5 Things We Need to Stop Believing About Insurance Brokers
by adminIt’s hard to say why exactly, but insurance brokers in Burnaby have earned a reputation for being unnecessary middlemen in the hunt for affordable insurance. People genuinely seem to believe that insurance brokers are some nefarious crew bent on parting you with your hard-earned money in exchange for providing a service you could easily manage on your own.
In the previous paragraph alone there were no less than three untrue facts about insurance brokers and the vital service they provide. To better understand insurance brokers and how they can help, let’s debunk the five most common misconceptions people have about working with an insurance broker in Burnaby.
Myth: Insurance Brokers Make Getting Insurance More Expensive
Many people believe that insurance brokers charge their clients a fee in exchange for their service. And while it’s true that insurance brokers don’t work for free, their commission is paid by the insurance company and not the client. There is no cost to you, the client, and you will not be paying more for your insurance coverage to cover the broker’s fee; it’s simply a cost that the insurance company absorbs in return for the broker bringing in new business.
Myth: Insurance Brokers Work for the Insurance Companies
We’ve already covered an insurance broker’s fee structure. However, some people assume that insurance brokers work with only one or a few select companies and will therefore only present insurance options for those insurance providers. In reality, insurance brokers are like independent contractors; they are not tied to any specific company and will work hard to find you the best insurance policy from a wide range of providers.
Myth: Insurance Brokers Will Only Sell Particular Insurance Products
There is an insurance brokerage that can help you with just about any type of insurance product. Many people are familiar with mortgage brokers, but there are insurance brokers for all types of insurance, from home and vehicle to life and business policies.
Myth: An Insurance Broker’s Job Is Done As Soon As You Sign an Insurance Contract
People often assume that an insurance broker’s job is done as soon as they get paid. However, an insurance broker continues to be available to you long after you’ve signed on with an insurance company. If you even need help making a claim, your insurance broker can help. When your policy is up for renewal, your insurance broker can make sure you are still getting the best available coverage for the best possible price.
Myth: Anyone Can Call Themselves an Insurance Broker
Most people do not know that insurance brokers in Burnaby are highly trained industry professionals who need to pass a certification exam in order to receive their licensing. They are also required to maintain current knowledge of the industry standards and any regulatory changes.
Also Read: How to Choose a Vancouver Insurance Broker
To sum up, what we have covered, insurance brokers are highly trained insurance industry professionals who work for the client, not the insurance company, to help find them the best insurance coverage options. There is no fee to the client for this service, and the client directly benefits from the broker’s in-depth knowledge of many insurance products. An insurance broker can help you:
- Determine the appropriate coverage to best suit your situation.
- Compare multiple products from many companies to find the best coverage options.
- Advise you of specialty products or potential savings you may not be aware are available.
- Continue to follow you and keep you appraised of renewal dates and possible changes in your coverage.
An insurance broker is an industry expert working on your behalf; the service costs you nothing, and the knowledge they provide is invaluable.