Why You May Not Be Getting the Best Deal from Your Broker

Health Broker

Insurance feels like a necessary evil. If you do not have insurance and catastrophe strikes, you may find yourself in financial trouble or in a bind with the law. Consumers either have to invest time into finding their own insurance coverage or need to consult an insurance broker for assistance with the task.

What are Brokers?

An insurance broker is a type of independent, commissioned sales person. That sales commission can be an extremely motivating factor preventing your broker from providing you with the best deal possible. The broker has agreements with a multitude of insurance providers that allows them to sell a variety of policies.

Although many customers rely on insurance brokers to find them the best deals on their home insurance rates or auto insurance rates, it is not guaranteed to happen.

How to Find the Best Broker

However, based on your personal circumstance, insurance brokers can save you a fortune. After moving from New York to California, one gentleman rudely discovered that as a licensed driver with less than three years of experience, his relocation forced his auto insurance to go through the roof. Out of panic, he contacted an insurance broker to handle the task. She wisely separated the auto and home insurance and sought the lowest independent rates on each. Her efforts resulted in a savings of over $3,000 for her client.

If you are in need of new auto insurance or home insurance and plan on using a broker, there are several things you need to do before signing on the dotted line:

  • Free Market Competition: Contacting several brokers and letting them know your needs will provide you with several offers from which you can pick and choose.
  • Who Are You?: You need to ask your potential insurance broker his or relationship to the insurance issuer. Although you may think you found a great broker, they may just be an insurance agent for one product line.
  • Price Comparison: Whether your broker suggests that you buy home and auto insurance coverage through two companies or one, make sure to ask them to present you with price quotes for both so you can determine your best savings option.
  • Credentials: If you are selecting to use an insurance broker, it is because you want to tap into their expertise. Feel free to ask them to back it up with years of experience, professional affiliations and even their educational background.
  • Get it in Writing: If your broker has a proposal for your consideration, make sure that they put it the insurance quote writing so you can review.

When it comes to finding affordable and decent insurance coverage, the task may feel overwhelming. Regardless of whether you are buying homeowners insurance or auto insurance there are several ways to go about the task. Sometimes you do not know the best way to proceed until you start your search. But if you find you are hitting a dead end, an insurance broker may be able to throw you a lifeline.