There are two types of property and casualty insurance representatives:
- An insurance agent represents a direct insurer. As its employee, he or she exclusively sells the products of that insurer.
- An insurance broker can represent several insurers. Depending on your needs and your situation, he or she can propose different products, sourced from different insurers. He is independent and works for you.
1) True or False? Brokers are More Expensive
False! The insurance premium is not systematically more expensive if you are represented by a broker. The notion that because a broker is a distributor, he or she offers less competitive rates because of the profit margin is simly incorrect.
If you choose to deal with a direct insurer, they will have a single product to offer you: theirs. It may or may not be competitive. If you choose to deal with a direct insurer, they will offer you a product: theirs. It may or may not be competitive.
Your broker has access to a network of insurers and shops around for his clients. Since he represents many clients, he can negotiate with insurers on your behalf. You could therefore save money by dealing with a broker!
2. True or False? The Broker Represents your Interests in the Event of a Claim.
True. Lussier’s in-house claims adjustment department is here to assist you in the event of a claim. In every case, our broker works with the adjuster to ensure a fair and equitable claim settlement.
3.True or False? Your Broker is Closer to You
True! Leave the call centers behind. Lussier’s 28 branches across Quebec gives you the flexiblity to decide whether you want to pick up the phone, or come meet with us at one of our office lcoations. A bonus that really makes a difference for many of the people we surveyed* and for our clients!
*Survey conducted by telephone among 900 people in Quebec.
When asked "What do you think are the advantages of dealing with an insurance broker rather than a direct insurer?", 30% of respondents said they did not know or were not aware that direct insurers and brokers exist.