Insurance broker vs. agent

Anytime you purchase insurance, you have the option of buying it through an insurance broker or an insurance agent. Both will result in you purchasing a policy, but there are a few key differences in the ways they operate and can help you. So, what's the difference between an insurance broker and an insurance agent? Let's dive in.

What are insurance brokers and insurance agents?

Insurance agents and brokers are professionals who sell insurance, and many choose to specialize in specific areas, like home insurance, car insurance, or life insurance. Both agents and brokers must be licensed in the province or territory where they operate and follow all industry rules and regulations.

What is an insurance agent?

An insurance agent is a licensed insurance professional who sells insurance policies for an insurance company. Since they’re provincially licensed and well-versed in their company’s products, they can answer questions and guide you toward the right coverage.

Unlike brokers, insurance agents represent insurance companies as salaried employees. That means they’re trained to sell the company’s full lineup of insurance products. If you’re considering a policy from a particular insurer, an agent can walk you through the details and help you understand your options.

Types of insurance agents

There are two types of insurance agents, captive agents and independent agents. Here's how they differ:

Captive agents

Captive agents work exclusively for one insurance company. Since they’re company employees, they get support like office space, HR benefits, and client leads. In return, they only sell their employer’s insurance products.

Because they specialize in one company’s offerings, captive agents are well-versed in their policies and have the latest details on coverage options. However, they won’t be able to compare options from other insurers—and even if they’re aware of alternatives, their job is to sell their company’s products, not recommend competitors.

Independent agents

Unlike captive agents, independent insurance agents work with multiple insurance companies, giving them access to a wider range of coverage options. They can also provide extra benefits like advice and claims support.

While independent agents share some similarities with brokers, there’s one key difference: independent agents still represent insurance companies, whereas brokers work for you, the customer. Independent agents aren’t tied to just one insurer, but their priority is still the companies they work with—not necessarily finding you the best deal on the market.

What's an insurance broker?

An insurance broker is a licensed professional who either works for a brokerage firm, partners with others, or runs their own business. They help you find the best insurance policy by comparing options from multiple insurance companies. Since they’re provincially licensed and independent, they aren’t tied to any single insurance company. Instead, they work for you, searching for insurance coverage that fits your needs and budget.

Insurance brokers have access to a wide range of insurance providers and options, and they possess a deep understanding of the ever-changing insurance industry, which sets them apart. They can:

• Explain different policies
• Compare insurance quotes from multiple insurance carriers
• Help you choose the best coverage

Whether you need home, auto, or business insurance, a broker can provide unbiased advice and tailor a solution to your situation.

Brokers work for you, not a company

Unlike agents who represent a specific company, insurance brokers represent you, the customer. Brokers like the ones here at BrokerLink take the time to understand your unique lifestyle, property, or business operations so we can find the best insurance options for you. Our goal is to give you peace of mind, knowing you're protected against financial loss. Since no two people or businesses are the same, your insurance coverage should be just as unique, tailored to fit your specific needs and provide the protection you deserve.

We can also secure discounts or special offers you wouldn’t find on your own. Since we work with multiple insurers, we can often negotiate better rates or recommend bundling options to help you save.

The main differences between insurance brokers and agents

Now that you know the basics, let’s break down the key differences between brokers and agents. While both help customers find insurance coverage, they operate in different ways. Here’s a simple comparison to make it easier to understand:

The benefits of working with insurance brokers

There are several benefits to working with an insurance broker, such as:

They represent you

One of the biggest advantages of working with an insurance broker is that they represent you, not an insurance company. Their goal is to find the best coverage for your needs, which means they take the time to research policies from multiple insurers. Since they have access to a wide range of options, brokers can compare rates, find the best deals, and even offer money-saving tips.

They can work with your budget

Brokers can also work within different budgets. By gathering quotes from various providers, they help you find a policy that fits both your needs and your price range. Plus, they take the legwork out of shopping for insurance—you just tell them what you’re looking for, and they handle the rest. And with today’s technology, buying insurance through a broker is quick and easy, often done entirely online or over the phone.

They offer personalized service

Brokers focus on building long-term relationships with their customers, keeping track of their history and future needs. This means as your life or business changes, your insurance coverage can adjust along with it. Since brokers remember your past claims and policy changes, they can offer more personalized advice and proactive recommendations to make sure you’re always properly covered.

They offer comprehensive risk management

Brokers take a big-picture approach to your insurance needs, considering every aspect of your life or business. This ensures you have the right level of protection, covering all potential risks without paying for coverage you don’t need.

How to buy insurance through an insurance broker

If you think buying insurance through an insurance broker is right for you, follow the steps below to get started:

1. Contact an insurance broker

The first step to finding the best coverage at the lowest rate is to contact a local insurance broker like BrokerLink. We're available to take your calls, answer your emails, or chat in person at any one of our locations across Canada. At BrokerLink, an expert insurance advisor can answer your questions, provide you with a free quote, and get to know your insurance needs.

2. Let us shop around on your behalf

The second step of buying insurance through a broker is the easy part—sit back and relax. That’s right, when you work with a broker, they do all the work for you and you can spend your free time how you want to be spending it. Meanwhile, your dedicated BrokerLink insurance advisor will be contacting Canada’s top insurance companies to obtain and compare quotes to find you the best rate.

3. You get a great rate

The final step to purchasing insurance through a broker is getting a great rate. Since BrokerLink insurance brokers are licensed insurance experts, they know where to look for the best insurance deals. Your advisor will give you several options to choose from, walk you through each, and then it’s up to you to pick your favourite.

Insurance broker vs. agent—which is right for you?

When shopping for home or auto insurance, one of the first decisions you’ll need to make is whether to work with a broker or buy directly through an agent. Remember, a broker represents you, while an agent represents the insurance company they work for.

This can have a big impact on your experience. Many people prefer working with someone who prioritizes their needs over a company’s, but there are situations where buying through an agent makes sense.

For example, if you’ve been with the same insurance provider for years and feel comfortable sticking with them, an agent might be the right fit. On the other hand, if you’re new to insurance or want to be sure you’re getting the best coverage at the best price, a broker can offer valuable guidance and comparison shopping. To figure out which option is best for you, consider these questions:

• Is this my first time buying insurance?
• Do I value convenience or cost savings more?
• Do I have time to compare quotes and research policies?
• Will I need to adjust my coverage or add endorsements in the future?
• Are my insurance needs simple or more complex?
• How important is easy access to my provider?
• If I need to file a claim, will I know how to do it, or will I need help?

Contact BrokerLink for a free insurance quote

As you weigh your options, we invite you to take advantage of BrokerLink’s online quote tool. Using this tool, prospective customers can receive a free quote on whatever type of insurance they are looking for. All BrokerLink insurance quotes are accurate, competitive, and 100% obligation-free.

Beyond our free quotes, BrokerLink is here to answer any questions you may have about what it’s like to work with a broker, including how to choose a good insurance broker. We explain what distinguishes us from insurance agents and offer unbiased advice on the best type of insurance for you and your family. Contact BrokerLink today to learn more about insurance brokers and coverage in Canada. You can reach us by phone, by email, or in person at any one of our locations throughout Canada.

[phone]