Difference between Insurance Agents or Insurance Brokers

Insurance Agents or Insurance Brokers

If you are looking for insurance, it is good to understand the difference between the insurance brokers and insurance agents. You should learn exactly what insurance brokers do, why you might want to work with one, what to look for, and how working with a broker in many cases is better than an insurance agent.

What Brokers Do

Brokers offer you numerous services when it comes to buying and holding an insurance policy. Brokers can:

  • Evaluate your insurance needs then recommend to you what insurance might be needed and why;
  • Compare the policies of various insurers, both with coverage and cost;
  • Explain each and everything that you don’t understand concerning insurance;
  • Offers follow-up advice at policy renewal times or at any time when your insurance needs changed;
  • And, if you file a claim, they will work with you to make certain that you are treated fairly by the insurer.


Insurance brokers must have a broker’s license. To get one, they must prove they have substantial knowledge of insurance.

Retail brokers

Brokers that work with you are known as “retail brokers.” And they don’t just work with you; they work for you, not for an insurance company. They analyse your insurance needs as well as help you decide how much and what type of insurance you need.

Any insurance companies 

They are also able to deal with any insurance company, which means they can get you the best rates because they are educated about the industry, what various insurers charge, how dependable the insurers are, what problems insureds like you have had collecting on policies, and other insider information.


Agents are also licensed in most states, though the standards are typically not quite as high as those for brokers. They work for the insurance company and can only sell the insurance products from that company.