When it comes time to get insurance, most people have to decide whether they want to go directly through a company, or indirectly through an insurance broker. Here are five reasons why you should choose a broker:
While most people believe that cutting out the middleman – in this case the broker – would save money, the opposite is true. In fact, insurance companies provide special rates to brokers in order to help them attract clients. The reason? Brokers help clients choose the right policy, which avoids underinsuring, which avoids unnecessary claims while at the same time providing the insurance company with the ideal amount of income.
Most people believe that buying policies directly through a company will be easy, like picking dinner off of a menu. However, this is false. Insurance companies can be overwhelmed by the amount of applicants, which means they’re more likely to issue a form response to any questions the potential client has. Brokers opt for a more personal touch, answering questions with emails or phone calls as soon as possible. This helps reassure potential clients. Brokers are also more adapt at customizing plans for their clients.
When it comes to starting a new insurance plan, you’ll typically find that both brokers and individual companies respond promptly. After all, they want your business. However, once you’re in the middle of your plan, the results may change. Insurance companies use call centers full of employees who may not have a strong knowledge of the business. Brokers, on the other hand, have a ton of knowledge about insurance policies, and they can make accurate suggestions in a timely manner. When it comes to policy management, brokers are, ironically, superior to the insurance company providing the policy.
As brokers have a specialized knowledge of all the insurance companies that potential clients don’t, they’re more likely to select a policy that covers future clients against everything that can go wrong. When a client looks over their insurance options, they may miss the fine print or misunderstand what a particular term or phrase means. Brokers will be able to explain those things in detail and help the client make the most informed decision possible.
How secure a client feels comes down to how well they’re treated. As insurance companies usually hire call centers to deal with inbound calls, clients are less likely to trust the company they’re dealing with. Brokers provide a more personal touch, which results in clients feeling more secure about any transaction they make. This is particularly true if all of the transactions and policy changes are done through the same broker.
Ultimately, deciding whether to go through an insurance broker or not comes down to your own comfort level. If you know a lot about insurance and are comfortable negotiating, you may be best served to go straight through an insurance company. However, if you want to be absolutely certain that you’re covered, or you don’t have a tremendous amount of insurance knowledge, a broker may be best for you.
The author Federico Samson, specializes in articles. If you would like to learn more about , you may find the business Haas Insurance as a helpful source for references and information.