As an insurance broker in Colorado Springs, we understand that the core of improper insurance coverage stems from an abundance of confusing terminology and severe lack of clarity within the insurance industry. In order 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 in the short and long term. A major 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 from the market to you on your behalf. A broker acts as an intermediary between you and the insurance company, while 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 thoughtfully select insurance plans that protect your financial interests. 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 to choose from. An experienced insurance broker will be able to understand your specific needs both in terms of coverage and financial preferences so they can effectively pull the proper plans for you to choose from. 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 that they work for. An insurance agent is contracted under one or multiple insurance companies to pull plans from solely those companies to sell to you. One of the major advantages an agent can have is specialty knowledge of the plans and ability to quickly update you on any changes in coverage. 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 best interests of the insurance company, or companies, they are contracted with. 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 deciding between 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 find yourself wasting time drowning in options, fine print, and excessive jargon while shopping for insurance, connecting with an insurance broker may be the safest choice when it comes to peace of mind that you will only be presented with options that truly work for you. If there is an insurance company or plan that is already of interest to you, then 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. The important thing to note is who will have your back to ensure you are covered without overpaying for insurance.
Connect With A Company That Has You Covered | Alliance Insurance Of The Rockies
What matters most is that your needs are met. 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 experienced insurance brokers in Colorado, not only are we able to pull from vast options in the market, but we understand how to intentionally connect the right plans with the right people. Connect with the team at Alliance insurance so that we may take the time to comprehensively understand your needs as well as your goals so that we can connect you with appropriate plans, save you time, and ultimately provide you with assurance that you are truly covered under each circumstance.