Nearly everyone knows what car insurance is, and many of us will find ourselves talking to car insurance brokers at some point in time. The question is, what exactly is an auto insurance broker and what do you need to keep in mind when dealing with these individuals?
First and foremost, it’s important to understand the difference between auto insurance brokers and car insurance agents. When you’re buying insurance a broker will represent you, while an agent works for the insurance company he or she is writing policies for.
So does this mean that auto insurance brokers will charge you less than an agent would? The answer to that question is not cut and dry. Agents and brokers both work on a commission basis so they’re going to try to provide you with as much insurance as possible. That being said, a broker will usually work to find you the best possible deal by researching a multitude of companies while an agent will only provide quotes from the company or companies he or she works for.
If you want to get the best insurance rates possible you’ll want to avoid calling just one or two insurance agents. It will be impossible to know whether or not you’re really getting the best rate possible.
Whether you are working with car insurance agents or auto insurance brokers, make sure you do your own research too. The Internet is a great place to research whether or not the rates you’re getting on insurance are the best rates out there.
Remember, a smart consumer is an informed consumer. Make sure you aren’t paying more for your car insurance than you have to. Know what rates are out there and compare them to the rates given to you by the auto insurance brokers and agents you talk to.