If you are looking to purchase a new auto insurance policy, you may be thinking about working with a car insurance broker rather than an insurance agent. An insurance agent works for one insurance company, giving you quotes for the company they work for. A car insurance broker does not work for an insurance company. Instead, they are paid on a commission basis by many insurance companies for the policies they sell. Learning the advantages and disadvantages of working with this type of professional can tell you if it is best for your needs.
The Cons of Working with a Car Insurance Broker
- They May Charge You a Fee
One of the downsides to working with a car insurance broker is that they may charge you a fee for their services. In some cases, they get a commission from an insurance company for selling one of their products. In other cases, they charge customers, such as yourself, a fee to find them the best product. If you are budget-minded, you may be put off by paying a fee.
- They Can't Help With Accidents
The other disadvantage of working with a car insurance broker is that what they can do for you can be limited. A car insurance broker can help you find an auto insurance policy and renew that policy. But they can't help you with filing a claim or acceptance or denials regarding car accidents. Only an insurance agent can help you with that.
The Pros of Working With a Car Insurance Broker
- They Can Help You Find the Best Policy for You
One of the upsides to working with a car insurance broker is that they can help you find the best policy for you. An insurance agent can only help you find the best policy within their company. This may not be the best product out there among all companies. A car insurance broker works with a variety of companies, helping you to find the policy that best meets your needs.
- They Can Compare Policies for You
The other advantage to working with a car insurance broker is that they can help you compare products among a variety of companies. While you can often compare policies among different companies yourself, this can be time consuming and overwhelming. A car insurance broker can compare products from different companies for you, helping you to save time and money.
If you are looking to purchase a new auto insurance policy and you are loyal to one insurance company, working with an insurance agent may be the best option for you. On the other hand, if you are looking for a new policy and want the cheapest or best policy, regardless of company, a car insurance broker may be able to help you find the best company and deal for you.