Insurance Agency versus Insurance Advisors

You would be forgiven for thinking an insurance advisor is the same as an insurance agent.  However, there is a fundamental difference in the way they both operate.  It is essential to be aware of this to ensure you obtain the best possible advice and insurance policy.

If you do not make yourself aware of these key differences then you are highly likely to find yourself paying an excessive amount for your insurance cover:

The Sale

If you are looking to purchase insurance then you are effectively looking for someone to sell you insurance.  This is why you go to the comparison site online or your local insurance agency.  However, there is an important difference.  An insurance agent is effectively an insurance sales person.  Their role is to sell you insurance.  They will provide you with a number of quotes and assist you in selecting the right policy for your needs.  In fact, an insurance agency will often work very hard on your behalf to obtain the right price and cover for you.

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But this is where the issue lies.  An insurance agent is looking to sell you insurance because they will earn money, in the form of commission, from the insurance company.  The rate of commission they will receive can dictate the company they recommend you be insured by.  Whilst it may seem like they have your interests at heart, it is possible they are more interested in their own!

In contrast an insurance advisor is not trying to sell you any insurance.  In fact, you will still need to see an insurance agent or go directly to the insurance company once you have decided which policy is right for you.  The role of the advisor is simply to look at all the options available to you and help you to choose the best policy for your needs, finances and current position.  Their only concern is finding the best deal for you.

Dealing with an Insurance Agency

Although the insurance advisor will provide you completely independent advice, you are best to visit an insurance agency to take out the policy your advisor has recommended.  This is because there is a good chance that when you need to make a claim on your policy, your advisor will no longer be in business.  However, the insurance agency should be and will be able to help you claim and get what is rightfully yours.

You are also likely to find that an advisor will cover all types of insurance advice.  This means they have a general knowledge of the policies and procedures; the insurance agency will know far more detail and are likely to be a better option if you are looking for specialist cover.


The key difference between an advisor and an agent is that one is interested in what is best for you whilst the other is interested in what is best for themselves.  Of course, these two factors do cross over and move around according to which quotes and advice are being sought.  The best approach is, therefore, to use both services.  This will help to ensure you have independent advice and the best possible cover.

Clarissa Cooke

Clarissa Cooke