What is a Car Insurance Broker?

If you are new to the world of automotive insurance, you might not realize that there is a difference between an insurance agent and a car insurance broker.  However, these two professions are actually very different, and it is entirely possible that you might benefit from having both an agent and a broker.

The Difference Between an Auto Agent and a Car Insurance Broker

The main difference between an agent and a broker is that an agent represents the insurance agency, whereas a car insurance broker represents you.  A broker is a go-between who can represent you to your agency.  He or she knows the insurance laws and is responsible for getting the best deal for you, whereas the agent is responsible for saving money for his or her firm.

Do I Need a Car Insurance Broker?

There are many advantages to having your own car insurance broker.  If you get into an accident, have a question, or need to make a change to your policy, you do not have to deal with the insurance agencies directly; instead, you turn to your broker and he or she handles the transactions for you.

With your car insurance broker’s experience, you may be able to find better deals and get higher insurance settlements than if you handle the transactions yourself.  A broker can also help you avoid scams, agencies with poor customer service, and other auto insurance pitfalls.

The disadvantage of using a car insurance broker is that you run the risk of dealing with brokers who don’t do their jobs well, or that puts their interests above your own.  For example, some brokers recommend auto insurance agencies that pay them high commissions over policies that could save you money, or they are slow in processing payments or answering your questions.

How to Pick a Good Car Insurance Broker

If you decide to go with a car insurance broker, do some legwork before you make your decision about who to hire.  Find out how long they have been in business and whether they have any complaints against them with the Better Business Bureau or other watchdog agencies.  Ask for customer testimonials, and see if you can find any customer reviews online.  Ask your friends and family members if they can offer you any recommendations.  Also, don’t discount your gut feeling – if you feel like you are not being heard or treated well, find another car insurance broker immediately.

As with any other kind of service industry, car insurance brokers can provide fantastic or horrible service.  By shopping around, you should be able to find a broker that can save you money and make your life much easier.