Are you the type of person who prefers to do your research when shopping for protection?
If you are, you’ll probably have come across the terms ‘agent’ and ‘broker.’ They’re both licensed professionals who mediate between insurers and policyholders. The main difference is that the former usually acts for more than one company, while the other represents you.
With tens of thousands of insurance brokerages in Canada and more than 400,000 agencies and brokerages in the United States, it’s not an easy task when selecting someone to advise you on your policy needs.
You’d probably consider finding a broker since they work for you. You can do this online. It’s not as easy as it appears because there are coverages for a broad range of risks. What’s more, the names of most firms don’t describe what protection they offer.
You’ll also have to be selective about the party who will manage your interests. These are some criteria to help you.
Trustworthiness
First, you’ll want to ensure that the individual or company you choose to represent you is licensed. Although the industry is regulated, you should also verify that the firm does not represent more than one insurer.
The Better Business Bureau recommends using online resources to help you find trustworthy mediators. You can check out a list that’ll indicate if an organization has had complaints filed against it. This information is invaluable for your decision.
Make a shortlist and do a further check on the track record of those listed. Contact those on the list and ask for evidence of their past performance. Credible establishments won’t hesitate to comply with your request.
Ask around if anyone knows the individual or company you’re considering. Personal references and testimonials are often better than corporate reports.
Experience
If you have a medical problem, you’d consult a specialist. The same reasoning also applies to your insurance needs. You’ll want an advisor that specializes in the area you’re seeking coverage. For example, Brokerlink mentions that if you want to insure your jewelry, the firm should review your current insurance plan and help make sure your precious items are properly covered.
A professional with experience will foresee future claim issues and ensure that your protection is ironclad. You’ll also get the coverage that fits your budget.
Small Is Sometimes Better
Although you’d prefer a reputable and established broker, you might want to contemplate a smaller setup if they meet your criteria.
These firms can provide you with a dedicated service. You’re more likely to have direct contact with your advisor than if you deal with a corporation with strict protocols.
The Final Word
Keeping to your budget may be paramount, but you should prioritize the other criteria such as trust, experience, and personal attention. It’ll save you more money in the long run if you get an airtight policy.