Why Choose an Insurance Broker?

Elliott Insurance Services    September 16, 2016

Young couple with Insurance Broker

There has never been a more convenient and easy time to buy insurance as there is today.  There are insurance brokers, agents, direct writers and online only companies.  With so many choices out there, what are the benefits to having an insurance broker in today’s world?

We are obviously a little bias when it comes to this topic, but if we didn’t believe that insurance brokers still held a critical purpose in the industry, we wouldn’t be approaching our 100 years in business milestone.  In order to understand why an insurance broker is important, we must first describe the differences between agents, brokers, and direct writers.

Insurance Agents:

Insurance agents are sponsored by an insurance company and only write insurance policies for the one insurance company that they are sponsored by.  They are qualified individuals who know the ins and outs of the specific insurance company they sell for.

Insurance Brokers:

Insurance brokers represent several different insurance companies and are able to solicit quotes and negotiate the best premiums for your insurance needs.  Insurance brokers need to know the ins and outs of several different insurance companies.  This requires a high degree of skill, continuing education, and professionalism.

Direct Writers:

Direct writers are insurance companies that sell directly to the public.  They usually do this through insurance agents, online, or by telephone.  They only sell their own insurance programs and are streamlined for their own products.

There are benefits to each way of buying insurance, and choosing which way suits your needs may save you a lot of headaches when it comes to insurance.  There is no right or wrong choice in this debate, and you should choose the option that fits your needs and personality.

The insurance broker’s job is to help you decide what the best premium and coverage combination fits your needs.  The cheapest insurance policy is not always the best policy.  It is important to have proper coverage for your biggest purchases.

Your insurance broker is not just there for buying insurance.  This is the main difference between agents, brokers, and the direct writers.  You can get multiple quotes from a variety of direct writers yourself if you are so inclined.  The broker is there to educate you on the coverage you need and the coverage you have.  They are there to explain the complicated terms, forms, and the fine print.   The biggest asset of an insurance broker is the knowledge and experience that you can draw upon with a simple phone call.

The real difference is made when the policy is already in force.  Your insurance broker will check every renewal and make sure your coverages are still as you requested.  They will let you know when new options are available, or if you have holes in your insurance coverage.  If your premium is increasing at an unfair percentage, the broker will then quote your insurance amongst the other insurance companies to make sure you are getting a fair price for your insurance.  These are areas where the expertise of a broker will be your best asset in the insurance world.

One of the scariest parts of insurance is when you have a claim.  No one wants a claim, and no one wants to deal with the stress that comes along with it.  Your insurance broker should shine in these moments.  They have the expertise and experience to both guide and walk you through the entire claim process.  In the claim situation your insurance broker is your advocate.  They know the insurance companies and have more influence with them than your average individual.

One important point to remember is that the insurance broker works for you, not for the insurance company.  When it comes to claims, quotes, or advice, we work with your needs in mind.  We will act as your advocate, ensuring you are treated promptly and fairly.

When it comes to your most highly valued assets, you shouldn’t make decisions that are based off hearsay or old information.  The insurance industry is constantly changing to keep up with modern times.  Insurance brokers are here to help you wade through the complicated insurance policies and make sure you are covering your largest assets correctly.  Call your broker today to have them check your policy, or give us a call and we will make sure you have the coverage you want and need.

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