Auto Insurance Broker – The Benefits of Having One

Purchasing your car insurance through the use of a broker does have some benefits. There are some things however that you should be aware of and need to keep in mind when buying your car insurance through an insurance brokerage

An insurance broker will have access to a lot of different auto insurance companies. Going directly to one insurance company could restrict your options and you may not get the coverage you want the broker on the other hand having so many to choose from should be able to get you the coverage you want and at a price you will like.

When you visit a brokers office they are able to look at all the different aspects of coverage that you need. They will then need to know things such as how long you have held a license, your driving history, and the type of vehicle you want insurance for; this is known as rating information. All of this information is then fed into a computer and the broker is then able to see what quotations the computer has generated from the probable dozens that will be showing.

The agent can then sort through these and narrow it down to maybe two or three for you to make the final choice from depending which of those fully meet your requirements. If you went straight to an insurance company, you would be limited to what that company could offer and it’s possible they may not be in a position to fully cover you. This is why it’s always better to use an independent broker they have a lot more scope in which to work.

There is one drawback to using a broker though even though they can offer so many other benefits they do tend to have fees attached to their services. These fees are completely legal as long as they disclose them to you at the beginning and they can always be negotiated. Never pay more than you feel is reasonable. If the coverage you are looking for is a complicated matter then, it is going to take the agent longer to figure things out for you so, the more time spent on getting the right policy, the higher the broker’s fees are likely to be. The normal fees for a broker is around $50 to $150 but as already stated, if the policy is complicated then expect to pay more.

If you should want to make changes to your policy once it is in place then the broker will most likely make additional charges for the extra work involved in this. This can be anything from $25 up to $100 again negotiable.

If you’re simply renewing an existing policy then any charge made by the broker should only be minimal do not let a broker talk you into making a completely new policy as all the above fees will come into play again.

There are plenty of insurance brokers to choose from and insurance is a very competitive industry so shop around before you make any final decisions and get the best deal you can.

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