Why do some people not use insurance brokers?

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PostPosted: Tue Nov 08, 2011 5:07 pm   Post subject: Why do some people not use insurance brokers?  

Maybe I'm naive...why would a company try and call insurance companies directly and spend so much time when they could just hire an insurance broker to get them business insurance? Seems so simple...No cash outlay, no risk. What am I missing?



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PostPosted: Tue Nov 08, 2011 7:41 pm   Post subject:   

Someone needs to be the agent. If a company is calling an insurance company for insurance, than the person they are speaking to would be acting an an agent.

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PostPosted: Wed Nov 09, 2011 11:50 pm   Post subject:   

Right of course someone needs to be the insurance broker. It is understandable that if an individual is doing it themselves, they are acting essentially as their own "insurance broker".



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PostPosted: Fri Nov 11, 2011 10:00 pm   Post subject:   

You must remember that there is a distinct legal difference between an "agent" and a "broker."



An agent, by law, represents their principal. In insurance transactions, the insurer is the principal represented by its agent, the producer.



A broker represents their client, such as a stock broker, mortgage broker, etc. Only certain states actually allow insurance brokers. So, if you want to call yourself a broker, you must live in a state which allows this.



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PostPosted: Wed Jan 25, 2012 12:50 pm   Post subject:   

Some of the companies doing that, because they don't have trust in agents, it happens with people, agents does not provide required information to the clients and that's why companies deal with insurance companies directly.



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PostPosted: Wed Jan 25, 2012 2:57 pm   Post subject:   

On the contrary, agents are better equipped and more knowledgeable about a wide range of products. You can explore a lot more options with the informed help of an agent than by going out there and shopping for insurance yourself.

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PostPosted: Mon Feb 13, 2012 3:28 pm   Post subject:   

Hi,

Agents are necessary for the Insurance, because insurance company can't come and specially check each and every people. Because the agents will act on behalf of Insurance company

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PostPosted: Thu May 24, 2012 8:49 pm   Post subject:   

Some people believe that when they get an agent they are paying for the middle man with high insurance premiums. They call an agency directly believing they will get lower insurance rates, when in reality the agent doesn't cost them a thing. Advertising shows them that direct = better/cheaper so they try to do it themselves when they can get a highly trained intermediary for free!

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PostPosted: Wed Aug 01, 2012 5:04 am   Post subject:   

Insurance Agent is must because they will be acting as a middle member between people and insurance company because every insurance companies can't come to the people and tell them all benefits about insurance services so agent is necessary for insurance company.

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PostPosted: Tue Aug 14, 2012 6:00 am   Post subject: insurance brokers.  

most companies have insurance brokers to promote their services and benifits to the people.they paid more. we can use internet is an alternative way.



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PostPosted: Tue Dec 11, 2012 1:17 am   Post subject: Insurance Brokers  

I am not sure why people would skip the insurance broker. The insurance broker will walk you through the risks of your business and help you determine the type of coverage you require. Then they will search for insurance from multiple carriers to get a few quotes. It saves the business owner a lot of time and effort.

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PostPosted: Tue Dec 11, 2012 5:15 pm   Post subject:   

Quote:
I am not sure why people would skip the insurance broker


Where would Home Depot be if folks didn't "skip the licensed contractor"?



It's the same discussion when you change the words to insurance broker/agent. People think they're going to save money if they "skip the middle-man". What they sometimes don't realize is that they won't pay less for their insurance on their own -- the insurance company can't really charge different rates to folks who go through an agent than they charge folks who purchase online directly from the insurer. The insurer just makes a little more profit on their direct sales.



We've all heard the horror stories about plumbers, painters, building contractors, and others who collected money for a shoddy job, or collected money and did nothing. Some things can be done "Do-It-Yourself" style, and some things cannot. And folks have heard about insurance agents who took the money for a policy and never provided the coverage. It happens.



As a licensed Broker-Agent, I choose to use the services of other brokers for most of my personal and business insurance needs. I could do it all myself, if I chose to, but I don't have access to as many companies as my brokers do, and they can get me better products than I can get.



People who DIY insurance may have the knowledge necessary, or they may only be interested in the lowest price. Either way, they get what they want. Unfortunately, for some, they don't get what they need.



I always tell folks here to use the services of a local independent agent or broker, because that's a prudent recommendation.


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PostPosted: Mon Feb 11, 2013 5:28 am   Post subject: Why not use insurance broker ?  

Brokers often represent only a small number of companies and even some even only one company which means they are not comparing many quotes for you. This may be the reason that some people do not prefer insurance broker.

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PostPosted: Thu Mar 05, 2015 10:47 am   Post subject:   

An agent must know the insurance laws and rules. They can simply fight against the situation. If you hire any insurance agent that's really good for you.

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