When you’re shopping around for the best car insurance rates, it’s easy to overlook some great deals and rates available from some of today’s leading insurance companies. Many people choose to work with a car insurance broker instead of shopping on their own because the broker has access to several insurance providers and can negotiate a great rate based on your driving history, budget and insurance coverage needs.
There are several benefits and drawbacks to working with a car insurance broker. Consider the pros and cons of working with a broker so that you can make the most informed decision.
Pros of Using a Car Insurance Broker
Car insurance brokers are trained to work with several insurance providers and to negotiate the best rates for each client. They will need to review your driving record, past insurance coverage history, marital status and other personal information to present your application to different insurance providers. Most will require you to fill out a single application, which can then be forwarded to several insurance carriers.
If you decide to shop for car insurance on your own, you will need to gather all of this information yourself and could spend weeks communicating with different insurance companies and requesting rates. A car insurance broker will ultimately speed up the search process and can also help to secure the lowest available rates on all types of insurance policies.
Some of the key benefits of using a car insurance broker include:
– Advice on the best coverage levels for your particular vehicle and needs
– Rates from dozens of auto insurance companies so that you can compare several options
– File a single application that can be submitted to multiple providers
Cons of Using a Car Insurance Broker
Working with a car insurance broker affords a number of benefits, but there are some drawbacks to keep in mind. Some of the cons of using a car insurance broker include:
– Broker fees for services can be high
– Brokers make money from referrals, so you may feel pressured to purchase a certain policy because the broker’s
referral fee will be higher
– There is less personalized customer service if you are working with an online broker
– If online, the broker may not be able to respond to all of your questions immediately
An online or offline car insurance broker can help you find a great auto insurance package and negotiate the rates on your behalf, but the fee for their services can be high. Consider these pros and cons of using a car insurance broker so that you can make the most informed decision.
“Pros and Cons of Auto Insurance Brokers,” CarsDirect.com.
“Should I Use an Auto Insurance Broker?” Find Car Insurance Now.