Should You Work with a Local Insurance Broker?
There were nearly 6,000 insurance companies in the United States in 2016, says the National Association of Insurance. Many of these companies specialize in auto insurance, which is a legal requirement almost everywhere in the US. However, with so many insurers on the market, it can be difficult to know where to start.
This is where a local auto insurance broker comes in. A broker will search for the best financial products on the market for you, so you can concentrate on far more important things. This way, you can save money on your insurance and find a policy that suits your budget and lifestyle.
But should you work with an auto insurance broker? Is it worth the hassle? And the extra expense? Read on to find out.
What is an Auto Insurance Broker?
A local auto insurance broker uses his or her knowledge to find the best auto insurance deals and rates on the local market, based on your personal circumstances. Usually, a broker is independent and doesn't work for a particular company. This means he or she remains impartial when selling you insurance. In short, a broker acts as an intermediary between you and an insurance provider.
Many people confuse auto insurance brokers with auto insurance agents, but these are two very different job roles. While both will try and find you the best insurance deals, auto insurance brokers work on behalf of you, the consumer. Auto insurance agents, on the other hand, work for insurance providers.
Auto insurance brokers are becoming increasingly popular in the US, and it's not hard to see why. There are around 272 million registered vehicles in the country, and all drivers need insurance.
How Can an Auto Insurance Broker Help You?
Type in "auto insurance" in Google, and you'll get hundreds of thousands of results. Researching all the various companies, policies, and premiums could take you days, and if your insurance is up for renewal, you might not have the time.
Imagine if someone could do all the hard work for you. Imagine if someone could find you the best insurance deals without you lifting a finger.
This is what a local auto insurance broker does.
A broker will take a look at your credit report, current and existing insurance policies and premiums, and personal circumstances and determine the best type of auto insurance for you.
Most brokers will consider insurance packages from large multinational corporations, as well as smaller providers in your area. This way, you can save a lot of money.
Sure, you could search for auto insurance yourself, and it won't cost you as much. (Brokers charge commission rates for finding you the best deal.) However, you could still save more money in the long run, especially if a broker finds you a premium that saves you hundreds (or even thousands) of dollars a year.
Remember, auto insurance brokers need to give you full disclosure about their rates, and how these rates impact your insurance premiums.
How to Find the Best Auto Insurance Broker
Not all local auto insurance brokers are the same. You need to find a professional with the right skills and experience. This can be difficult. Just like the vast number of auto insurance products on the market, there are a lot of brokers to choose from. In fact, there were around 1.1 million insurance brokers, agents, and service employees in the US in 2017.
- Start by asking friends and family for personal recommendations. If someone you know has had a good experience with a broker in the past, do some more research.
- Next, contact a few auto insurance brokers online and find out about the services they offer. Some brokers can find you specialist insurance products, for example, such as insurance policies for large trucks or RV vehicles.
Combine an Auto Insurance Broker with a Comparison Shopping Tool
Some people think that local auto insurance brokers are human comparison shopping tools. However, this couldn't be further from the truth. Sure, comparison shopping tools compare and contrast different auto insurance products on the market, just like brokers, but these sites allow you to find the best deals 24 hours a day, seven days a week.
Using a local insurance broker, on the other hand, can be a long process, and you might have to provide lots of information about your personal circumstances before a broker finds you the best insurance deals.
It's a good idea, therefore, to use both. Combining a comparison shopping tool like autoinsurance.com with an auto insurance broker will provide you with the best results. You'll be able to save more money on your insurance premiums and find providers that give you the most bang for your buck.
If you don't have hours to search the internet for auto insurance, using a local broker can solve your problems. Auto insurance brokers will provide you with expert guidance when it comes to vehicle insurance, saving you time and money. Combine an auto insurance broker with a comparison shopping tool for even more cost savings.
Looking for the best auto insurance rates on the internet? Click here to check out autoinsurance.com.