Have you ever wondered what the terms ‘agent’ and ‘broker’ mean when shopping for insurance?
Both titles refer to licensed professionals who act as intermediaries between the insurer and policyholders. The former represents one or more companies and the latter acts on your behalf.
Each individual or firm is different, so if you’re looking for an expert to offer you the advice that suits your protection requirements, you’ll need to do your homework.
Here’s a guide to help in your selection process. You can also check out other online tips to learn more.
What to Look for in a Broker
Reputation
Although the profession is regulated, it pays to be sure that you’ll be working with a licensed individual or company. The National Association of Insurance Commissioners (NAIC) suggests that you get this information from your state’s insurance department.
The next place to look for trustworthy mediators is the Better Business Bureau. Their website lists profiles of businesses in every industry. If a firm has a low reputation due to complaints filed against it, that information will prove invaluable to your decision.
Excellent Track Record
Since brokers work for you, you’ll want to choose at least one of the best in your locale. Contact the candidates on your shortlist and ask them for their credentials.
Most of them will offer evidence of their performance and history. Testimonials from their customers are a good indication of the quality of the service they provide.
Be sure to check the references given to you. Don’t take everything for granted.
Specialized Knowledge
You’ll be able to get more detailed information to make an informed decision if you find an advisor with vast experience in the specific field you’re involved in.
A specialist will also be able to tailor your coverage to suit your budget and needs and prevent any future issues in the event of a claim.
Personalized Service
Although you should look for an established broker, there are exceptions. It would be best if you also consider a smaller business setup that meets the criteria discussed above because of the dedicated service they can provide.
You should have easy and direct access to your advisor whenever you have questions or need help. When dealing with corporations, you might have to speak to an employee who may not have all the answers or decision-making authority.
Reasonable Fees
No selection process is complete without taking into consideration the expense you’ll incur, although money should not be your primary concern.
While expensive charges don’t guarantee the best service, choosing the cheapest option is riskier. You usually get what you pay for.
So, if you want to save costs, you’ll need to identify an expert that offers excellent value at a fair price.
The Importance of Working With a Good Broker
As insurance is critical to safeguarding your assets and finances, finding the right advisor is vital. To recap, the key factors to consider during your search are reputation, track record, knowledge, service, and fees.
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