• You would like to fully understand the ins and outs of your coverage, including limits and exclusions.
• Act as a landlord for one or more renters.
• Have a high-value estate with numerous assets.
• You are currently driving a company vehicle.
• You own multiple properties.
• You own multiple cars.
• You don’t want to spend the time or effort to shop around with multiple insurance companies.
• You want to work directly with an insurance broker, with whom you can have a personal relationship, to find coverage based on your background and needs.

As you can see, there’s a handful of situations where having an insurance broker is invaluable. Canadians choose to work with insurance brokers because they don’t want to spend the time sifting through all the insurance terminology on their own – and it always helps to have someone who knows what they’re doing show you the ropes!

Brokers stay with you even after you’ve purchased your policy.

Brokers are used for more than just purchasing your policy. They have plenty of experience working with insurance companies, negotiating, and filing claims. They can help to expedite the claims’ process and make getting your settlement easier than ever.

Claims counselling is a benefit that numerous brokers offer. If you are debating whether or not to make an insurance claim, but are considering asking for a second opinion, an insurance broker will be able to review your circumstances and give you advice before you even need to consider calling your insurance company.

Have any questions about your policy? Concerns? Need to modify something? Confer with your insurance broker. With their experience in the industry and relationship with you, they’ll be able to provide you more accurately with an answer based on your personal circumstances.

How to choose an insurance broker.

When you choose an insurance broker to work with, you’ll want to choose someone who has the right expertise, the right credentials, and can handle your situation.

Before you sign onto anything, you might want to figure out the following about your prospect insurance broker:

• Their qualifications
• If they have a fixed fee or operate via commission
• If they’ll reach out before renewal time
• How they can assist you with the claims process
• What records and information they’ll need from you
• What policy term lengths they suggest

Not every insurance broker is the right fit, but there’s one out there for you that works. Excalibur Insurance Group works with some of the best insurance brokers around that can help you personally to get great protection for affordable rates. Learn more about our team, why we’re special, and what we can do for you.