Brokers Versus Agents: Who Has Your Best Interests in Mind?
When it comes to auto insurance, all of us drivers need it.
In California, it’s the law that we have it. Most of us will simply call up the guy or gal their family or friend uses and use them. But… is there a better way?
Can you save money on car insurance?
Yes – you can. And it’s actually obvious… you need to shop around.
To get the best deals, need to consider the following:
How much does an average policy cost?
How much coverage do I need?
Do I even need certain types of coverage?
When purchasing an insurance policy we’ve all asked ourselves these questions.
Okay… but what’s this got to do with the difference between a broker and agent?
Most of us don’t realize there is a difference between an Insurance Agent and an Insurance Broker.
An Insurance Agent works for an insurance company.
Insurance Brokers work for their client, i.e., you.
An Insurance Broker is known in the industry as being “independent”. As with an agent, an Insurance Broker has a fiduciary responsibility to provide the best product available for his/her client. Unlike the captive agent, a broker can have relationships with many different companies. Through those relationships, a broker can obtain many quotes and coverage’s to fit the needs and budget of his/her clients.
An Insurance Agent is known in the industry as being “captive”. An agent has a fiduciary responsibility to provide the best product available for his/her client However, he/she is limited to the products offered by the company he/she is captive to. In other words a captive “Insurance Agent” can only provide you with coverage that is offered by the company he/she represents. This can limit coverage and cost options.
Once my policy is in place, do I need to worry about it any longer?
Another common misgiving with insurance is that once you have an active policy in place it is “set it and forget it”. While this may be true during the term of the policy, most of our lives are fluid and situations change. Not only can events in our personal lives change our coverage needs, but events outside of our control can also change our insurance situation.
With this in mind, it is important to review your coverage needs at least once per year. Policy renewal time is a great time to go over your coverage needs with your industry professional in order to protect yourself and your assets against unnecessary risks. Once you are established with an industry professional your review should take very little time, and be completed by just answering a few simple questions.
Do policies from different companies really differ that much?
First Beneficial Insurance Services has found they are better able to meet the coverage needs of their clients by quoting many companies. Also, they are able to offer clients a substantial savings on their premiums very often. You can ensure you’re properly covered by answering a few questions about your particular situation. Thus protecting the assets you’ve worked so hard to obtain.