Auto Insurance Brokers
If you are shopping around for auto insurance you can buy it in a number of ways - you can opt for auto insurance brokers, work direct through an insurance company via exclusive agents or sales representatives. You can even go the online route and buy your insurance via the World Wide Web.
So what is the difference between each channel, and is one preferable to the other when you are looking for a quality, affordable auto insurance package? Many people choose to buy their insurance packages using auto insurance brokers. An auto insurance broker is an individual that is qualified to 'broker' insurance policies to consumers.
In order to practice in this field, auto insurance brokers need to pass licensing examinations given by the Insurance Department. This means they are trained in insurance rules, policies and practices.
While auto insurance agents need to pass the same licensing examinations as auto insurance brokers they perform a different function. While a broker will find deals from many different insurance companies and represents the consumer, an agent will typically sell insurance from one or more insurers whom they represent. But both agents and brokers can provide consumers with information about auto insurance and getting the best protection.
Both auto insurance brokers and agents will be able to help you to settle a claim if you are involved in an accident. If you are denied access by any insurance company ask them to explain why. If you do obtain coverage always make sure you know if your coverage is on a voluntary or residual market basis. Make sure you know which company you are signing with and get a breakdown of your coverage including deductibles and premiums. Your broker should itemize the quote for you.
So what's in it for auto insurance brokers? Brokers receive money in the form of a commission from the insurer. They are not allowed to charge you a fee for their service unless you are in agreement and the amount and service provided is specified in writing.
No matter whom you choose to help you buy your insurance you should always shop around to find the best deal. Auto insurance brokers do, however, know the industry well and have valuable contacts with top insurance companies. In this position of relative power they may be able to get you a better deal.
