Working With Car Insurance Brokers

A car insurance broker is an individual whose job it is to negotiate with insurance companies on your behalf to secure good car insurance policies or get you more favorable terms for the existing policy. Most of them draw on long experience in the auto insurance industry and will bend over backwards to make sure that you secure the best possible deal on your car insurance policy and are satisfied with their services enough to keep coming back to them whenever the policy needs to be renewed. 

There are however a few rogue car insurance brokers who are likely to steer you wrong. Whether it’s out of self-interest, lack of knowledge or outright malice, there are several reasons why you should not simply accept a car insurance broker’s advice blindly.

Pushing Unnecessary Extras  - While many car insurance brokers work on a flat fee basis there are those that also work on commission. If they do bolster their own finances with commission payments then they have a good incentive to sell clients on an insurance policy that is perhaps more expensive than it needs to be to be comprehensive. Having good car insurance is essential but paying for more coverage than you actually need is silly.

Numbers  Manipulation – In order to get a client to sign up for a certain insurance policy (that the car insurance broker is probably getting a commission on) they present a great rate but fail to mention that it is a promotional or “teaser” rate and the amounts will increase significantly a few months down the line.

Real Bad Guys – In a few unfortunate circumstances consumers have encountered (and been burned by) car insurance brokers who are just out and out bad guys. Some of these unscrupulous people have been caught collecting money from clients to cover insurance rates that they have significantly inflated because they intended to pocket the difference themselves. Others have been caught working for a certain insurance company and unfairly steering all the business their way while leading their clients to believe they are independent brokers.

Working with a car insurance broker can indeed be a great way to ensure that you get the best possible deal on your car insurance. Who really has the time to wade through a mountain of insurance quotes and spend hours on the phone trying to negotiate a better deal? A car insurance broker can do all of that for you. All you have to do is make sure the individual you are working with is reputable.

Asking around amongst your family, friends and colleagues is a good way to find a car insurance broker you can trust. Many people work with the same broker for years after they have found one they like and will usually be happy to recommend them to their acquaintances. If no one seems to be able to suggest anybody for you though at least do a little bit of credential checking yourself. How long have they been business? What is their experience in the car insurance industry? Do they have references from other satisfied clients? These are just a few of the questions you should be asking before you part with a penny of your hard earned cash.