As Hercaclitus once said, “everything changes and nothing stands still.” Your life is constantly in flux, always changing, and it is important that your insurance policy reflects your ever-changing needs. Whether you are making a big move to another province, or you are simply putting a car in storage. But, how do you go about making changes to your policy? Do you need to contact your insurer directly, or is this something your broker can handle? Before diving into whom to contact about policy changes, let’s take a look at what is it that your insurer and your broker do for you, this way we can understand the difference between the two.
Your insurer is the one who is underwriting and facilitating your insurance policy. It is your insurer who determines your coverage and how much your premiums will cost. They also handle any claims you put through, and determine how much compensation you will receive.
An insurance broker acts as a middleman between you and the insurer. A broker sells you your policy and handles any business between you and your insurance company. They are there to answer your questions, assist you with any work you may need done regarding your policy, and help you submit any claims you need to put forth.
Your broker works for you, but you do not have to pay to use their services. The insurance company that you decide to go with is the one who pays the broker. And while this may seem like a good way to get you to opt for a more expensive policy to make a higher commission, there is no worry of that. Insurance brokers have a duty to put their clients best interests first. A broker must approach the sale in a fair and unbiased way, or else risk being reported and losing their licence.
So, after taking into account the roles that your insurer and your broker play regarding your insurance policy we can answer the question as to whom you should contact in the event that you need to make a change to your policy. Since your broker acts as a liaison between you and your insurance company, it is best to speak to your broker and allow them to make the changes you need. Explain to the broker your changes, and they will be able to advise you on your options moving forward, and inact your changes.
The new year is a great time to have a look at your policy and determine if any changes should be made. Reevaluating your coverage at least once a year can help keep your policy from becoming stale, ensuring you have the proper coverage for your ever-changing life, and possibly saving you money.