Insurance Agent vs. Insurance Broker: What’s the Difference?

What’s the difference between an insurance agent and an insurance broker? Since we don’t buy insurance regularly most people don’t really know what the difference is or why it should matter to them.

Insurance Agents Represent One Company

This is the key difference: an insurance agent works directly for one insurer. So they are definitely knowledgeable about the different types of insurance products offered by that one company. It is the same situation for most banks, grocery stores and other retailers that are now offering insurance products, which are usually backed by one insurance company. Another term you may have heard is a ‘direct ‘writer’ who also offers the products of just one insurer.

Insurance Brokers Represent Many Insurance Companies

An insurance brokerage is an independent company that is authorized to represent the products of a number of different insurance companies. As a result, a broker is very familiar with the different options available from multiple insurers at various premiums or rates. A successful brokerage is often approached by insurance companies who ask them to represent their products to their clients so be sure to look for a broker who offers insurance from many different companies.

Your Interests Come First

Since a broker is not bound to one insurer, they can provide impartial advice and find the right products at the best rates for your needs, not being restricted by the products of only one insurance company. If you have had any difficulties with insurance, have some special circumstances to consider or simply want to find the lowest rate, an insurance broker can find you the best options and be your advocate with various insurance companies.

Comparison Shopping Done for You

As an independently and family-owned brokerage, our team of insurance experts at Mitchell & Whale Insurance Brokers are proud to represent over 40 different insurance companies. For personal service and great rates, contact us at 1-800-731-2228 or info@mitchellwhale.com. We’d be happy to answer your questions and do the insurance shopping for you.

Want to add to this story? Let us know in comments below! Mitchell & Whale is a fast-growing insurance brokerage in Ontario, striving to make insurance _not suck_ one customer at a time. Give us a call today to discuss any of your insurance needs at 1.800.731.2228.

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