Insurance is a necessary purchase – not one that you can take weeks to consider or simply decide not to make. It is a kind of protection against unseen forces –those that can bring a homeowner or company to their knees in an instant. Many people rush out to find the most publicized, well advertised insurance agencies – searching for the lowest rate possible. While this can save some stress on your wallet, it may not give your family or your business the best coverage, or the best service. Insurance Brokers on the other hand may be a better option; especially for those who are first time insurance buyers or for smaller companies.
When most people purchase insurance through a company, they are promised lower rates, better service and consistent payment reductions due to “good behavior”. This is especially true for car insurance and motorcycle insurance. But unfortunately, the reality is, unless a change comes down the pipes that will affect all insurance holders, this will probably not happen. Customers have to be ever-vigilant over their policies and hound agents and companies to lower their rates. Brokers on the other hand, have a more personal relationship with their clients, and because of this their customers often benefit from better service and much better knowledge about the insurance industry in general.
Also stemming from this more intimate relationship is the ability to have a policy that’s tailored especially for you. Insurance brokers are committed to finding the best options for their customers – it’s their purpose. (That’s not to say that brokers aren’t out to make cash –they need to eat too.) In fact, independent brokers usually charge an admin fee on top of the rates. Larger insurance companies can often promise rates so low potential clients get so impressed they sign on the dotted line without a second though… but at what cost? Some of the policies are so basic your home, vehicle or company wouldn’t stand a chance recouping any losses.
Larger companies’ lower rates can also lead people to believe that they have an advocate in their agent. Unfortunately, agents tend to be more experienced with the administrative side of policies and the insurance industry; rather than looking for the best options for their clients, while brokers are required to have a license which generally comes with more education and experience. Brokers will ensure that your home insurance, auto or commercial insurance policies are thorough and correct.
If ever you have to put in a claim through your agency (which most of us have to do at some point) you may find that speaking to the people at the “National Office” or the call centre employees just doesn’t cut it. An insurance broker, on the other hand, lives right in your city, maybe even your community, and has the time to sit down and make sure you are taken care of with compassion and speed.
Yes, there are advantages to a large insurance company or an agent who works for one: you’ll be promised a dirt cheap rate, and you just may be lucky enough to qualify for one. But you’ll never speak to the same person twice, and probably never figure out what your policy covers exactly. An insurance broker is there to be an advocate and to make sure that you’re back is covered, no matter what.
Lilly Gordon is a freelance writer and web publisher. She is currently researching Commercial Insurance and insurance brokers in Alberta.
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