How to Choose an Insurance Agent or Broker (Guide)

How to Choose an Insurance Agent (US & Canada Guide)

Choosing the right insurance agent or broker can affect more than just the price you pay—it can shape how well your coverage works when you actually need it. Whether you're shopping for auto, home, life, health, or small business insurance, the person helping you choose a policy plays a key role in understanding your options, handling paperwork, and even guiding you through claims.

In the US and Canada, you can buy insurance in three main ways:

• Directly from an insurance company (online or via call center),
• Through a captive agent who represents one insurer, or
• Through an independent insurance agent or broker who can quote and compare multiple companies on your behalf.

This guide walks you through exactly how to choose an insurance agent or broker that fits your needs. We'll help you understand the types of agents, how to check credentials, what to expect in service, and the exact questions to ask an insurance advisor before making your decision.

Key Questions to Ask an Insurance Agent or Broker

Before you commit, a short conversation can reveal a lot about whether the agent—or broker—is the right fit for your insurance needs. Here are 10 practical, high-impact questions to ask during your initial consultation:

• Are you a captive agent, independent agent, or broker? This tells you whether they work with one insurer or can offer quotes from multiple companies.
• Which insurance companies do you represent—and why those? A good agent should explain which carriers they regularly use and why they’re a fit for your situation.
• How long have you been licensed, and what types of insurance do you specialize in? Experience in your specific insurance type (e.g., commercial vs personal, or health vs auto) matters.
• Are you licensed in my state/province, and can I verify it online? Ask to confirm licensing status with your state’s Department of Insurance or your provincial insurance council (e.g., FSRA in Ontario).
• How are you compensated—commission, fees, or both? It’s fair to ask how they get paid, especially for life or investment-linked policies.
• What happens when I need to make a claim—how do you support clients? A reliable agent won’t disappear when things go wrong. Look for clear claim-support steps.
• Will you proactively review my policies each year? The best agents check in about rate changes, coverage updates, and better options over time.
• How do you prefer to communicate—phone, email, in-person, or text? Make sure their communication style matches your preferences.
• Can you give me references or testimonials from clients with similar needs? Especially useful if you have business, property, or high-value needs.
• (For Canadian buyers): Are you a member of any professional associations, like Advocis, IBAC, or a provincial brokers’ association? Membership in professional bodies suggests a commitment to ethics and ongoing education.

These questions help filter agents who are just looking to sell you something fast, versus those who genuinely want to become long-term advisors.

30 questions to ask home insurance agent

Understand Types of Insurance Agents and Brokers

Before choosing an agent, it’s essential to understand the different types of insurance professionals available—especially the difference between captive agents, independent agents, and brokers. Each works a bit differently and may offer access to different products, pricing, or insurers.

1. Captive Agent (also called “exclusive agent”)

Captive agents work for just one insurance company. They can only sell that insurer’s products—even if there may be better options elsewhere.

✅ Pros:

• Deep product knowledge about their company’s offerings.
• Usually have direct claims and service channels.
• 🚫 Cons:
• Limited options—they can’t compare across companies.
• May prioritize fitting you into their product instead of the best overall fit.

2. Independent Insurance Agent

Independent agents work with multiple insurers and can offer policies from various companies. They act as intermediaries but don’t legally represent you (the client).

✅ Pros:

• More choice—can compare plans, prices, and coverages.
• Can pivot if one insurer raises rates or denies coverage.
• 🚫 Cons:
• May still favor insurers they work with more often.

3. Insurance Broker

Brokers (more common in Canada but present in the US as well) are usually licensed to represent the client, not the insurer. Some specialize in life/health, others in property & casualty.

✅ Pros:

• Client-first approach—they legally represent your interests.
• Often used for more complex needs (e.g. commercial, specialty, or bundled coverages).
• 🚫 Cons:
• May charge a fee, depending on the province/state and product.

4. Direct or Online-Only Insurer

Many insurers now sell directly via their websites, apps, or call centers, skipping agents or brokers altogether.

✅ Pros:

• Fast, convenient, often low-cost for simple policies (e.g. auto).
• 🚫 Cons:
• Limited advice or personalization—you’re on your own.

