What’s the Difference Between a Broker and an Agent?
What Insurance Professionals Do and Why That Matters to You
The terms “insurance agents” and “insurance brokers” are often used interchangeably, and they may be thought of as the same job, but there are differences. Building a long-term relationship with the right professional can affect how you develop your insurance plan.
The key difference between an insurance broker and agent is that an insurance broker is an independent sales person who works for the customer. Insurance brokers normally have a relationship with a number of insurance companies and match the customer’s insurance needs with the most appropriate insurance carrier.
An independent insurance agent can be appointed with multiple companies and sell the right product to a client looking for insurance. Agents have at their disposal the ability to quickly check prices and coverages with many different insurance companies. This allows for greater flexibility to meet client needs.
Many independent insurance agents are paid on a commission that is taken from the insurance provider’s quote.
As for an insurance broker, an additional commission is added on top of the insurance provider’s quote and is kept by the brokerage as the rest of the rate is passed on to the provider.
At this point, you’re paying more for an insurance policy from someone with nearly as much flexibility as an independent insurance agent, one who may also lack access to all of the policies available to an agent.
So if you’re looking for a knowledgeable, flexible, yet affordable insurance option for you, you may find that an independent insurance agent may be the best fit to find you optimum coverage for the right price.
The team at Little & Sons Insurance Services in Banning, California can help find you reliable coverage. Contact us today to get started on securing quality insurance policies.