Some people will buy insurance from a company directly online or in person. While there are a couple of benefits, customers can get a better deal by using a broker. With life insurance alone, 44% of millennials overestimate the cost of insurance by 5 times the actual price. Possibly, they are not fully aware of the cost of other types of insurance.
Brokers are a useful tool in helping customers understand everything they need to know about all types of coverage policies and prices. They work hard to find the right coverage for you at a great deal. Brokers do so while keeping your wants and needs in mind. Since buyers get presented with various options, they often compare agents to personal insurance shoppers.
The Downside of Buying Insurance Directly
Getting insurance directly from a company can be faster at times. Some people enjoy that path just to get the process done as soon as possible. While it may seem more convenient, you often lose out on important options.
When you buy insurance directly instead of through a broker, you lose out on the personalized experience. Larger insurance businesses let you get quotes online, but smaller ones may not allow people to buy directly. You may not become aware of other viable plans if the insurance company only sells its products through agents. You could miss out on a policy that meets your needs.
Someone who is going through the quoting process or buying process may come across some terms that are hard to understand. They will have to rely on the company’s customer service call center or possibly the internet. As a result, a customer could end up paying more than they should for coverage.
The Difference Between Agents and Brokers
Buying insurance through a broker is beneficial because as an expert he will help navigate you through the quoting and buying process. An agent can explain the terms and make sure you purchase the right amount of coverage that meets your needs. Not every plan works for every person. The cheapest plan could be an outright dangerous choice for some people, yet an acceptable option for others.
When looking for an insurance broker or agent, you may notice there are two types of agents. The two kinds are captive agents and independent agents, but there are differences in whom they work for and the options they provide you.
Captive Agents
Captive agents only sell insurance plans from a single insurer. Major companies use this type of agent to get customers to buy their products. If a buyer is interested in a specific insurer, then they will want to know all their options. A captive agent is an expert of:
- The insurer’s multiple policies
- Discounts
- Coverage add-ons.
An agent can be helpful for those who are buying insurance for the time. Regardless of the type of insurance, these professionals will figure out the best option for you with the company they work for.
For every sale they make, captive agents get a commission. Therefore, customer satisfaction is highly important for them. This type of agent also receives a salary, so their commission rates tend to be lower.
Independent Bokers
People have the option to purchase insurance through an independent broker. Unlike captive agents, independent brokers can partner with multiple insurers and choose which policies to sell. They can select to work with a couple of companies to choose the right insurance plan from all the companies they are contacted with.
You may find that hiring an independent broker provides you with more coverage options. You do not have to pick from a small number of plans that may be too pricey for your needs. And the possibility to bundle different solutions can at times give you more benefits for a similar or lower price.
Independent brokers operate as their own business. They are responsible for their own office space and filing system. They have to pay all of their fees as well. And at the same time, most brokers will not charge you a fee for this extended service as commissions are already included in the typical premiums you pay for health insurance, no matte if you take advantage of their service or not.
Brokers Are Like Personal Shoppers
Insurance bokers are valuable workers in the industry. From 2018 to 2019, the workforce grew roughly 14.9%. Customers enjoy speaking with a broker over directly buying coverage. Only 29% of consumers like to purchase insurance online. The other 71% prefer human contact through talking face-to-face or on the phone.
Brokers act as your own personal shopper when searching for the right coverage plan. There are a few reasons why you should consider using an insurance broker.
Present Various Selections
When people imagine shopping, they may picture visiting several stores in a mall or different departments in a store. Insurance brokers will obtain quotes from several insurers. They will compare the multiple policies and prices to help you find what you are looking to get.
If you are working with a captive agent, they will show you the best policies and coverage add-ons that their specific company offers. You can look through a list of different options to see what is right for you.
Act as a One-Stop Shop
Several brokerages make it convenient for consumers by allowing them to satisfy all of their needs at once. If you are looking for life, dental, visions, disability, long-term care, and medical coverage, a broker can provide you with everything, especially independent brokers.
The one-stop shopping aspect of some insurance agents will help people save time. They can go to one place instead of having to search up multiple companies one at a time.
Provide a Personalized Service
Besides finding coverage that meets a person’s needs, insurance brokers will continue offering personalized service after you get a plan. Some stores and online shopping platforms send customers alerts of new products and special sales and discounts.
An insurance broker may do something similar. They can contact a person whenever new coverages become available. Clients may get notified when certain prices get lowered. Insurance agents can inform their clients about possible changes and upgrades to their current plan before its renewal.
Inform You of Trusted Insurers
Like any product, people want to buy from a brand they can trust. With so many insurer options, it may be hard to know which one is more reliable. Insurance agents are familiar with many of the companies.
Brokers are aware of the strengths of each business. For example, an agent may know which insurer is better at handling claims in comparison to competitors. They can inform clients which place has the better price.
Insurance brokers can make sure you find the best insurance company based on what is important to you. You will not have to worry about not receiving quality service.
How to Find the Right Broker
Get Recommendations
The first step in finding the right insurance agent is to ask a trusted source for recommendations. Word of mouth is a helpful way of finding an broker. A friend, family member, or co-worker can direct you to someone who has a good reputation for delivering quality service. When asking for referrals, make sure your trusted source is not going by who is the nicest person.
Do a Simple Background Check
Once you find a potential insurance broker, take a look into their background. Make sure their license is up to date and meets the state’s requirements. It can benefit you to check for any complaints previous clients have made.
Many people interview the agent to see if they are a good fit. Some questions to ask are:
- What insurer or insurers do you represent?
- Are you a captive agent or an independent agent that can offer me a variety of choices?
- If I need to file a claim, how can you help me in the process?
How Vanderbilt Healthcare Solutions Can Help
If you are looking for coverage, then Vanderbilt Healthcare Solutions is here to help. We provide insurance for individuals, families, and businesses. Our top brokers can offer you insurance plans for health insurance, life insurance, dental, vision, and more.
We make sure to maximize coverage for our clients while making it as affordable as possible. Our brokers lead the industry with customized healthcare solutions. Contact us today to receive a quote. You can expect correspondence from our experienced staff within a day.
