Insurance is a part of life with citizens in Canada, at the very least, usually requiring house, car, and extended health coverage. There are two basic ways to purchase different types of insurance. One is to buy directly from the insurance company and the other is seeking the services of an insurance broker who can establish what you need and look at different companies to provide coverage.
While buying directly from a chosen company will most likely provide you with the coverage you seek, there are many reasons why working with an insurance broker may be the right fit for you.
1. Access to many companies
Buying directly from an insurance company gives you no flexibility regarding prices and products. Their agents are held hostage to one company’s one-size-fits-all coverage with little ability to change a policy if required. On the other hand, brokers work for a select group of insurance companies and can look at all coverage options to find a policy that will best suit your needs.
Although brokers have access to multiple different companies, they have no vested interest in promoting one over the other. Their main goal is to find you policies that will offer you the best coverage at the best price and they are very effective in doing this.
2. Keeps costs down
Insurance can get very expensive for the average citizen therefore it is beneficial to do everything possible to keep costs down. This is where seeking the services of an insurance broker is helpful. Brokers have access to multiple insurance companies that can give quotes for coverage based on information that you provide to the broker. This allows you to choose the policy that is both cost-effective and meets your needs.
While insurance agents that work directly for one company often tack on additional fees for their services, insurance brokers work independently and are paid a commission by the insurance company for selling their products.
As a result, you are not paying the broker at all for services and this will keep costs down significantly. Insurance companies sometimes provide lower rates to brokers because they are trained and trust them to adequately represent their products. Brokers are able to offer these lower premiums to potential clients which is another way that allows a person to save on insurance coverage.
3. You get what you need
As mentioned, insurance agents can only offer products specified by the company, often resulting in customers being over-insured and consequently overcharged or under-insured by policies that will not cover them when needed.
An insurance broker works for you and has your best interests in mind. They can take all of your information, look at your personal needs, and recommend the policy best suited to your situation. Brokers are not required to be loyal to any specific company they do business with therefore they will not pressure you into any products you do not need and will ensure you have what you do need.
No one wants to think about ever having to file an insurance claim, but incidents do happen. When dealing with insurance companies directly this can be an arduous and frustrating process. Most insurance companies will not be local to you and they are usually big corporations that may not have time for you even in the case of an emergency.
An insurance broker is someone you can turn to when an incident occurs and claims are filed through them. The broker can take the information regarding the incident, contact the insurance company, and will ensure you receive the timely and effective service that you need and deserve.