Final answer:
Insurance agents work for specific insurance companies and represent their interests, while insurance brokers work independently and represent the interests of the customer. Agents sell policies from their company, while brokers compare policies from different companies to help the customer make an informed decision.
Step-by-step explanation:
Insurance agents work for specific insurance companies and represent the interests of those companies. They sell insurance policies directly to customers and provide information about the company's products. They are authorized to bind coverage and often have quotas to meet.
Insurance brokers, on the other hand, work independently and represent the interests of the customer. They do not work for any specific insurance company and are not tied to selling a particular company's policies. Instead, they work on behalf of the customer to find the best policy from various insurance companies.
For example, if a person wants to buy car insurance, they can approach an insurance agent who works for one specific insurance company. The agent will offer policies from that company, and the person can choose a policy that suits their needs. However, if the person wants to compare policies from different insurance companies, they can approach an insurance broker who will gather quotes from various companies and help the person make an informed decision.