When you’re looking for insurance, you can go about getting it in a few different ways. One is to go to the insurance company directly. But if you’d rather have a licensed professional help you find the best coverage for your specific needs, you could always turn to an insurance agent or insurance broker instead.
Insurance agents and brokers may seem like the same thing, but they are distinct. The main difference is in who they represent—insurance agents represent one or more insurance companies while insurance brokers represent consumers. Let’s delve further into the details of what that means.
Insurance Agents
Insurance agents may work for one or more insurance companies, and they earn a commission when they sell their policies. They can either work full-time at an insurance company or as an independent contractor. In addition, insurance agents can complete an insurance transaction from start to finish.
There are two types of insurance agents. Captive agents represent one specific insurance company, while independent insurance agents can represent multiple.
Insurance Brokers
Insurance brokers do not represent any insurance company. Instead, they search for policies from many carriers, and they use their findings and expertise to help consumers identify policies that fit their needs best at a price they can afford. They earn money from broker fees, and they hand over the account to the insurance carrier to complete the insurance transaction since insurance brokers do not represent the insurance carrier.
Both insurance agents and insurance brokers can help people find the insurance they need, so it’s up to you who you would like to work with.
