We have all heard the myths and rumours about Insurance Brokers. Today we are setting the record Straight!
“It’s more expensive to use an insurance broker!”
Myth! This is untrue for a couple reasons, the main being how insurance carriers work with brokers.
In order for a broker to sell a certain brand of insurance, they must first be appointed by the insurance company. Some companies may select certain brokers based on their performance though. Once appointed, a broker is paid a commission by the insurance company for each policy sold. If the broker doesn’t sell a policy, they don’t make any money. The insurance company benefits because they do not need to pay their own sales staff and the broker benefits by having more choice for their client. The end result is that the client receives the personalized service of a small agency, while still enjoying the benefits of a big name insurance company. There are no fees on the client’s end!
“Going straight to an insurance company saves time by not dealing with a broker”
Myth! This might be true if the client: 1) Knew exactly what type of policy they needed, 2) Didn’t care about finding the best deal, and 3) Had a lot of spare time to fill out long and boring applications. However; there are not many people out there that fit this description.
When a client goes to a broker, they are asked many questions that are used to fill out a quote application. This information is then sent to multiple insurance companies and each reply with their rate for the requested type of policy. The broker then informs the client of the options available and offers advice on what the best selection may be. All of this is completely free for the client.
If a client wanted to do this for themselves, they would need to fill out a quote request for many different insurance companies and on top of that, understand how to interpret the responses from the insurance carriers and knowing what separates a good carrier from a great one. All of this costs time and possibly money.
“Broker’s keep the client in the dark when communicating with an insurance carrier”
Oh man, is this ever a myth! This myth delves into unethical, and possibly illegal, territory!
It is in the broker’s best interest to keep the client informed and in contact with the insurance carrier when things go wrong. Just like clients, brokers can be liable when legally-required information is skewed, misrepresented, or lost. And in matters dealing with potentially litigious situations, the broker will put the client in direct contact with the insurance carrier’s legal team.
For everyday questions and concerns, an insurance broker will almost always have an informed answer, be able to find an available person ready to give an answer or explanation, often in the form of a phone call, a personal email, or even a meeting in person.
Insurance brokers are here to help you with your insurance, not misinform and provide inflated quotes to make money on the side. I know that there are many insurance companies that offer easy-to-use websites, but honestly, pick up the phone and give Absolute Insurance Brokers a call at 1-877-941-2266 and we’ll help you out!
