What is the difference between an insurance broker and an insurance agent?
An agent works for one company and can only offer you the products of that company. An insurance broker has access to the products of several insurance companies and can find the best combination of coverage, price and service. In other words, an insurance broker works for you.
Insuring with a Broker is a big advantage for you, our clients. Why should I insure with a Broker? We are happy to provide the following reasons:
1. Your Broker works for you, NOT the insurance company. We are on your side when you buy or upgrade your insurance or if you have to make a claim. That also means that we can provide you with objective advice regarding your insurance policy.
2. Insurance brokers are business people whose success rests on your satisfaction with coverage, price and service.
3. Insurance can be very complex, with its own language of terms. A knowledgeable Broker can help you at every stage of the process to interpret all the rules and what they mean for you. This can be invaluable as your insurance needs change.
4. We are always here for you. When it comes to insurance, there is no question too basic. If there is anything you do not understand, don’t be afraid to ask. We are here to help.
Insurance Brokers are a part of your neighborhood and your community. They are small business people who are involved in activities in your community. Their children go to the same schools as yours and play on the same sports teams. Brokers shop at the same stores. When you buy your insurance through your local insurance broker, you are investing in your own community.
How can you save money on your Insurance?
Most people have one major question about their insurance—how can I save money? Here are a few things you can ask your broker to check on for you:
- Increase your deductibles. This makes the most difference on property policies and may cause a slight decrease on your auto insurance as well.
- Review your own insurance policy annually. Do not assume your broker is aware of all of the changes going on in your life. Your broker may not be aware if you need to make changes such as different commute distance to work or if you have retired. These changes can make a difference in your premium.
- Your broker can try to combine your home and auto insurance with the same insurance company. This can provide you with an extra discount on each of your policies.
- Some property insurers also give discounts for such things as non-smokers, having a monitored alarm system or being mortgage free.
Your broker is here to answer any questions. Just ask!
What is Insurance and Why do I Need It?
Insurance has many forms and functions but really just one purpose – to provide peace-of-mind. Your broker can tell you more about the basics of insurance and can help you make sure your needs are covered.
FOUR GOOD REASONS TO INSURE:
In some cases insurance is mandatory – to obtain a mortgage for example or to drive a car. Otherwise, the choice is yours, but it’s a wise choice for four main reasons:
1. Reduces worry. With the right type and amount of insurance, you can be protected from the risks to property and person that are inherent in everyday life.
2. Makes it easier to obtain credit. Lenders may be more willing to extend personal or commercial credit if they know that proper insurance is in place.
3. Helps to prevent loss. Brokers and insurers work to help prevent loss with information and advice on road safety, anti-theft, fi re prevention and fraud reduction.
4. Frees up capital. Because insurance protects your assets, you do not have to put money aside in case of future losses. This security applies to individuals and businesses.
THREE MAIN TYPES OF INSURANCE:
In addition to life and health insurance, there are three main types of property and casualty insurance in Canada:
1. Automobile insurance in which vehicles and their equipment are covered in cases of accidents and theft
2. Property insurance in which home and business assets and property are protected from perils such as fire, theft and accidental damage
3. Liability insurance which protects people who are responsible for injuries or damages to third parties
TWO KEY PLAYERS: YOUR INSURER AND YOUR BROKER:
Insurance is sold in a number of ways, some of which make it easier for customers to get objective advice and rapid service. Some insurance companies will sell directly to customers through their sales forces or agencies. Brokers, on the other hand, are not tied to any one company, but are independent advisors whose best interest is long term customer satisfaction. Brokers can comparison shop across insurance companies to find good rates or special insurance products. Your broker can tell you more about the basics of insurance and can help you make sure your needs are covered.
Insurance is a contract in which the insurer agrees to compensate the insured for specific losses and specific perils.