Are you wondering why you should work with an insurance brokerage instead of directly with an insurance company? You may even be wondering what the difference between an insurance agent and a broker is.
Although the difference between the two can be subtle, it’s a significant difference. There are a few reasons to work with a brokerage, but it’ll depend on your personal situation. So before deciding to work with a brokerage or an insurance company, you should shop around first.
The Difference Between an Agent and Broker
While both brokers and agents work with insurance companies and buyers, they represent different sides of the process. An insurance agent stands on the side of the insurance companies they work with. On the other hand, insurance brokers stand on the side of the insurance buyer.
Insurance agencies represent an insurance company or multiple companies to the public. Their agents can provide buyers information about the products and options from the insurance companies. As a buyer, you can then pick and choose which ones you like through your agent.
Unlike insurance companies themselves, agents can give you personalized attention. They can also compare plans and policies from multiple companies. Not to mention, you won’t have a pay an hourly or consulting fee. And, you’ll pay the same price whether you end up purchasing a policy through an agent or from the insurance company.
However, what agencies can offer you may be limited since they receive less support from the insurance companies. This point is because they aren’t exclusive to one company.
Insurance brokerages represent you to insurance companies. Their brokers specialize in risk management and insurance, therefore acting as go-betweens for buyers and companies. With their expertise and knowledge, they assess your circumstances and make sure the policy they choose for you fits your needs.
Unlike agencies, brokers act in your best interest. You can trust them to give you unbiased opinions and recommendations since they’re not representing an insurance company. Not to mention, brokers know the rates and options of several different insurance providers. And, they can usually provide better deals since they’re not obligated to sell one insurance carrier’s plans.
However, brokers do tend to be based on commissions, although they’ll tell you upfront what their fees are.
Working with an Insurance Broker
Insurance brokers focus on your interests, comparing insurance products in the market and selecting the best ones for you. If you don’t have time to understand the complexities of insurance, you can trust a broker to assist you. Not to mention, brokers also have the expertise and knowledge about which insurance companies provide the best coverage for certain risks.
Texas Insurance Agency is the insurance brokerage you can trust. We focus on professionalism, honesty, and integrity, and prioritize our clients and value the relationships we build. Holding over 40 years of combined experience, we provide services for Katy and the Greater Houston area. Contact us and see why you should work with an insurance brokerage today.