Why Use An Insurance Broker?

January 17, 2013 at 12:56 pm Leave a comment

broker1First, let’s look at who sells insurance.  For example,  ottawabroker.com Insurance is an independent insurance broker.  If you bought from them, would there be any advantages?

When it comes to insurance, you basically have three choices who you can buy from:

  1. Directly from an insurance company; sometimes they are the cheapest but you have to know their limitations.
  2. Through an insurance agent who represents one insurance company only, and is limited to offering that company’s products and services.
  3. Independent insurance broker who has access to a variety of products from numerous insurance companies.

Direct Sellers

Direct sellers are insurance companies that sell their products and services directly to the consumer, such as a bank who sells insurance on-line.  Direct sellers do not use agents nor do they use independent brokers to sell their policies to consumers.  Rather, their own staff will sell insurance products directly to you.

Direct sellers set the price of their policies, they decide who they want to cover (and who they don’t), they write their own policies, and they decide how much they will pay on your claim, if you have one.

Many people think it’s an advantage to deal direct—“cut out the middleman.” Unfortunately, it isn’t that simple.  Let’s see why.

Your Limited Choices

One of the limitations of direct sellers is that they give you very few choices.  They only sell you their products or services.  It’s like going to the paint store to buy paint for your dining room.  The sales staff tells you that you can buy any colour you want, as long as it is a shade of white.  If your insurance needs do not fit the profile of the direct seller’s product line, they will either sell you a generic product that they say is a “close fit,” or suggest you go elsewhere.

However, when it comes to protecting your assets, a “close fit” is usually a poor choice when you have to make a claim.  No two homes or family assets are alike and your best protection is getting the appropriate coverage that is tailored to your unique needs.

In addition, even if you adopt the “cut out the middleman” approach, it doesn’t mean you will always save money.  True, the independent broker gets a commission on the policy he/she sells, but it’s the insurance company who pays that commission—not you.  In fact, in many cases you will pay the same price for insurance when you buy from a direct seller, as you would from a broker; it just means that the direct seller makes a fatter profit from you.  After all, they’re the one’s cutting out the middleman, not you!

Doesn’t it make sense to get  ottawabroker.com Insurance on your side!

Insurance Agents

Insurance agents are authorized to sell only the products of the companies they represent.  For example, if you became an insurance agent for “BigTime Insurance,” you would have to agree to only sell insurance products and services from “BigTime Insurance; much like buying a McDonald’s franchise—you can only sell McDonald hamburgers.

So, customers who buy insurance from agents are faced with many of the same limitations as with direct sellers.

So, what choice is left?

Independent Brokers

Based on the information above, you probably already see the main advantages of using a broker. Independent brokers put your interests first, before those of the insurance company; they  work for you, not for the insurance companies.

In addition, an independent broker, like ottawabroker.com Insurance, represents a number of different companies and their job is to connect you with the right one for your needs.  It doesn’t really matter to them which company you buy from (since the commissions are pretty much the same); what they really want is for you to be satisfied enough to keep dealing with them year after year.  If your needs change, and another insurance company offers insurance that would be more appropriate for you, a broker is happy to make the switch for you.

At ottawabroker.com Insurance, our goal is to give you access to products from many different insurance companies to make sure you get the best deal, that is the best coverage at the best rates.  But a good broker’s work doesn’t end there.

Why Choose ottawabroker.com Insurance

Experience

We are a full-service, independent insurance broker that has looked after the peace of mind of families and businesses all across Ontario since 1994.  Over the years, we have provided every type of insurance, regardless of how specialized or large the asset to be protected; from personal insurance, small business, group, and much more.

Drawing on this depth of experience, along with our licensed and highly knowledgeable insurance agents, ottawabroker.com  Insurance is uniquely positioned to provide all of your insurance needs.

Customer Service

ottawabroker.com  Insurance is family-owned and we attribute our success to our customer-first philosophy, as well as our commitment to continuous improvements in both service and the type of insurance we provide.  Most importantly, we believe that you should make an informed decision about your insurance protection. Therefore, we make sure that you know your options, understand your choices, and are getting exactly the coverage you need.

As an independent broker, we shop your needs to a number of national and international insurance companies so that we can consistently deliver premium coverage at very competitive prices.  For additional details about our work and our company, please see  www.ottawabroker.com

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