Broker versus Direct Writer

Why Choose an Insurance Broker

When it comes to choosing the correct home insurance, car insurance, or insurance for your business, there are numerous things to consider. In most cases, insurance comes as a necessity, coverages such as home or car insurance are required at the time of purchase in order for possession to take place. Choosing who to purchase insurance from can be just as tricky. When it comes to the option between a direct writer or an insurance broker, take into account these benefits of working with an insurance brokerage:

• Cost: As a main factor of purchasing practically anything, cost provides the consumer with the ability to shop around in hopes of finding the best deal. When a customer contacts a direct writer, they are limited to the offerings of that specific company. When a customer contacts an insurance brokerage they are provided with a wide range of products, and will be presented with different price points. To sum this up, the broker does the shopping for their customers so they don’t have too.

• Coverage: Similar to cost, finding the correct coverage can be tricky when it comes to the customer doing the leg work themselves. Calling a direct writer for a policy can limit coverage options. Most importantly it could cause confusion and the customer may purchase the only coverage available not knowing if it actually provides the full coverage they require. An insurance broker who works with many insurers can source not only the best price for their client, but will also ensure that the best coverages are met, and that the coverages applicable are fully explained prior to the client taking the policy. This is the difference between up-selling and educating.

• Service: When shopping for insurance, a consumer is looking to their friends, colleagues and people they trust to provide them with recommendations of which insurance company they should work with. Research is also done in the form of checking places such as Facebook, Google, and Yelp for business reviews and ratings. Keep in mind that insurance is an ongoing commitment; if a consumer purchases insurance today from a direct writer, there is a good chance that tomorrow if he gets in an accident he would not be speaking with the same person. Brokers are different, with a huge commitment and focus on building strong customer relationships, a broker will help choose the correct insurance, maintain a relationship throughout the ownership of it, and will be there to assist with questions along the way. A good  way a brokerage can make a difference is their commitment and availability. For example Leibel Insurance Group brokers each have their own direct phone number. Working with a broker that can be contacted anytime is just one example of a positive customer relationship.

• Simplicity: Unlike a direct writer, a broker is working for the client, not the insurance company. With their clients’ best interest at heart, a broker is trained to provide ease of mind and understanding, not just to make the sale.

Working with a broker can help create an understanding of which coverages are needed, they shop around for the best coverages and rates available and provide their clients with these options. Their focus is their clients, to protect them and to build valued relationships with them, this means customer service is their primary job, they are not sales people. A broker is knowledgeable and helps educate their clients. Working with a broker can be easy and informative without the hassle.

Looking to work with an Insurance Brokerage?

Contact the Leibel Insurance Team at 780-484-8880 today!