Why use an insurance broker?

But wait, isn't using an insurance broker just another daunting step? An insurance broker can actually save you time and money. They act as an intermediary between you and your insurer. They get to know you personally and have years of experience in the insurance industry, so you can rely on them to be well-equipped to find an affordable policy.

Here are some of the advantages of using an insurance broker.

Reduces costs.

Purchasing insurance is technically a personal choice, but it can be beneficial to leverage the expertise and experience of an insurance broker. We know that shopping around saves us money, but what about having an insurance broker do it for us? Insurance brokers know exactly where to look, and they may even have access to insurance companies that aren't available on the general market. This means you could get access to more competitive quotes—that is, better coverage at a lower cost.

An insurance broker is also an excellent option if you own multiple vehicles or properties, as they can advise you on how to claim discounts by bundling your policies. With a personal touch, they can help you find coverage tailored to your needs, advise you on the best options, and save you money while ensuring you have adequate protection.

Negotiate on your behalf.

There is a key difference between an insurance agent and an insurance broker: an agent works directly for a specific company, while a broker can operate independently of any insurance provider. Brokers primarily work on commission, meaning they work primarily for you.

You don't have to pay brokers? With some brokers, yes. However, more often than not, brokers are paid a commission by an insurance provider when you purchase a policy from that provider. This commission percentage will vary depending on the policy you purchased, the company, and also the amount of your premium.

This also means that your broker won't favor one provider over another. This is because they would generally receive the same commission for any provider.

Saves you time.

Insurance brokers have the expertise, training, and know-how – they know which companies to approach and are familiar with insurance providers' underwriting standards. An insurance broker will strive to offer you insurance coverage tailored to your specific situation and needs. Furthermore, they won't hesitate to ask for details that could qualify you for additional discounts, resulting in substantial savings.

Clarity of information is a cornerstone of effective communication between a broker and their client. Brokers will help you understand the purpose of each type of coverage, identifying those that meet your needs and those that are unnecessary. Furthermore, brokers tend to simplify insurance jargon to help clients navigate the process smoothly and easily.

It adds a personal touch.

Insurance should never be a one-size-fits-all "product" you simply buy. Instead, your insurance coverage should be tailored to meet your needs, even as those needs change with life's circumstances. Insurance brokers are different from service providers at banks or telecommunications companies; they value you as a client, want to answer your questions, and are real, approachable people.

Because they don't represent a single insurance provider, brokers are trusted advisors—not just salespeople trying to get you the first policy they find. They might even advise against the cheapest policy if they feel it doesn't offer sufficient coverage for your lifestyle or the business you run. Yes, it can be tempting to choose the most affordable policy, but if you were to suffer a loss and it wasn't covered, it would cost you far more than the additional protection would cost in premiums.

End-to-end service.

An insurance broker continues to help you even after you've purchased your policy. In some cases, if you were to buy insurance on your own, you probably wouldn't hear a word from the insurance provider until renewal time. Insurance brokers operate differently. They talk to you and work hard to build and maintain a relationship so you have peace of mind with the coverage you've purchased and ensure commitment through ongoing advice. You can always contact your broker for information, advice, and tips regarding your insurance.

It's also a good idea to stay in touch with your insurance broker and keep them informed of any changes to your coverage, or if you have a recent event to report and need to update your policy on any modifications, additions, or losses. For example, if you recently finished your basement, you may need to discuss this with your broker, as you'll likely need to supplement your existing coverage to ensure you have the right insurance protection!