An insurance salesperson is no longer the only way to purchase a policy. Technology and competition have streamlined the insurance-buying process. That said, whoever sells your policy must have an insurance licence to sell you an insurance product.
For this article, our team reviewed FSRA’s general-agent licensing page and public agent register, plus RIBO’s brokerage search and consumer conduct sheet.
Online platforms make it easy to enter information, receive quotes and compare coverage options. Not every platform sells insurance, so check who you are dealing with if you want to buy through one.
Do You Need an Insurance Agent to Buy Car Insurance?
No. You can buy car insurance online, directly from an insurer, through an agent or through a broker. What matters is that the person or business arranging your coverage is properly licensed.
Agents and brokers can have different roles, so it helps to understand who they represent:
- Agent: In Ontario, a general insurance agent is licensed by FSRA and sponsored by an insurer. Ask which insurer the agent represents.
- Broker: A registered broker can help you compare and arrange coverage from the insurers they work with. Brokers may also provide advice or claims support.
- Online platform: An online platform can help you provide information, compare options or start the buying process, but the platform itself isn’t necessarily the licensed professional arranging the policy.
Read More: Understand the Difference Between an Insurance Broker and Agent
Is Buying Insurance From an Insurance Agent Worth It?
Whether an agent is worth using depends on how complicated your insurance needs are, which insurers they can access and how clearly they explain their recommendations. Compare the service, coverage and price rather than assuming one channel is always better.
Questions to Ask Before Buying
Whether you’re purchasing insurance online, over the phone or in person, you should know who you’re dealing with.
- What is your legal name, licence or registration number, and regulator? Verify an Ontario agent in the FSRA register or an Ontario broker or brokerage through RIBO’s public search.
- Are you acting on behalf of the insurance company or me? Agents are sponsored by an insurer, while brokers may be able to offer policies from several insurers.
- Will you provide me with advice? Both agents and brokers can provide advice and support. Ask what services they provide.
- Are your quotes comparable? Confirm that all quotes include the same coverage and deductible amounts, optional coverages, drivers, vehicles and usage.
- How are you compensated? Some agents and brokers receive compensation from insurers for placing business with them. Ask about compensation and possible conflicts of interest.
- Who will service my insurance after I buy it? Find out who will manage policy changes, answer renewal questions and help when you submit a claim.
When Advice Is Especially Valuable
You may prefer human assistance when:
- Your policy was recently cancelled or lapsed.
- You want to insure several vehicles or drivers on the same policy.
- Your vehicle is used for business.
- You need additional endorsements.
- You have several claims.
Choosing an Agent or Broker
Ask how the seller compares coverage, documents recommendations and helps after the sale. A clear answer should identify important limits and exclusions, not only the price.
Choose someone who communicates clearly and makes you feel comfortable discussing your needs. They should be clear about costs, coverage options and important limitations.
Red Flags to Watch Out For
If anyone asks for payment by gift card or a deposit to a personal bank account, hang up.
- Make sure the agent or broker is licensed. You can check the FSRA or RIBO websites.
- A quote that is significantly lower than others could be missing information, incomplete or illegitimate.
- If someone encourages you to lie about your address, vehicle use, driving record or drivers, don’t proceed.
- A quote is not proof of coverage. Get proof of insurance from a legitimate agent, broker or insurer.
Read More: See How Often to Compare Car Insurance Rates