Insurance Agents vs Insurance Brokers – What is the difference?
- Katelyn McKeone
- Sep 23
- 3 min read
Updated: Sep 26
Insurance Agents and Insurance Brokers might seem like the same role wrapped into two similar packages, but they actually have vital distinctions. We’ll break down the important differences between Insurance Agents and Insurance Brokers and provide the pros and cons of each.
Main differences
Insurance agents vs brokers. Both can help you reach your goal of purchasing an insurance policy. However, an agent sells, while a broker helps compare several insurers and choose the most suitable one.
Insurance Agents
Insurance agents represent the insurance company that employs them. They offer products to businesses, individuals, and public institutions only from the range provided by their own insurer.
An Insurance Agent sells insurance products from the company they represent.
Insurance Brokers
Insurance Brokers represent their clients, but they also maintain relationships with multiple insurance companies. Most brokers focus on serving companies and government entities because they are able to spend more time navigating their needs.
An Insurance Broker helps you shop for insurance across the entire market.
Working with an Insurance Broker: Pros and Cons
Pros:
Offers from multiple insurance companies
Personal support and careful analysis of the clients’ needs
Advocacy and the ability to negotiate customized policies with the insurance company.
Comprehensive policy comparisons and thorough explanations of the policy options
Guidance throughout the policy duration and reminders when it’s time to renew.
Cons:
The process can take longer than working with an Agent due to the thorough nature.
Not all brokers provide the same quality. Some are better, some are worse.
Brokers do not typically work with individuals
Working with an Insurance Agent: Pros and Cons
Pros:
Simple and quick turn-around due to fewer choices
Directly connected to the insurance company
Reminders when it’s time to renew
Agents work with individuals
Cons:
Offers from only one insurance company
Services can feel rushed and impersonal
Lack of support during the policy duration
FAQ
Do Insurance Brokers work for Insurance Companies?
No, brokers operate within their own company. However, brokers maintain strong relationships with Insurance Companies so that they can advocate for their client and examine every possible policy.
Can an Insurance Agent be called An Insurance Broker?
Many people confuse these terms — agent and broker — but the differences in service are significant. The best way to make sure you are working with a real broker is to look at the offers. If you receive offers only from one company, you are most likely working with an agent, not a broker. All insurance brokerage firms are registered in the register maintained by the Bank of Latvia – bank.lv.
How are Insurance Brokers paid?
Just like insurance agents, brokers also receive compensation in the form of a commission, which is included in the policy price without making the policy more expensive. This fee is allocated to the person who helps arrange the insurance policy — either the broker or the agent.
Can you use both an insurance Broker and an Insurance Agent?
There is no need to have both. You may think it could be helpful to find a policy with a broker and then purchase it with an agent, but this is an unnecessary extra step. Brokers facilitate the purchase and help you fill out the correct documents. There are no hidden fees to using a broker. Additionally, a broker can negotiate with the insurance company and create a customized plan for you.
Insurance Brokers vs Insurance Agents
Choosing between an insurance agent and a broker depends on how much choice and support you’d like to receive. If you need a quick and basic solution, an agent is the way to go. If you want to get the most value from your coverage, an Insurance Broker is the better choice.
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