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Insurance Broker vs Agent: The Key Differences

insurance broker vs agent
Carl Pash

Carl Pash

Carl Pash is the President of Alliance Insurance of the Rockies and has over 25 years of experience working with insurance claims. Carl has a mission to match customers with the best insurance products through personally getting to know his customers, allowing him to protect their financial security.

As an insurance broker in Colorado Springs, we understand that the core of improper insurance coverage stems from an abundance of confusing terminology and a severe lack of clarity within the insurance industry.

To combat this issue, we strive to provide insurance buyers with the information they need to make the appropriate decisions for their specific needs, both short and long-term. A significant point of confusion deals with the difference between an insurance agent and an insurance broker.

At Alliance Insurance of the Rockies, we are always looking out for the well-being of the insurance buyer, which is why we want to ensure both the key and nuanced differences between insurance agents and brokers are clear.

What Is An Insurance Broker?

An insurance broker is licensed to sell insurance plans to you on your behalf from the market. A broker acts as an intermediary between you and the insurance company. The overall objective is to connect you, the insurance buyer, with a suitable plan for your specific needs. Legally, an insurance broker has a fiduciary duty to select insurance plans that protect your financial interests thoughtfully.

Although brokers often receive a commission from an insurance company when you accept and select their quote, the broker still must present the plans that will be the most beneficial to your pocket rather than theirs. 

It is integral to connect with an insurance broker who has a great deal of experience in the industry since there are plenty of insurance plans. In addition, an experienced insurance broker will understand your specific needs in terms of coverage and financial preferences.

As a result, they can effectively pull the proper plans for you. In addition, insurance brokers who have spent time in your area may have comparable knowledge of plans to agents due to time spent exploring the options.

What Is An Insurance Agent?

Insurance agents are licensed to sell you insurance on behalf of one or multiple insurance companies. In addition, an insurance agent is contracted under one or numerous insurance companies to pull plans from solely those companies to sell to you.

One of the significant advantages an agent can have is specialty knowledge of the programs and the ability to update you on any changes in coverage quickly. Agents have limited plans available that they may provide, but this allows them to provide more specific, long-term customer service if you purchase one of their plans. 

Agents represent the insurance company’s best interests or companies with which they are under contract. Since there is no fiduciary duty to you as an insurance buyer, there is no guarantee that the insurance plans provided to you by an agent represent the most beneficial coverage and financial options for you and your family. When working with an insurance agent, keep in mind that it is ultimately up to you to ensure the insurance plan meets your coverage needs and financial expectations.

Do I Need An Insurance Broker Or Agent? 

The decision between insurance plans is daunting enough, so connecting with an insurance agent broker or going directly to an insurance company you are confident about can take you over the edge. If you don’t want to waste time drowning in options, fine print, and excessive jargon, connect with an insurance broker. It may be the safest choice.
Insurance brokers will only present you with options that work for you. For example, suppose there is an insurance company or plan already of interest to you. In that case, an insurance agent will likely be able to provide extensive knowledge about the plan and easily keep you up to date on any changes to your policy.

Connect With A Company That Has You Covered | Alliance Insurance Of The Rockies 

What matters most is that the policy meets your needs. The core purpose of insurance is to protect you from the difficulties that life can easily burden you with. Instead of risking limited options through quick self-research about insurance or limiting yourself by choosing from scarce options that one specific company or insurance agent may provide, connect with an experienced insurance broker to save time and optimize peace of mind.
As professional insurance brokers in Colorado, we can pull from vast options in the market, but we understand how to connect the right plans with the right people intentionally. Connect with the team at Alliance insurance so that we may take the time to understand your needs comprehensively. As a result, we can connect you with appropriate plans, save you time, and ultimately provide the best coverage for your needs.

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