Big Brokerages Do NOT Have Better Buying Power
When it comes to buying insurance, many people think that big brokerages have the best rates just because they’re larger. The idea is that the bigger the agency, the better the buying power and lower the prices. But this isn’t true.
The Truth About Insurance Pricing
Insurance pricing isn’t just about how big the agency is. There are strict rules that insurance companies must follow when setting prices. Whether you go with a massive agency or a small, local one, the cost of coverage based on the same information has to be the same. So, just because you’re with a big brokerage doesn’t mean you’re getting a better deal.
What Really Matters: Experience and Service
If price isn’t the key factor, what is? The real difference comes down to experience and service. Here are a few reasons why smaller agencies can be better for you:
- Personal Touch: Smaller agencies often focus on building personal relationships with their clients. This means you’re more likely to get to know your insurance agent, who can provide solutions that fit your specific needs.
- Attention to Detail: Smaller agencies can pay more attention to each client. This means they can really look at your situation and customize your coverage to suit you.
- Helpful Guidance: Many smaller agencies take the time to help you understand your options. They’re there to answer your questions and give you advice that works best for you.
- Trust and Openness: With a smaller agency, you often have a direct line to the person handling your insurance. This can make it easier to communicate and get help when you need it, especially during claims or if you have any concerns.
Finding the Right Agency for You
Choosing the right insurance agency is about what’s important to you. Do you prefer the personal, caring service of a smaller agency, or are you comfortable with a big brokerage?
Just remember that a larger agency doesn’t automatically mean better prices or coverage. Take some time to look at what both types of agencies offer. Think about what kind of experience you want when dealing with your insurance.
In the end, size doesn’t guarantee better buying power. The best choice is the one that feels right for you.
Learn More About Apex
Apex was founded to fill the service and consultative gap left by agency consolidations in the insurance marketplace. These consolidations have left customers who are used to a boutique service approach with no personal connection to their team.
Apex brings the high-touch service proposition back to San Diego businesses and beyond.
At Apex Risk & Insurance Services, we use the Apex Proven Process to learn about your business, strategize to assemble the right program for you, and use our deep industry and market knowledge to leverage the best pricing and coverage.
This leaves small business owners with more time to do what they do best: Run their business knowing that their company and employees are protected.
Check out our commercial insurance policies, then, read on to learn what makes us different.