In the insurance industry in Alberta, there are two primary retailers of insurance productsagents and brokers. To get the best premium rates and coverage terms you can for your hard earned dollar it is crucial that you know the difference between the two.
You may have even found yourself asking, “What is an insurance broker?” Car insurance in Calgary is available from both brokers and single insurance providers. Insurance customers seem to intuitively understand that an insurance agent is the retailer of the particular car insurance company whose name is on the door and business card. If Mrs. Smith is the Calgary agent for “Acme Insurance,” it is a given that she represents that company’s products and interests.
Brokers Work For You
An insurance broker is something else entirely. A broker is someone who independently offers the insurance products of multiple companies. A broker is someone who uses their knowledge and expertise of not only the insurance industry, but of your personal or business circumstances, who then strives to offer you the best coverage for the least amount of money, without regard to who wins your business. As well, brokers employ specialists, and have employees specifically trained to deal with issues like the best rates for your car insurance in Calgary. Or your home, farm, or business insurance! By contrast, the endgame for a “captive agent” is to offer you only what their company has to offer or lose your business. This creates a powerful incentive to sell you a policy that may not be right for you just because no coverage or rate flexibility exists in their “standard” policies.
Brokers Maker Underwriters Compete
As brokers have a wider portfolio of offerings to compare and contrast with you than agents do, brokers offer better policy service than agents can. Agents plug you or your business into their forms and try to make a match with a preexisting policy already on offer.
Brokers do so much more for you. By the very nature of having multiple competing underwriters, brokers have to analyze the assets of their clients or their businesses to secure not only adequate coverage at the best available premium, but they also have keep abreast of changes to your circumstances and the evolving insurance offerings that may better serve your insurance needs.
Let’s return to the hypothetical Acme Insurance, and their agent, Mrs. Smith. Say you own a construction company with a fleet of five company pick up trucks. In the current year, you plan to get new trucks and replace the old ones. With Acme, it’s really on you to update your insurance to ensure the full value of those trucks is properly covered. A Calgary car insurance broker will periodically inquire about changed risks and then strive to tailor your coverage to the new details. Say those trucks are safer per kilometer driven over the old model. What incentive does Acme have to write you even a marginally less expensive policy? She looks to protect their bottom line, not yours.
Insurance brokers are always happy to provide free rate comparisons. Take advantage of existing competition in the market and save!
Godfrey-Morrow Insurance is a brokerage specializing in offering superior customer service and excellent car insurance in Calgary.