No one likes buying insurance. It’s an added expense, it takes precious time out of your busy day, it’s complicated, and it’s plumb boring. That being said, it is necessary to protect your assets, whether that is your home, business, condo, vehicle, etc. In order to do that, we must purchase insurance. Many of us already know that the smartest way to finding quotes for our insurance policies is by applying through multiple insurance providers to find the best price possible. Yes, you could do this yourself, but with something as important as insurance you may want to use an insurance broker.
But wait – isn’t using an insurance broker just another arduous, time-consuming step to go through? An insurance broker may actually save you time and money. They operate as an intermediary between you and your insurance provider. They get to know you personally and have years of experience working in the field of insurance, so you can bet on them to be well-equipped to finding an affordable policy.
Here are some of the benefits of using an insurance broker.
Cuts down on cost.
Buying insurance is technically a person choice, but all the same it can help to arm yourself with the knowhow and experience of an insurance broker. We know that shopping around saves us money, but what about having an insurance broker do it for us? Insurance brokers know just where to look, and they may even have access to insurance carriers who may not be available on the general market. This means more competitive quotes, i.e better coverage for less.
An insurance broker is also a great option if you have multiple vehicles or properties, as they can advise you on ways you may claim discounts via bundling your policies. Through a “personal touch” they can help you find coverage based on your needs, giving you advice on what coverage may be of benefit to you and your circumstances or even indicate where coverage may be overkill – allowing you to save money whilst ensuring you aren’t left without protection.
Negotiates on your behalf.
There is a key difference between an insurance agent and an insurance broker: an agent works directly for a specific company, whereas a broker may operate independently of any one insurance provider. Brokers normally work on commission, meaning that they work for you first.
Don’t you have to pay brokers? With some brokers, yes. However, more often the case is that brokers will be paid via commission from an insurance provider when you purchase a policy with that provider. This commission percentage will vary depending on the policy you have purchased, the company it was purchased through, and is generally determined as a percentage of your premium.
This also means that your broker will not push for one provider over another. This is because they generally would receive the same commission for any provider.
Saves you time.
Insurance brokers have the expertise, the training, the knowhow – they know where to go, and they know exactly how to do it. An insurance broker will focus on getting you the insurance protection specific to your circumstances when you need and want it. They also understand every discount that may be available to you, which can help you with some substantial savings.
With many insurance brokers, clarity is essential. They have worked hard to become experts in insurance and likely will not expect you to do the same. Instead, they will help you to understand why you need coverage, what your coverage does, and where you may need coverage. They can simplify overcomplicated insurance jargon and help customers through the experience with ease.
Gives a personal touch.
Insurance should never be a cookie-cutter “product” you purchase. Rather, your insurance coverage should be designed to fit your needs – even as they change through different life circumstances. Insurance brokers are different than service providers from banks or telecom companies; they value you as a customer, want to answer your questions, and are real, tangible people.
Because of the fact that they do not represent a single insurance provider, brokers are trusted advisors – not just salespeople who will try to get you whatever policy they find first. They may even recommend against the lowest cost policy if they believe that it does not supply enough coverage for your lifestyle or the business you run. Yes, it can be tempting to opt for the most affordable policy, but if you were to experience a loss and the loss wasn’t covered, you would be in for a lot more than what the additional protection may cost you in premiums.
Service through and through.
An insurance broker doesn’t stop helping you once your policy has been purchased. In some cases, if you were to purchase insurance by yourself you would likely not hear a word from the insurance provider until it was renewal time. Insurance brokers work differently. They talk with you and work hard to build and maintain a relationship so that you have peace of mind with the coverage you have purchased and assure commitment through continual service and on-going care. You can always reach out to your broker for information, advice, and tips about your insurance.
It’s also not a bad idea to contact your insurance broker whenever there needs to be a change in your coverage, or if you have recently had a major life event and need to update them on the modifications, additions, or losses. For example, if you have recently finished your basement, you may need to talk to your broker as it is likely that you will need to supplement your existing coverage to guarantee you have the right insurance protection!