Agents, Brokers, Direct Writers

Insurance is a significant financial investment. You wouldn’t just hand over $2,000 for a car without doing your homework. Why would you buy insurance without doing your homework?

Here are some of the things you may need to know or think about:

There are 3 ways you can buy insurance:

• from a broker who deals with a number of companies and tries to find you the best deal; or
• from an agent who sells insurance for just one company; or
• directly from an insurance company, through a call centre and/or website (companies that sell insurance this way are called “direct writers”).
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How to Find a Broker, Agent or Direct Writer

• To find a direct writer you can contact the trade association for direct writers, the Canadian Association of Direct Response Insurers, at www.cadri.com  or 416-773-0101 for a list of their members.
• To find an agent you can ask for a referral from a trusted relative, friend or business associate.
• To find a broker you can ask for a referral from a trusted relative, friend or business associate; or contact the insurance brokers’ association in your province or the Insurance Brokers Association of Canada at www.ibac.ca.

If you want to find a broker who sells insurance for a particular company, contact that company directly or visit their website. They will be able to direct you to an appropriate broker.

What to Look For When Choosing an Agent or Broker

Your agent or broker should be: willing to take the time with you to understand your insurance needs and recommend the appropriate policy options; willing and able to explain your policy and coverage in clear, precise language; and appropriately licensed in your province.

Note: Every province has its own licensing bodies for brokers and agents. To verify whether an insurance agent or broker is licensed to sell insurance in your province, contact the appropriate licensing body for your province.