Whether you choose to work with an insurance broker or agency will likely depend on how much assistance you wish to have when navigating the marketplace. Although the two seem similar, there are distinct variations in the way they operate and whose interests they represent; understanding what these are is important if you’re trying to decide who will best help you meet your needs.
Insurance Broker vs. Agency
Insurance agencies act as intermediaries, connecting consumers with a provider; some represent a single company, others, a variety. These organizations work mainly on behalf of the insurance company to find them desirable clients and sell their products. So, when it comes to assisting people looking to buy coverage, their role is largely administrative: obtaining quotes, filing and processing applications, and managing all other required paperwork. While an agency may help you compare your plan options, they won’t typically offer an in-depth evaluation of your needs to ensure you purchase adequate coverage. They are also paid a commission from the insurance company for each policy they sell.
In contrast, insurance brokers represent the consumer. They work with several different providers, often offering more coverage options than agencies. They will also perform a comprehensive assessment of your needs to accurately match you with a policy that’s right for your situation. In addition, they will search for all the discounts you’re eligible for to ensure you’re getting the best deal possible on your premium. Brokers go through more education and training in the industry and are issued a license by the Insurance Regulatory and Development Authority. Because of their expertise and detailed services, brokers usually charge clients an administrative fee.
The more guidance you receive, the greater confidence you’ll have in your informed decision. The professionals at Jeff Hug Insurance work closely with each of their clients in O’Fallon, MO, to determine the type and amount of coverage that best fits their lifestyle and budget. Call (636) 978-1595 to schedule an appointment with an insurance broker, or visit their website to view the vast array of products they have available.