What’s the difference between an insurance broker and an insurance agent?

When you're in the market for insurance, it's good to know who to turn to for advice and who will work best with an insurance company on your behalf.

Brokers and agents sell insurance and function as the contact point between you and an insurance provider. They both sell you suitable plans based on your needs, require licensing and knowledge of regulations, and have binding authority to underwrite policies. (But general guidelines are issued by the insurance companies.)

That said, the two roles have different approaches.

An agent works for a single insurance company. So if you work exclusively with an agent, your options will come from a single insurance provider. Agents tend to know the ins and outs of the products they represent and can easily explain policy nuances.

A broker, however, represents multiple companies. They work with you to find a suitable insurance provider. They compare several options from many providers to find you the best fit.

As brokers are affiliated with more companies, they may be more likely able to find an attractive plan for your needs. Brokers must stay up-to-date on the latest trends, coverages and everything else related to insurance policies.

Whether you work with a broker or agent, the choice is ultimately yours. You're free to gather as many insurance quotes as you'd like. Since you're insuring your most valuable assets, learning as much as possible before purchasing an insurance plan is the best choice you can make.