Insurance Agent vs Insurance Broker, What’s the Difference?

May 23, 2014

Insurance agents and brokers are oftentimes referred to as the same thing by the general public when in fact there are some very disctinct difference between the two and here are just a few.


According to the California Insurance Code an agent is defined as “a person authorized by and on behalf of an insurer to transact all classes of insurance other than lif insurance.”  The same California Insurance Code states that an insurance broker is “a person who, for compensation and on behalf of another person transacts insurance other than life with but not on behalf of an insurer.”


Insurance Brokers may charge a fee.

Insurance Agents may not charge a fee.


Agents are licensed professionals with a contract with one or more insurance carriers.  An agent represents the insurance company they are contracted with for the purpose of selling that company’s insurance products and can only sell products of said company.


A broker is not the employee of any insurance company; they represent the customer and thus provide the information necessary to quote to multiple insurance carriers in search of the best coverage.



Kelly Spies

Executive Edge Insurance Services

320 E Yosemite Ave Ste 101

Merced, Ca 95340


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