A lot of people think insurance brokers and agents are the same since they both help obtain insurance coverage from insurance companies. However, there is a difference between an insurance broker and an agent.
Insurance agents represent insurance companies, but insurance brokers represent consumers. Insurance agents can complete insurance sales, but insurance brokers cannot complete insurance sales.
Also read: How to Find the Right Insurance Broker for You?
Insurance Brokers
Insurance brokers represent consumers searching for the right insurance policy for them. They can go through the prices, conditions, terms, coverage, and more with the consumers to help them choose an insurance policy that suits their budget and needs.
Insurance brokers work for their clients rather than the insurer. They use their knowledge and experience to assess the unique insurance needs of their clients to help them find the best coverage.
Insurance Agents
Insurance agents sell the products of an insurance company for a commission. They help consumers choose the right insurance coverage. However, they represent the insurer in the transaction.
Captive insurance agents represent only one insurance company. Insurance agents execute insurance transactions from start to finish but only for the one insurance company they work with.
What are the Benefits of an Insurance Broker?
1. Save Money on Premiums
Insurance brokers can save their clients’ money on premiums. How? They get their clients the insurance they need at the best price. They deal with multiple products and services, so they can recommend affordable insurance coverage.
They also offer better quality support since they mostly work for small insurance companies, which represent big insurers.
2. Honest, Reliable Service
Insurance brokers give honest, reliable service to their clients. They do not hide anything from their clients since they offer full disclosure on commission rates. They tell their clients how the rates can affect their insurance premium. Therefore, they can help their clients make informed decisions.
3. Answer Questions
It is difficult to choose the right insurance cover. It is even harder to choose the right insurance company from the various insurance companies. Insurance brokers guide their clients and answer their questions. They ensure their clients understand the terms and rates of the various insurance companies.
Contact Us to Get a Personalised Insurance for You or Your Loved Ones
It is important to use an insurance broker to get the right insurance coverage. However, not all insurance brokers are the same, so you must do your due diligence to find a trustworthy and reliable insurance broker. If you are looking for a Life Insurance broker in Perth, Western Australia, then contact Absolute Insurance to get a personalised insurance plan.
Related Posts: Why Should You Use an Insurance Broker?
