Insurance brokers are an important part of finding insurance in the world of insurance. Before going over what an insurance broker can do for you, we need to define what exactly an insurance broker is. According to the Collins English Dictionary, an insurance broker is simply an individual that helps advise clients on choosing the right insurance based off their current needs. In other words, an insurance broker helps their customers find the right insurance plan to cover an individual based off their level of risk and financial situation. The insurance broker then gets paid for their services with either a commission or a fee. (1)
That’s all sounds easy right? You would be wrong. There’s a whole lot of tasks that an insurance broker can do that a regular person just can’t do. Let’s go over what an insurance broker can do that you can’t.
First off, an insurance broker has connections to many insurance companies that you may not have. The insurance broker can use these knowledge and connections to insurance products to find you the best insurance plan possible. These individuals get their knowledge and connections from working many years in the insurance industry and getting experience finding people insurance plans. If you tried to find an insurance plan on your own, it may be harder given the potential lack of connections to a variety of insurance companies. It would be a safer bet to stick with an insurance broker. (2)
Secondly, an insurance broker can save you lots of time finding insurance. Customers would only need to fill out the insurance broker’s application, and the insurance broker would take care of all the plan-searching for you. Insurance brokers can save you time by utilizing their network of insurance connections to help you find the right insurance plan for you. This way, customers won’t need fill out a never-ending amount of insurance applications for each insurer and insurance company. (2)
Third, insurance brokers can save their customers large sums of money. This ability of theirs is related to their connections to insurance companies. How it works is that insurance companies understand that insurance brokers have enough experience and knowledge about insurance to lead their customers to the right insurance policies. The right insurance policies for consumers have the right level of coverage for the consumer. As a result, insurance companies offer insurance brokers lower rates for their clients. This perk combined with the insurance broker’s method of shopping for the best price from a multitude of carriers helps their clients save money. (3)
This article was written by Ian, an intern at Irish Mortgage Brokers and Yes.ie from the USA.
References:
[1] https://www.collinsdictionary.com/us/dictionary/english/insurance-broker#:~:text=An%20insurance%20broker%20is%20someone,for%20a%20fee%20or%20commission.&text=Insurance%20brokers%20act%20as%20middlemen,the%20insurers%20that%20underwrite%20policies.
[2] https://www.moneytips.com/pros-and-cons-of-using-an-insurance-broker-or-agent
[3] https://www.bbgbroker.com/what-does-an-insurance-broker-do/