When you purchase insurance, you have the option of buying your coverage through an insurance broker or through an insurance agent. Both are provincially licenced professionals. Both are required to maintain Continuing Education requirements to stay knowledgeable about the products they sell.
How do agents and brokers differ?
An insurance agent is a person who sells insurance policies for one specific company. They are usually knowledgeable about that particular company’s insurance offerings and can answer all your questions about them. They may be able to bundle your insurance needs together in a package, such as Car insurance + Home Insurance. Since the policies available are limited to only one insurance company, an agent can put together a quote very quickly.
On the other hand, an insurance broker is an independent professional who represents the interests of their clients. They work with multiple insurance companies not just one company. They can provide impartial advice about available products and act in the buyers’ best interest. They can do the “shopping around” legwork for you. Because a broker will review the products from many different carriers to find you the best value and best coverage, the research can add some extra time to getting a quote.
When deciding who you want to work with, ask these questions:
• How long have they worked in the insurance industry?
• Will you deal with the broker or agent directly or a team-member?
• How can you contact the broker if required? Phone? Email? In Person?
• How many insurance providers do they work with?