Is there a Difference Between an Insurance Broker and Insurance Agent?

Is there a Difference Between an Insurance Broker and Insurance Agent?

If you are in the process of shopping for insurance, you may be wondering what the difference is between an insurance broker and an insurance agent. When you are in the market for insurance, knowing who to turn to for trusted advice is essential. Keep reading below to learn more about brokers and agents so that you can choose who will best suit your insurance needs.

Insurance Agents

Insurance agents are required to be licensed by a separate provincial body and only represent one insurance company – the one they work for. They are only  knowledgeable about the products and policies that their company offers and can answer questions you have about the nuances of their policies only. They do not have any knowledge of the policies of other insurance companies.

Because they work for a single company, an insurance agent does not have as wide of a range of products to work with, which can mean limited price points or coverage options.

Insurance Brokers

An independent business person that partners with multiple companies to sell insurance is an insurance broker. This is good news if you are shopping for insurance because a broker has access to a wide range of products, policies and price points. Brokers will also help you find what discounts you may qualify for which could lower your premiums and will shop around to find you the lowest possible rate.

Brokers have a wealth of experience dealing with the customer service departments of the insurance companies they represent. If your broker has given an insurance company their personal stamp of approval, you can have peace of mind knowing that you will be in good hands should you ever be faced with a claim.

Becoming a broker requires specific education and training along with passing licensing exams and registering with an official provincial body. Brokers are also required to register with the governing body which overseas brokers in each province.

Who Should I Choose?

Simply put, the main difference between an agent and a broker is that an agent represents a single company whereas a broker has access to many. Whether you would prefer to speak with an agent or a broker is entirely up to you and there is no limit as to how many quotes you can receive when you are shopping for insurance.

To find out more about how you can save on your home or auto insurance policy, contact an experienced broker at Bow Valley Insurance for a free, no-obligation quote. We do the shopping for you!