What is the difference between Insurance Agent and Broker?

Some people use insurance agent and broker interchangeably probably because both professions will have the ability to sell insurance. The main difference between the two is to whom they work for. When you say an insurance agent, this means that the agent is under one company. The agent will handle projects and policies that are only related to the company that they are working for.

They will not be allowed to sell policies of the competitors. Insurance brokers can be associated with different companies and even to individual sellers. This means that they will be able to offer more insurance types and policies if in case you are searching for the right insurance to get.

Both insurance agents and brokers sell insurance. Agents are associated with one company, while brokers can work with a number of companies at once. Brokers have more variety avaliable to sell to their clients. To sell insurance, an insurance agent must have an appointment, which is a legal contract with the insurer. Insurance brokers have a license to sell insurance, which is issued by the state.

Brokers are seen as more trustworthy and unbiased, for they are selling for multiple companies and able to find the best quote for their client. In regards to salary, brokers make more than insurance agents.