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Thursday, 13 October 2011

The Benefits of Using an Insurance Broker

When buying insurance, you can choose to purchase a policy through an insurance agent representing an insurance company, or you can use an insurance broker. An insurance agent is able to sell you policies through the company he or she represents, while an insurance broker can sell you a policy from any company, but will make a commission from the sale. The question inevitably arises: through whom should you buy insurance? In today's Insurance Experts post, I will show how an insurance broker is the best way to get the coverage you need for the best possible price. 

Brokers are experienced and knowledgable.

On the surface, it may seem like a wise decision to go directly to an insurance agent and cut out the middle man. Why pay someone a commission if you can get the same policy directly through the insurance provider? The answer is that an insurance broker is able to go through all the policies on the market and select an affordable policy with the amount of coverage you require. For an an average individual, without the resources and knowledge of an insurance broker, you could spend weeks or months tracking down the best policy! 

Brokers work for you. 

Quite possibly the most important difference between an insurance agent and an insurance broker, is that a broker is working for you, not the insurance company. Their responsibility is to find the policy that best suits your needs. They have no preference between companies and choose based on your needs, not because they have an allegiance to one particular company. An insurance agent is interested in selling you the company's product. Naturally, they are also concerned with providing you with the coverage you need, but they are much less inclined to steer you away from one of their policies because a cheaper one exists elsewhere. 

Brokers must disclose. 

Brokers are required to disclose how much commission they charge. This means that you are able to see just how much your premiums are being increased by the commission rates. If you don't believe they are fair, you can always find another broker. 

Insurance brokers are experience and looking out for you. Without an insurance broker, you would not have the resources or time to sift through the thousands of plans out there! An insurance broker can take into consideration your particular set of needs and find the policy that works right for you. This kind of service simply cannot be provided by one company. Not only that, your broker will tell you how much your policy costs and what his or her fees were. 

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