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Step 1 – Clarify Your Insurance Needs

Before contacting any insurance agent or broker, it’s important to take 10–15 minutes to clarify exactly what you need covered. This helps you choose someone who specializes in the right types of insurance—and ensures they’re comparing the right options for your situation.

Start by listing the types of coverage you need:

• Auto insurance – personal vehicle, rideshare, commercial use.
• Homeowners or renters insurance – include condo, landlord, or seasonal property if needed.
• Life insurance – term or permanent.
• Health insurance – individual, family, travel medical.
• Business insurance – liability, professional indemnity, commercial property, etc.

✅ Tip: If you need multiple policies, a broker or independent agent may be better equipped to bundle coverages or find discounts.

Ask yourself:

• Do you prefer to manage everything online, or would you prefer a local agent you can visit or call?
• Is price your top concern, or are you looking for long-term coverage and personal service?
• Do you have special circumstances (e.g. self-employed, high-risk driving history, unique property)?

Step 2 – Verify License, Registration and Credentials

Once you’ve shortlisted a few agents or brokers, your first checkpoint should always be their license and professional standing. Insurance is a regulated industry in both the US and Canada, and only licensed professionals are legally allowed to sell policies.

✅ Why licensing matters:

A licensed insurance agent or broker is:

• Trained in the products they sell
• Required to follow state/provincial regulations
• Bound by ethical codes and continuing education

How to verify licensing:

• United States:
• Visit your state’s Department of Insurance website. Most have searchable public databases where you can confirm if an agent is currently licensed, what lines of insurance they’re approved for (life, health, property, etc.), and if there have been any disciplinary actions.
• Example: NAIC Consumer Resources
• Canada:
• Check with your provincial insurance council or regulator:
  • Ontario: Financial Services Regulatory Authority (FSRA)
  • Alberta: Alberta Insurance Council
  • BC: Insurance Council of BC
  • Quebec: Autorité des marchés financiers (AMF)

Look for extra credentials (especially for life & business insurance):

• US/Canada:
  • CLU (Chartered Life Underwriter) – for advanced life insurance knowledge
  • CFP (Certified Financial Planner) – if you want integrated financial advice
  • CHS (Certified Health Specialist – Canada) – for health/benefits
  • CIC, ARM, CRM – commercial insurance expertise

🧠 Pro Tip: Agents and brokers should be happy to share their license number and credentials. If they hesitate, it’s a red flag.

Step 3 – Research Reputation and Reviews

Even if an agent is licensed and experienced, reputation matters — especially when it comes to responsiveness, clarity, and support during claims.

Ways to check an insurance agent or broker’s reputation:

• Ask people you trust
• Start by asking friends, family, or coworkers if they’ve had positive (or negative) experiences with a particular agent or brokerage.
• Check online reviews
• Look them up on platforms like:
  • Google Reviews
  • Better Business Bureau (BBB) 
  • Yelp or other local directories
• Look beyond just star ratings — read reviews that mention:
  • Responsiveness to calls or emails
  • Helpfulness in explaining policies
  • Support during the claims process
  • Willingness to find the best-fit coverage, not just sell the most expensive policy
• See which insurers they represent
• Reputable agents often work with known and financially strong insurance companies. If an agent mainly works with obscure carriers you’ve never heard of, ask why.
• Check for complaints or disciplinary actions
• In the US, use your state insurance department website.
• In Canada, check with the provincial insurance council for disciplinary records.

🧠 Smart Tip: A great agent is often mentioned by name in reviews — that’s a good sign they’ve made a personal impact.

Step 4 – Compare the Insurers and Products They Offer

Not all insurance agents give you the same range of choices — and what they can offer often depends on whether they’re independent or captive.

Why it matters:

The more options your agent has, the better they can match your budget, coverage needs, and risk profile to the right policy.

What to ask and look for:

• Do they work with multiple insurance companies?
• Independent agents and brokers should offer quotes from multiple insurers, so you can compare prices, deductibles, and coverage levels side by side.
• Which insurers do they place most of their business with?
• This gives insight into their go-to providers — and whether they’re truly offering you a broad view or just a few familiar names.
• Do they explain the differences between products clearly?
• A good agent doesn’t just hand over price quotes. They explain:
  • Coverage limits
  • Exclusions
  • Deductibles
  • Optional add-ons or riders
  • Financial strength ratings of insurers (like AM Best or DBRS)
• Captive agents (e.g., State Farm, Allstate, Desjardins) may only offer one insurer’s policies — but they might offer deeper product knowledge on those options.

