The Role of Your Insurance Broker
Having worked as an underwriter, which for those that don’t know, is the person at the insurance company who either denies or approves your application for insurance, I had the chance to work with all kinds of brokers. What struck me most about insurance brokers is that the majority of them do not fully explain to their clients their role in the insurance buying process. This ultimately created a lot of confusion in the minds of our insureds as they were not sure who to turn to when they had a problem. In fact, many told me, that their insurance broker had told them to call the insurance company (i.e. Me). Anyway, your insurance broker fulfills one important role and one you should look for in finding an insurance broker.
1. Your Insurance Broker is Your Customer Service
Many are unaware that your insurance broker is receiving a commission for selling you insurance. From my experience, many insureds believe their insurance broker actually works for the insurance company. This is far from the case. Your insurance broker works for an independent business, called an insurance brokerage, whose job it is to find you insurance from the insurance company. Now many of you will say, but why does this middleman exist?
The reason insurance brokers exist is because their job is take your details and the object you want to insure and place it with an insurance company they are licensed to do business with. Most insurance brokerages will have contracts with 20 to 30 insurance companies and will have to figure out using their quoting software which insurance company will accept you. Simply put, they enter your information into their quoting tool and it will spit out insurance quotes from each insurance company. Some insurance companies will not accept you, others will. Some will charge very high to insure you and if your luck some will charge you a fair price.
The most important role for your insurance broker is that they actually care to review your policy with you every year so that they can do a new quote for you and compare insurance quotes. This will ensure you are always getting a fair price for your insurance. Before going with any insurance broker have a chat with them and see how friendly they are and if they are really going to car about you for as long as you plan to insure whatever it is your insuring, because thats how long they will be getting a commission from you.
You can, of course, take matters into your own hands and compare auto insurance quotes online from our site Get-InsuranceQuotes.com. All insurance quotes are free and you have no obligation to buy.
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