Many people wonder what in the world is the difference between an insurance agent and an insurance broker. Some people say, “Use a broker,” others say, “Trust your agent!” Who’s right and what is the inequity between them?
While the terms are thrown around to people like they’re the same thing, they aren’t. The differences, while small, are important to know.
AGENT
An agent is a term used when a person can legally represent an insurance company, and sells or services insurance policies for the company. There are two basic types of agents-captive agents and independent agents.
Captive Agent
This term is usually used when an insurance agent represents one insurance company. Even though the captive agent represents one company, that company might have lots of other companies.
For example, Status Farm Insurance(R) has several different companies and they all have the “State Farm” name as a part of their name. This is not always true; a company can have many companies under it and not share the same name at all.
Another example is Farmers Insurance (R). They sell insurance under many different names, including Farmers Group Inc., Fire Underwriters Assoc., Fire Insurance Exchange and Mid-Century Insurance Company. The name “Farmers” isn’t even a part of some of their names.
Independent Agent
This agent has contracts with multiple insurance companies, not just one (or perhaps two). Many times an independent agent is referred to as a broker because they do represent more than one company so they can “shop around” for the best deal on insurance coverages.
Using the Chubb Group of Insurance Companies, they have many different insurance companies under their control. Here are just two to give you an example: Federal Insurance Company and Great Northern Insurance Company. None of these has “Chubb” in their name, but they’re all share of the Chubb Group.
Independent agents usually deal with many different insurance companies to give you the most bang for your buck! But, it’s equally distinguished to remember that while independent agents can represent many different companies, few if any represent all insurance companies!
BROKER
http://dictionary.reference.com/browse/broker
Another person in the insurance marketplace is a broker. According to dictionary.com, a broker can be defined as, “a person who functions as an intermediary between two or more parties in negotiating agreements, bargains, or the like.”
If it sounds familiar, that’s because it’s very close to the definition of an independent agent, as listed above. Many people exhaust the terms “broker” and “independent agent” interchangeably and that’s ok.
Brokers also work with very vast companies, such as those on the Fortune 500 list. They can usually approach any insurance company to find out about insuring that very, very big company. Instead of being paid a commission, they may simply charge a fee for their services. But this isn’t practical for the average company.
Regardless of whether you occupy insurance from an agent, captive agent, independent agent, or broker, that person is paid a commission based upon your policy. Now you know the difference between agents and brokers! When you’re shopping around for insurance, you can ask which companies someone represents so that you are sure to get quotes from several different sources when looking for coverage.
Sources:
Dictionary.com: www.dictionary.com/broker
Farmers Insurance: www.farmers.com
State Farm Insurance: www.statefarm.com
The Chubb Group of Insurance Companies: www.chubb.com
Filed under Progressive Insurance by on Feb 24th, 2011. Comment. 
Although San Diego golf courses and San Diego public golf courses abound, one of the best courses in this warm and wonderful part of California is the san diego riverwalk golf course. A public golf course that was once the host to the PGA Tour, today’s San Diego Riverwalk Golf Course has been updated a bit from earlier years, but loses none of its vintage appeal for golfers who take advantage of this wonderful course and book tee times.
The San Diego Riverwalk Golf Course, which opened in 1997 and was designed by Ted Robinson Sr., is built along the scenic San Diego River, and the river plays a large section in the layout of the golf course. Riverwalk is the only one of the San Diego golf courses that features twenty-seven holes that are par seventy-two. Created out of three nine-hole courses, San Diego Riverwalk Golf Course abounds with water. Water is used on half of the twenty-seven holes, and a beautiful waterfall is featured on the signature hole of the course.
Earlier in its history, this southern California public golf course was known by several different names. In the 1960s the course was known as the Mission Valley Country Club, and later was called the Stardust Country Club before achieving its current name. In years past, San Diego Riverwalk Golf Course has been the host for the Farmers Insurance Open, which is part of the PGA Tour, although it was formerly known as the San Diego Open. From the 1960s until the 1980s, celebrity Andy Williams hosted this accepted event.
In addition to the San Diego Riverwalk Golf Course, many golfers also spend quality play time at other San Diego golf clubs and San Diego public golf courses. Popular san diego golf clubs include the lovely Vineyard at Escondido. Here you will experience a scenic layout that winds through acres of verdant wetlands with stunning mountain backdrops. Lush, rolling fairways meander along wildlife preserves. One of the popular San Diego public golf courses is the Lomas Santa Fe Country Club, With eighteen holes and rated at par seventy-two, many golfers be pleased the amazing views of the Pacific Ocean while playing the wide fairways and trying to stay clear of the bunkers. Child care is available here, as is a fitness facility, jacuzzi, spa, sauna room and swimming pool, so that the entire family will have an active time here.
Book golf course tee times at these and other top San Diego golf courses easily online.
Filed under Progressive Insurance by on Feb 22nd, 2011. Comment.
I am sure everyone has seen the cute little gecko commercial for Geico car insurance. They have another commercial now using a cave man; advertising that it is so easy a cave man can do it. It is easy. Prior to using Geico, we musty Progressive for our insurance. They were quite expensive. We had a problem with Progressive, because they cancelled us without warning and sent help our money, so we changed to Geico two years ago. I had just seen the commercial when I decided to go online and get a quote. The rate was fantastic, and lower than any insurance company that I had checked that day. I did the transaction online, and faxed in the information they asked for. I then was issued my insurance receipt which I printed off from the computer. It was so easy a cave man could do it!
Last winter I had a runt accident with our minivan. There was ice on the road that I didn’t’ glimpse and I went sliding off the road and down an embankment. I might have been killed, but a tree had broken my fall. The tree wasn’t very big, but if it wasn’t there, the car would have gone further down the embankment and I would have gone into a stream. It was a good ways down. Anyway, I was rescued by a motorist who saw me go off the road.
I called Geico and the operator was splendid and courteous. Within hours the car was removed from where I went off the road and loaded onto a wrecker truck. I called Geico, and the operator I talked to was very helpful. Within several hours an agent inspected the vehicle and took pictures of the damage. The frame was bent on the minivan, so the vehicle was totaled. Geico handled our claim so quickly that we had a check within a week. We were able to out and purchase another vehicle.
I would highly recommend Geico insurance company to anyone who is shopping around for insurance. Their rates are very competitive. They will give you a quote from their company as well as other companies. I also like that you can talk to an operator any time, because their customer service department is launch 24 hours. Just out of curiosity, I talked with a friend of mine that owns an insurance company. He gave me a quote, and I told him I was paying distinguished less than his quote. He told me to stick with the company I am with, because I am getting a great deal.
So, when you see the funny slight commercial about Geico. You can believe what it is saying about Geico. I saved $200 a year by switching. I am so glad that Progressive cancelled us and we tried Geico! It is so simple, even I can do it.
Filed under Progressive Insurance by on Feb 20th, 2011. Comment.
