What is an insurance broker company?

What is an insurance broker company?

An insurance broker is a professional who acts as an intermediary between a consumer and an insurance company, helping the former find a policy that best suits their needs. Brokers sell all insurance types, including health insurance, homeowner insurance, accident insurance, life insurance, and annuities.

What is the difference between a broker and an insurance company?

Ever wondered what the Differences are between an Insurance Broker and an Insurance Agent? In a nutshell, the main difference between an insurance broker and an agent is that an agent represents the insurance company, while the broker represents the insurance buyer; an individual or a business.

How do insurance companies work with brokers?

Unlike insurance agents, insurance brokers do not work for an insurance company. They work for their clients, providing advice on the best insurance options for their clients’ needs. Their goal is to support their clients’ interests — not to sell a particular policy on behalf of an insurance company.

Can a broker cancel an insurance policy?

Technically, insurance companies can cancel your policy at any time, and for any reason. But they don’t tend to do it for no reason. Some of the more common reasons for getting your car insurance cancelled are: Non-payment.

Are insurance brokers better?

Using a broker isn’t necessary for everyone. How you buy insurance is a personal choice, but brokers are usually best suited for people who have more complicated insurance needs, like a landlord or small business owner who needs several policies.

Is insurance more expensive through a broker?

When searching for insurance solutions, buyers often assume that because it is the most “direct” approach to purchasing insurance, buying directly from an insurer is likely cheaper and less time-consuming than buying through a broker/agent. A good broker or agent can advise you at no extra cost.

Why do insurance companies use brokers?

It’s simple: insurers often give different (lower) rates to brokers than their direct customers. It’s because business through brokers is a lower risk for insurers. Brokers are professionals and their job is to properly assess their customers’ risks and find suitable cover.

Can insurance brokers charge a fee?

By law, California health insurance agents and brokers are prohibited from charging a fee for their services to consumers. The price of your plan is the same whether you use an agent or not.