Bottom line:

If your needs are more complex — such as insuring a home, car, and business, or if you have past claims — choose someone who can shop around for you, not just quote one brand.

Step 5 – Evaluate Communication Style and Service

Choosing an insurance agent isn’t just about quotes. You’re building a relationship with someone who may support you during claims, policy renewals, or emergencies. That’s why communication style, clarity, and ongoing service matter as much as product knowledge.

Key things to evaluate:

• Responsiveness:
• Do they reply to your calls or emails promptly? Delays during a claim can be costly.
• Clarity in explanations:
• A great agent explains coverage, exclusions, and options in plain English — not just insurance jargon. You should leave conversations feeling more informed, not confused.
• Claims support:
• Ask what role they play during a claim.
  • Do they assist with paperwork or follow-ups?
  • Are they available if the insurer pushes back or delays payout?
• Ongoing service:
• Will they review your policy regularly, alert you to better options at renewal, and keep your coverage aligned with life changes (new car, home, child, etc.)?
• Digital vs. personal preference:
  • Prefer in-person help? Look for a local agent with office hours.
  • Prefer email/text/portal? Choose an agent comfortable with digital communication.

Final tip:

Your insurance agent should feel like a partner — someone proactive, honest, and easy to reach. If they only show up at sale time, that’s a red flag.

Special Notes for Choosing an Insurance Advisor in Canada

If you're in Canada, choosing an insurance advisor involves a few unique considerations. While many of the same principles apply, such as checking licenses and comparing providers, there are specific regulatory and professional markers to look for.

Key Tips for Canadians:

• Verify provincial licensing.
• Insurance advisors must be licensed in your province or territory. For life and health insurance, they must hold a valid LLQP (Life License Qualification Program) certification. For property and casualty insurance, check with your provincial regulator.
• Check professional memberships.
• Look for advisors who are members of recognized industry associations like:
  • Advocis (The Financial Advisors Association of Canada)
  • Insurance Brokers Association of Canada (IBAC)
  • Your provincial brokers’ association
• Choose based on service preference.
• Some Canadians prefer a local, independent broker who understands regional needs, while others opt for bank-affiliated advisors or national online platforms for convenience.
• French-language options: In Quebec and other bilingual regions, many brokers offer service in both English and French — important for clarity in your coverage.

Choosing a licensed, transparent, and accessible advisor is key to long-term peace of mind with your coverage.

FAQs on Choosing an Insurance Agent

Q1. Do I really need an insurance agent, or can I buy online?

You can buy directly online—especially for basic policies like auto or renters insurance—but working with an agent helps when you have complex needs, want personalized advice, or need help during a claim. It’s about how much guidance you want.

Q2. What’s the difference between an insurance agent and an insurance broker?

An agent typically represents one or more insurance companies, while a broker represents you, the client, and can access a wider range of insurers. In Canada, brokers are legally obligated to act in your best interest.

Q3. How do I check if an insurance agent is licensed?

In the U.S., visit your state Department of Insurance website. In Canada, check with your provincial insurance regulator or council. Always verify licensing before sharing personal information.

Q4. Is an independent insurance agent better than a captive agent?

Independent agents offer more choice since they work with multiple insurers. Captive agents can offer deeper expertise in one company’s products. The “better” option depends on your priorities.

Q5. Should I use the same insurance agent for all my policies?

If your agent handles multiple lines (auto, home, life), bundling with them can offer savings and convenience. But make sure they’re licensed and experienced in each area you need.

Closing remarks

Selecting the right insurance agent is more than just finding someone to sell you a policy; it is about establishing a relationship with a professional who understands your unique needs and provides ongoing support. Asking the right questions to a home insurance agent is crucial to ensuring that you make an informed choice.

By considering factors such as specialization, network access, claims assistance, and customer service, you can ensure that you choose an agent who will serve your best interests.

Be vigilant for red flags like misrepresentation, biased advice, and lack of transparency to avoid potential pitfalls. With the right agent, you can secure the best coverage and peace of mind for the future.