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Car Insurance Broker in Canada

May 29, 2012

The terms broker and agent are often used interchangeably when it comes to car insurance, however, there is a difference; one that is important to know when you are looking to get quotes for your policy.

The Financial Services Commission of Ontario (FSCO), in charge of regulating auto insurance in Ontario, provides the following definition on their website:

In Alberta, the definition is similar. The Automobile Insurance Rate Board provides the following definition on their website:

Compare quotes from both car insurance brokers and car insurance agents

Most people, when making an auto insurance comparison, will only look at the price being charged and use this as the only variable to consider. However, you will also want to ensure that you have a rapport with the person who ends up being your car insurance broker or car insurance agent. This is important because this person will be your first point of contact should you ever have questions about your policy, or have to submit a claim.

Part of building a rapport involves asking questions, lots of them. Good questions to ask could be, “What professional designations do you hold?”, “How many years experience do you have as a car insurance broker/car insurance agent?”,“If I have questions, how can you be reached?”, “How will you be able to help me if I’m in an accident?”, “What happens if you are not available?”, “Will you always be the person I talk to for advice or answers?”, and “What was the last insurance-related seminar you attended?”

The answers to the above questions do not give you a black and white answer, but will help to forge an opinion which you can then use to make an effective decision about whether or not you want to work with this person regardless whether they are an agent or a broker.

Auto insurance broker compensation

As a customer you have a right to know the commission rate that your broker or agent is receiving. Disclosing this information is something that a reputable and trustworthy specialist would have no issues with.

For more information about brokers and agents and what they can do for you, read the article titled, “Who’s who in insurance”.

Further reading