First time home buyers have so much to think about when it comes to buying a home.
Choosing a real estate agent, dealing with a lawyer, how they’re going to finance their new home purchase etc.
Getting their home insurance policy in place should be one of the simpler tasks on their plate, which is why an insurance agent can help.
WHAT’S THE DIFFERENCE BETWEEN AN INSURANCE AGENT AND AN INSURANCE BROKER?
This is a question we hear often.
So often in fact that we have put together a handy little comparison chart to offer an overview of the differences between an insurance agent and an insurance broker.
INSURANCE AGENT
– Represents: One insurance company (e.g. Erie Mutual Insurance)
– Product Knowledge: Deep understanding of their company’s policy options.
– Access to discounts: Some insurance companies offer lower rates or exclusive discounts only through their in-house agents. E.g. our 25% off home insurance for first time home buyers.
– Will you have a direct relationship with the insurance company you’re insured with? Yes, always. You work directly with the insurance company.
INSURANCE BROKER
– Represents: Multiple insurance companies
– Product Knowledge: Knows some of several insurance company policies
– Access to discounts: May have some access to some insurance discounts through the companies they represent
– Will you have a direct relationship with the insurance company you’re insured with: Sometimes.
WHY AN INSURANCE AGENT IS BEST FOR FIRST TIME HOME BUYERS
Working with an insurance agent is a great choice for first-time home buyers, especially those who value simplicity, brand loyalty and streamlined service.
Let’s expand a bit on the items mentioned above.
1/ MORE SIMPLE AND STREAMLINED
Since insurance agents represent just one company, it makes the process simpler than working with an insurance broker.
This is often welcomed news for overwhelmed first time home buyers.
An agent can help bundle your home insurance with other insurance products you may have or need (auto insurance, business insurance etc,)
2/ STRONGER PRODUCT KNOWLEDGE
Insurance agents have a deeper expertise of their company’s insurance policies, coverage options and claim process compared to an insurance broker who deals with many different insurance companies.
You’ll get peace of mind knowing your agent understands all the nuances of everything you are wondering about.
3/ ACCESS TO EXCLUSIVE DISCOUNTS
This may be the best part!
While insurance brokers are sometimes able to connect first time home buyers with some discount options, an agent often has better access to more discounts through their company.
Why? Insurance companies may not allow brokers to deal with all of their discounts, leaving the best ones exclusive to their employed agents.
Insurance agents can also help you customize your policy to suit your needs and potentially pay less. For example, if you increase your deductible your monthly insurance cost will be lower.
4/ DIRECT RELATIONSHIP WITH THE INSURANCE COMPANY
Anyone who has had to work through a middleman to deal with the company they’re ultimately getting the service from will likely attest to how that can lead to:
- Poor communication
- Less quality service
- Delays
An insurance broker acts as the middleman between you and the insurance company.
An insurance agent is your direct line to the insurance company.
This comes in especially handy when it’s time to adjust or renew your insurance policy or may have an insurance claim.
If you want to feel valued, if you want quick turnaround times, if you want tailored service and insurance products, work with an insurance agent.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
