Insurance Nuggets – Agent or Broker? Know which one works for you
An insurance broker inherently works for you, the client.
When I first obtained a license to work in the insurance industry in Costa Rica, I became an insurance agent. Before too long, it became apparent that I could best serve the community if I became an insurance broker.
What’s the difference? It’s an important distinction to understand and keep in mind. To clarify, an agent works exclusively for one insurer and is only able to SELL that one company’s product. A broker, however, can OFFER many options for the client to choose from. After the broker reviews all the positive AND NEGATIVE aspects of each insurance plan, the client uses that information to decide what plan is the best choice.
An insurance broker inherently works for you, the client. An agent works to make a sale for the insurer. Contrary to what some believe, the cost to the client is the same either way. In fact, the service is better with a broker. That’s because insurers fight to get the broker’s business.
Bottom line — always use a broker, who will tell you honestly which insurer will give you the best product and will process your claims in a timely fashion.