Are Auto Insurance Brokers A Good Way to Buy Insurance?
When it comes to buying car insurance, it’s easy to get confused. For example, should you use an insurance agent or a car insurance broker? Ever wonder what is an insurance broker?
An Independent Insurance Broker differs from an agent, in that he or she does not just write policies with one company. They collect your information and submit it to multiple insurance companies on your behalf. They then present you with the insurance possibilities that best meet your needs. A broker works for you, not for the insurance company.
An agent is typically a captive or exclusive agent, who works only for one company. He is a local representative of that company. The service they provide is similar to the brokers; the difference is, the agent is working for the company not for you.
Benefits of using an Insurance Broker
Using an insurance broker is very beneficial for most car insurance buyers. You have a much better chance of finding the best deal or best coverage possible for you because your broker is drawing on a large number of companies on your behalf. In fact, he or she will be able to access certain companies that only sell through brokers or agents giving you more choice than if you contacted companies directly. Because he or she specializes in insurance, they can negotiate on your behalf and present you with different options and recommendations. They will also counsel you on what types of coverage you need and which you don’t.
Brokers or are an excellent choice when you are looking to shop around for the best price; if you have unusual car insurance needs or if you are considered to be a high risk that not every company will want to insure this is a good route.
A broker will have many more options at his disposal than other types of car insurance salespeople.
Additionally, buying directly from the company typically takes longer than using a broker, especially if you are shopping around, as you will have to contact various companies to get a price.
Some auto insurance brokers’ services don’t come for free however, as some do charge a fee for all of their work on your behalf. But as car insurance brokers are paid on a commission for each policy that they sell, they do often times go the extra mile to please their customers. As with any service, do some research on the auto insurance broker you are going to be working with to make sure no complaints have been filed with any state agencies or the Better Business Bureau (BBB).
Get to Know Your Car Insurance Broker
Make sure that you also spend the time to sit and talk with your auto insurance broker so he or she will best understand how to balance your financial budget with your different coverage needs. An understanding auto insurance broker should know what sort of deductible you will want for your different forms of insurance coverage and whether or not you should choose some type of collision and comprehensive auto insurance coverage.
A good auto insurance broker should be just as well trained, if not better trained, than your average auto insurance agent that just works for one specific company. Since auto insurance brokers usually work with a number of agencies, they should also know a lot about the various discounts that are available from different companies, for example, those for good drivers, good students and even for those who have served in the military or graduated from college.
Bundle and Save!
Independent Insurance Brokers sell more than just car insurance. Talk to them about your home or tenant policy, boat or toys and umbrella as well. Bringing all your policies together with the same company will get you a “Multi-Policy” discount and likely save you money.
For more information please call 800-459-6060 or Click Here for quotes.