Insurance Companies vs. Insurance Brokers: Is It Worth It?

Insurance is a necessary purchase – not one that you can take weeks to consider or simply decide not to make. It is a kind of protection against unknown emergencies –those that can bring a homeowner or company to their knees in an instant. Many people rush out to find the most publicized, well advertised insurance agencies – searching for the lowest rate available. While this can save some stress on your wallet, it may not give your family or your business the best coverage, or the best service. Insurance Brokers on the other hand may be a better option; especially for those who are first time insurance buyers or for smaller corporations.

When most people purchase insurance through a company, they are told to expect lower rates, better service and steady payment reductions due to "good behavior". This is especially true for auto insurance and motorcycle insurance. But unfortunately, the reality is, unless a change comes down the pipes that will affect all insurance holders, this will probably not happen. Customers have to be ever-vigilant over their policies and hound agents and companies to lower their rates. Brokers on the other hand, create a more personal relationship with their clients, and because of this their clients often benefit from better service and much better knowledge about the insurance industry in general.

Also stemming from this cozier relationship is the ability to have a policy that’s tailored specifically for you. Insurance brokers are committed to finding the best options for their customers – it’s their purpose. (That’s not to say that brokers aren’t out to make cash –they need to eat too. ) It’s true, independent brokers usually charge an admin fee on top of the rates. Larger insurance companies will often promise rates so small potential clients get so impressed they sign on the dotted line without a second thought… but at who’s expense? Some of the policies are so limited your home, vehicle or company wouldn’t stand a chance recouping any losses.

The lower rates of larger companies can also lead people to believe that they have an advocate in their agent. Unfortunately, agents tend to be more experienced with the administrative side of policies and the insurance industry, rather than looking for the best options for their clients; while brokers are required to have a license which generally comes with more education and experience. Brokers will make sure that your home insurance, auto or commercial insurance policies are thorough and accurate.

If ever you have to file a claim through your agency (which most of us have to do at one time) you may find that talking to the people at the "Head Office" or the call centre employees just doesn’t cut it. An insurance broker, on the other hand, lives right in your city, maybe even your community, and has the time to sit down and make sure you are looked after with compassion and speed.

Yes, there can be advantages to a large insurance company or an agent employed by one: you’ll be promised a dirt cheap rate, and you just may be fortunate enough to qualify for one. But you’ll never speak to the same person twice, and quite likely never figure out what your policy covers exactly. An insurance broker is there to be in your corner and to make sure that your back is covered, no matter what.



Established in 1936, Sadler Insurance is a full service independent Edmonton insurance broker, serving all Albertans. Insurance can be complex. Our goal is to provide sound advice and peace of mind. Visit www.sadlerin.com for more information today.