Just what does an insurance brokerage do?
If you’re asking this question, you’re probably looking to, or are in the process of, purchasing insurance. Perhaps you want to insure your car, house, or business. Or you want to buy health and life insurance policies.
Then, maybe a friend recommended that you should work with a brokerage instead of dealing with an insurance provider. Or you were searching online and you landed on the site of an insurance brokerage.
In this article, we’re telling you everything you need to know about insurance brokerages.
What’s an Insurance Brokerage?
When you’re looking to purchase insurance, ordinarily you would expect to get in touch with an insurance company and get the policy you want.
However, this is not always the case, thanks to insurance brokerages.
Today, chances are high you will buy an insurance policy through a brokerage instead of buying directly from an insurance company. Insurance brokerages are essentially brokers or middlemen. They link you up with insurance companies.
In most states, insurance brokerages must meet a certain set of requirements before opening up for business. As such, when you work with an insurance brokerage you can rest assured that you’re dealing with a legit business. This is important because, in most industries, brokers have a bad reputation for swindling unsuspecting consumers.
Why Buy Insurance Through a Brokerage?
You’re probably wondering why anyone would buy insurance through a brokerage instead of just dealing with an insurance company. After all, cutting out the middleman should save you money, right?
Well, that might be the cause when you deal with most brokers, but in the insurance industry, you have every reason to work with an insurance brokerage.
You see, there are about 6,000 insurance companies in the United States, each offering various insurance policies and packages. For example, the health insurance policy you will find at company A isn’t the same as the one offered by company B, and neither are these similar to company C’s health policy. Terms and conditions of coverage can vary significantly.
So, when you’re in the market for an insurance policy, it can be difficult to find on that suits your needs. Comparing policies from multiple companies is a laborious task.
Insurance brokerages assess your needs and help you choose a policy that suits those needs. They aren’t affiliated with any insurance company, which means they don’t promote products from certain companies. They do, however, earn a commission when they direct a client to purchase a policy from a certain insurer.
Is an Insurance Brokerage also an Insurance Agency?
In a nutshell, no.
While both insurance brokerages and insurance agencies are intermediaries between insurance buyers and insurance companies, agencies represent one or more insurance companies. Brokerages represent the buyers.
So, when you work with an agency like Keller Insurance Agency, you know what you’ll be getting.
Insurance Brokerages Will Help You Get the Best Insurance
Insurance brokerages play a crucial role in the insurance industry. They help buyers get the best insurance policies. If you’re a buyer, you have every reason to work with a brokerage instead of buying directly from an insurance company.
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Interesting related article: “What is a Broker?“