Posted August 8, 2012
Charmayne Smith, Researcher
Selecting Car Insurance Brokers
Car insurance brokers are personal insurance shoppers that can quote insurance rates from more than one carrier and sell the rate you choose. As car insurance brokers, the individuals are not bound to one insurance carrier and sell as many different carrier options as their car insurance brokers licensing will allow.
Car Insurance Brokers vs. Insurance Agents
Identifying the difference between car insurance brokers and insurance agents is not always a simple task. Car insurance brokers have many similarities to insurance agents with just a few differences. Car insurance brokers are licensed insurance contractors, not employees or owner operators of insurance companies. As such, car insurance brokers work for their customers’ best interest rather than the interest of insurance companies. Non-captive insurance agents may appear to be car insurance brokers and there’s an even smaller difference between car insurance brokers and non-captive insurance agents. . Non-captive insurance agents can sell multiple insurance carriers just like car insurance brokers, but non-captive agents are still bound to their insurance companies.
What’s the Difference?
Most of the differences between car insurance brokers and insurance agents lie in the contractual paperwork that car insurance brokers and insurance agents sign with their insurance companies. The biggest visible factors that differentiate car insurance brokers from their agent counterparts are the service feature. Car insurance brokers can recommend a customer to change to another policy midterm to better fit the customer needs, unlike insurance agents which should never recommend a midterm policy cancellation. Car insurance brokers also charge a fee for their services. This car insurance brokers’ fee may be charged directly to the customer or generated through the commissions earned from the policy sale.
How to Choose Car Insurance Brokers
Choosing car insurance brokers is similar to choosing insurance agents. You choose car insurance brokers based on the carriers they offer, their location and availability to meet your needs. As customers to car insurance brokers, you can change your car insurance brokers at any time and are only obligated to pay for the services you have used.
Car insurance brokers are most visible online. Car insurance brokers often use online insurance applications to provide multiple insurance rates with one completed application. Like agents, car insurance brokers are required to keep your information confidential and as licensed representatives, car insurance brokers are bound to state laws, regulations and licensing requirements.