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What’s the difference between a broker and an insurance company?

Many people don’t realize there’s a difference between an insurance broker and an insurance company. In fact, while they have similarities, they are very different.

An insurance broker represents a number of different insurance companies. They may be independent or may be owned by an insurance company. Acera Insurance is an independent insurance broker, meaning we can over completely honest insurance advice and also work with a large number of insurance partners. This allows us to get truly competitive quotes and compare coverage to get you the best possible insurance for the price.

An insurance company handles the actual policy and insurance. They enter into a contract with the client which essentially promises compensation in the case of damage or loss (if it is covered as per the policy terms). They set the rates, determine coverage, and deal with claims.

What is the role of the broker after you purchase a policy?

Your broker works with you to continually ensure that you have the best policy for your needs while keeping an eye on price. They keep you up to date and informed around your policy and risk management. They’re there to answer your questions, make changes to your policy, help with payments and support you through the claims process.

What is the role of the insurance company after you purchase a policy?

Your insurance company will send you policy documents and official notifications of any changes to your coverage. They determine your insurance premiums and may accept payment directly. Their staff is also who you will deal with in the event of a claim (in most cases).

Why should I use an insurance broker?

An insurance broker can provide you with independent insurance advice. They can also take care of the price shopping and coverage comparisons when you’re purchasing insurance or looking to change insurance companies. They’re also there to support you through anything insurance related.

So, my broker has nothing to do with insurance rates?

No, your broker does not have any control over your insurance rates or coverage. This is the insurance company. If your rates go up, it has nothing to do with your broker. Our job is to advise how you can get lower rates and see if we can get you a better price with another insurance company.

A good broker will help you make the most of your insurance coverage. They’ll find you the coverage that meets your needs for the best possible price and continue to provide service and support.