Tackling A Few Of The Most Common Misconceptions About Insurance Brokers

When so many aspects of your life need some sort of financial protection, from your car to your home to your health, it can be overwhelming to wade through all the information about the different types of insurance coverage available. This is why insurance brokers are such valuable professionals to have around. They have the knowledge and familiarity needed to help you make the best decisions about insurance coverage options for everything from your home to your health. Even as valuable as these skilled professionals may be, there are a lot of misconceptions concerning insurance brokers and their services. Here are a few of the most common misunderstandings and the facts you should really know.

Misconception: Insurance brokers are always connected to specific companies.

Fact: This misconception comes in because insurance brokers and insurance agents are commonly confused. Insurance agents are actually contracted by a specific insurance company to work with customers and bring in more policy holders, but insurance brokers are not. The professional broker serves as a non-affiliated person who can help you make informed decisions about coverage options, without having a biased opinion about a specific company.

Even further, the best broker will usually work to build a plan that suits your insurance needs, but the whole policy may have coverages from different companies to get you the best price. For example, you may have automobile insurance from one company because they have the best rates for low-deductible coverage options, but your health insurance is through a completely different provider because they have excellent prescription drug benefits available.

Misconception: Insurance brokers are just regular people with knowledge of policies and have no formal training.

Fact: According to the Insurance Brokers Association of Canada, all insurance brokers must be appropriately licensed before practicing their services and each province has their own requirements in place for licensure. For example, in the British Columbia, prospective brokers must take a fundamentals of insurance course that exposes them to a comprehensive look at different aspects of coverage and coverage types, in addition to taking other classes and passing an exam. The hours of training and hands-on learning means that making the most effective choice for others, where insurance is concerned, becomes a simple process that you can rely on as a client.

When you take a look at the facts instead of believing the misconceptions, it is easy to see why insurance brokers have been trusted professionals in the industry for many years. If you have questions about various types of coverage, or just concerns about using their services, talk to an insurance brokerage firm like Cambridge Insurance Brokers (Preston) Ltd for more insight.