The titles of insurance broker and insurance agent sound like they’re similar in terms of their duties and abilities. Both are in the insurance industry, and they can both obtain estimates for policies and recommend the appropriate kind and quantity of coverage for you. However, the intrinsic difference between the two is that an agent is a representative for one or more insurance companies, and a broker is a free agent with broad access to various insurance products.
For example, you can visit a broker and an agent to find the best life insurance companies in NYC and get competitive quotes. An agent can get you information from the insurance companies they represent, while the broker can get quotes from a multitude of life insurance companies. Who you ultimately work with depends on your preferences, needs, and price points. Here’s a look at the difference between agents and brokers and how to make the right choice for you.
Understanding Insurance Brokers vs. Agents
The major difference between insurance agents vs. brokers is how they represent you and themselves. An insurance broker is your representative and goes to multiple insurance companies to get quotes for the type of insurance you’re seeking. In contrast, an insurance agent represents one or more insurance companies and delivers you quotes for the type of insurance that the companies offer. You’re still the client of the insurance agent and broker, but one has a limited scope, while the other has a wide range.
How an Insurance Agent Differs From a Broker
The main duty of an insurance agent is to act as a representative for an insurance company. The agent can work with multiple insurers, but some prefer to represent a single company, while others handle multiple. You can tell how many companies an agent represents by looking at their affiliation and using the word agent in their title.
Working with an agent is beneficial when buying insurance from an insurance company you like. The agent understands the ins and outs of the company and tells you what to expect regarding how the company handles its policies. They know what policies are available, if they can be tailored or combined, and how to process a claim. You get personalized service from the agent for your insurance needs.
When Using a Broker Makes Sense
Brokers don’t align themselves with an insurance company as much as they have access to numerous insurance companies. For example, you’re looking for life insurance in Westchester County and want to get quotes from multiple insurers. You contact an insurance broker and ask them to find quotes from the insurance companies that are likely to have the best offers and policies.
The broker connects with the insurers that they feel will deliver the results you’re looking for, and they will also look at other companies to help you with your comparison process. And just like an agent, the broker will sit with you and discuss your options, who has the best offer, and what to expect from the claims process. In turn, you get the policy that most closely fits your needs and at a price point you’re comfortable with.
Making the Best Choice for Your Insurance Needs
At Margolis & Associates in NYC, we’re an insurance broker who’s ready to help you get the right policy for your specific coverage needs. We help everyone, from individuals to professionals and businesses, find health insurance policies, life insurance, group insurance, long-term care plans, and more. Contact us today to discuss what you’re looking for in an insurance policy, and let us find the best plan that covers all of your contingencies.