As you know, Ontario has a private insurance system, which means you should buy auto insurance from private insurance companies.
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What is a Car Insurance Broker?
Shopping around is the best way to find a policy fit for you with a sensible price, but it is also a pain. Comparing insurance companies and policies and prices are so time-consuming and baffling, especially when you have no idea what exactly you need. That’s where insurance brokers can help you.
What are car insurance brokers, and what do they do?
An insurance broker or an independent insurance agent is a person that is licensed to search on your behalf and find the perfect policy for you. Brokers are insurance experts.
The only thing you have to do is tell them what your insurance needs are, and they search the market and give you a list of options. The best part is that insurance brokers do not work for a specific insurance company.
They have access to a wide range of different companies, and their only goal is to find you the best policy among them.
Brokers also help you make a claim, guide you through the process and even lead the negotiations with your insurer.
What is an Auto Insurance Underwriter?
What are captive agents?
Insurance agents or captive agents are professionals who work for a specific insurance company and sell their products to customers for a commission. Agents’ job is also to find a policy for customers, but they have limited to the policies the company they work for offers.
What are the significant differences between an independent agent and a captive agent?
There are three main differences between agents and brokers:
- Brokers represent the customer, but agents represent the insurance company.
- Brokers have access to the policies of different companies, while the captive agents can only offer policies the company, they work for offers.
- Captive agents can complete insurance sales, but brokers cannot.
Some insurance companies like the traditional ways and only sell their policies through agents, some others like Intact, Economical, and Pembridge only sell their product through brokers, and some companies sell through both brokers and agents.
What does it cost to use a broker?
Brokers get paid in 2 forms:
- Commission:
If the broker you work with is on commission, you don’t need to pay them; the insurance provider pays a percentage of your insurance premium to them if you purchase a policy. - Fees:
Some independent agents require fees. In this care, you need to ask them about the fees and commission for using their services before contracting auto insurance.
When to use insurance brokers?
If you are a driver in Ontario, you have to have a valid insurance policy to protect you and others. Many people choose to search for the policy they want on their own using available online quote tools, usually provided by large insurers or some broker sites.
However, getting the help of an expert can help you with your auto insurance costs, and you may get a policy better than what you had in your mind.
Who should use an auto insurance broker?
If you need help figuring out what coverages you need. Are you new to the auto insurance industry? If you have special needs. Do you own an antique or classic car? A high-end performance car?
Have multiple cars and homes? Need insurance for your business m to want to save money? Want an expert opinion?
Brokers can help you with all that at the cheapest rates they can get their hands on.
Classic Car Insurance Ontario Requirements
What are the privileges of using brokers?
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Expertise:
Brokers have the expertise you may not have; they know tricks of the trade, loopholes and dense legal language necessary for finding the perfect policy.
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Identifying your needs:
You may be new to the auto insurance industry, or you might not know what is best for you and end up wasting money. A broker can help you find a suitable policy at a reasonable price.
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Specialist insurers:
Brokers can get quotes from specialist insurers from you that don’t deal with the public directly. This is very useful if you own a classic or antique car, a car you made specific personalization for yourself, or a high-end performance vehicle.
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Saving time:
Are you busy with work or family? Or you simply don’t want to spend time finding a policy? It’s ok, brokers can save you time and search the market on your behalf.
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Access:
Although you can get a quote online any time you want, some insurers only sell their product through agents. Brokers have access to all available insurance companies, and paying them to fish out a policy for you is less time-consuming and takes less effort.
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Customization:
Brokers can customize a policy for you to put on any additional coverage you need at a sensible price.
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Adjustments:
Your needs change over years, and most likely so does your auto insurance policy. For example, you may buy another car, a house or get married; all these factors impact your premium, and brokers can make adjustments for you, so the changes in your life wouldn’t cost you a lot of money.
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Preferential rates:
Since brokers deal with insurers a lot, chances are they have a relationship with insurance providers, and it often results in negotiations for lower rates on your car insurance policy.
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Priority:
The fact that your needs are the priority for brokers is very beneficial. Someone who knows how to deal with insurance providers to get on their good side for you.
The only downside is that your needs might not be complex, or you may not need a broker at all. In that case, you’re just wasting money paying a broker to find you what you could do yourself.
Who should not use brokers’ help?
Good drivers with a clean driving record and not-so-complicated insurance needs can feel free and take matters into their own hands and find a suitable policy with a sensible price themselves.
So, is it better to get insurance through a broker?
It entirely depends on you. If you compare captive agent vs. broker, it makes more sense to choose brokers; although they command a fee or commission for their services, they are committed to you and your needs. Plus, it’s great to have a professional to talk to and ask their opinion.
Will you save money if you use a broker?
Again, it depends on you. The brokers’ only goal is to save you money, to find you the best policy at the lowest price. But if you have basic needs, then you will waste money paying a broker.
What information will your broker need from you?
The same information you give to any insurance professional. Like your age, model of your car, yearly mileage, driving history, etc.
Is there any other way to buy insurance?
Of course, there is. Here are some other ways:
1. Directly buy from an insurance company:
Almost all insurance providers sell their policies through their websites. They are very user-friendly. You have to put in your info and purchase your insurance plan directly from the company.
2. Get in touch with a captive agent:
If you know you want to work with a specific insurance provider, you should just call and talk to one of their captive agents and purchase a policy.
