agent) who represents only one company and might be salaried, might work on commission, or a combination of the two. The second is indirectly through an independent agent who represents multiple companies, which means he or she can look for the best deal for you. The third way is also indirect—through brokers who serve as go-betweens between their clients and insurance companies. Both independent agents and brokers work on commission. The distinction between independent agents and brokers can get a little confusing, so here’s a little help:
Independent Agents:
• represent insurance companies • work with a limited number of companies • can often sign up clients for exclusive policies • paid by commission
Brokers:
• represent buyers • work with a greater number of companies • usually don’t have access to exclusive policies • paid by the insurance provider’s quote, plus the commission
The process is different, depending on which route you choose. If you decide to buy directly, you’ll have to put in the time and effort to compare different insurance companies’ policies. Also, if any issues come up after you’ve set up the policy, it’s possible you’ll have to go through customer service rather than speaking directly to the agent who helped you set up your policy. If you decide to buy indirectly using an agent or broker, they’re 7
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