Q: Can auto insurance brokers really save me any money, or are they just a scam in the auto insurance industry?

A: Auto insurance brokers can definitely save people money when shopping for car insurance. There are many hard working and reliable automobile insurance brokers out there. The trick is in finding one.

The problem is that, like in any industry, there are some unscrupulous brokers that do not have your best interest at heart.

Brokers will typically collect your information and go about finding you the least expensive insurance they can. Many have negotiated special rates with some companies.

The problem lies when a broker gets paid a steep referral commission by certain companies. When this occurs the their best interests and your own will not coincide.

We always recommend that you get online to compare car insurance quotes and buy coverage. Using the Internet to shop for auto insurance is easy, fast, and very convenient — allowing you to find the best coverage at the cheapest price. In fact, we’ve seen drivers who have saved hundreds and hundreds of dollars a year on their vehicle insurance policies by simply doing some quick online comparisons before making their decision.

Obviously, the easiest thing to do is to jump on the first insurance quote you’re given — but we encourage you to do your research before making a commitment. We’re certain your wallet will thank you for it. Many drivers make the mistake of skipping this all-important step when it comes to shopping for auto insurance, and they end up paying too much for their coverage as a result.

Auto Insurance Broker – What an Auto Insurance Broker Can Do For You

An auto insurance broker is someone who is licensed to sell and underwrite auto insurance policies. The exact requirements to be a broker vary from state to state, but they are basically auto insurance agents with more responsibility.

An auto insurance agent is able to offer you a quote and assist you in other matters regarding your policy. An auto insurance broker can perform these tasks as well, but they are also able to actually write the policy that you are being sold.

Another key difference between an auto insurance agent and an auto insurance broker is that the broker is allowed to have agents work for him and to open their own business. Car insurance agents are not allowed to operate in most states unless they are under the umbrella of an automobile insurance broker.

The last important difference between the broker and the agent is experience. Anyone can be hired to become an automotive insurance agent, but to become a broker takes many years of experience.

The only way to be certain of who you are dealing with is to ask. Some vehicle insurance agents will inform you that you don’t need to speak with the broker and that they can help you with anything you need. If you feel that they are inexperienced or that they are not answering your questions properly you should insist on speaking with the broker however.

There are also auto insurance brokers who specialize in finding less expensive policies, but even the most experienced broker in the world will not be able to beat the quotes that you will be able to obtain online all by yourself.

The reason for this is simple. Even the best auto insurance broker will not be able to eliminate his salary from the quotes he returns to you so you will be paying a portion of that if you use his services. However, if you take a few minutes to shop for a policy online you can eliminate that expense right away. This will result in a less expensive auto insurance policy for you.

Source : Auto Insurance Brokers & Auto Insurance Broker