Insurance Agent vs. Broker

Anyone in need of insurance for any reason typically seeks the advice of an insurance agent, but there are other options of which people should be aware. They can shop for insurance through an insurance agent or an insurance broker. Both are intermediates between the buyer and the insurance company. Both are licensed professionals, but they approach insurance sales in a distinctly different way.

Insurance Agents

An insurance agent represents one or more insurance companies and is typically employed by one of the companies. Captive agents represent a single company, while independent agents represent more than one company. Insurance agents earn a commission for every policy they sell. Only insurance agents are authorized to create binding coverage.

Insurance agents will offer policies written by the companies for which they work. Insurance agents are motivated to assist and sell policies that will provide the customer with excellent coverage that meets their needs.

Insurance Brokers

Insurance brokers represent the buyer and work to provide them with different insurance options from which to choose that meet their specific needs and budgetary requirements. When an individual decides on an option located by the broker, the broker then turns the account over to an insurance agent. Brokers aren’t authorized to create binding coverage.

An insurance broker will use their experience and expertise to search for opportunities to reduce premiums. They can also assist individuals in navigating the complexities of insurance by eliminating the legalese and explaining policies in plain, easy-to-understand language.

Brokers are typically paid commissions by insurance companies ranging from 2 to 8 percent of the premiums of an insurance policy they refer to an agent, depending on state regulations. Some brokers may also receive a smaller, residual annual income during a policy’s lifetime.

For more information about how The Sena Group can help you with any

of your insurance needs, please contact us at 561-391-4661.

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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487