THE RIGHT AUTO INSURANCE BROKER

One of the most important considerations when choosing an auto insurance broker is to find out what carriers the broker represents.

In other words, what insurance companies does he or she have a relationship with? A good insurance broker will work with a number of various, reputable insurance companies.

You should understand the important difference between a captive agent and an independent broker. Remember, a captive agent works for one insurance company and is only able to sell that one insurance company’s products.

While they may work for a great company, they are still limited in the products they have to offer and the prices their policies are set at. Captive agents are also loyal to the results for their particular insurance company and not necessarily what might be better for you as a customer.

On the other hand, independent brokers can have relationships with many different insurance companies, allowing them access to dozens of different policies and coverage options at varying premiums. This always gives you an advantage as a customer and allows the broker to be in your corner, putting your needs ahead of any insurance company.

Before I was an independent broker, I worked for a single insurance company. I was often frustrated that I couldn’t offer my clients better options that fit their needs and budgets. I was always constrained by the products my company had at the prices they set.

My hands felt tied and didn’t feel good about signing clients when I knew they could get better options somewhere else. That is exactly why I chose to become an independent broker and why I think it makes the most sense for you when you are choosing an auto insurance broker.

If you decide to choose an independent broker, keep in mind that only the most responsible and fiscally-sound brokers get contracts with the best carriers. The best insurance companies work with brokers they trust.

So take a look at the companies your broker works with and make sure that the broker you are considering works with A-rated carriers. You can investigate carriers and their financial stability ratings on credit rating websites like Standard and Poor’s and A.M. Best.

Because of social media and the internet, there is so much transparency for consumers to be able to learn about their broker before they hire them. Before you make a decision about hiring your broker, check out the feedback they have received from other customers.

You should be able to easily access and research other people’s experiences with your potential agent or broker.

Go online and read reviews and testimonials. You can simply google the broker’s name and agency. Have they faced any lawsuits? Are there any news articles about them?

Most importantly, read their reviews. Any legitimate broker or agency will have lots of reviews from their customers.

Don’t get distracted by a few rogue reviews. In any business, there are always customers who are dissatisfied, but it’s just good to notice the overall rating of the broker and their agency.

What is the general consensus? Are the majority of the reviews positive? This person will be your partner in protecting you and your car and you want to choose someone that is trustworthy and responsive to their customers.

While you are online, look at their website. Is it professional? Read their blogs or watch any informational videos they provide. Do they provide helpful content for their clients? Do they include testimonials from others? You can also look at their social media pages (Facebook, LinkedIn, Google+, Twitter, Instagram) for more reviews and content.

Everyone who sells insurance products needs a license.

These requirements vary from state to state, but most states require that brokers not only have a license but also earn continuing education requirements in order to sell or service insurance.

Again, reputable insurance companies will not do business with unlicensed brokers. If you want the best protection with the best companies you will only want to work with licensed brokers. The whole point of having auto insurance is to mitigate your risks and protect you financially. Don’t put yourself at risk by working with someone who doesn’t have the proper licensing and credentialing.

Additionally, other good things to check on is their experience in the insurance industry and their education and training.

One way to evaluate a broker is to ask them for a quote before you become their client. This will help you accurately understand what it would be like to work with them. You will be able to see firsthand the carriers they work with, how well they know their industry and understand your needs, and how thorough they are in giving you auto policy options.

This experience alone will speak volumes about how the broker works and what you can expect. In order to get a competitive quote, a broker has to gather relevant underwriting information, which will allow you to assess the following questions:

Think about your experience with the broker to decide if you would enjoy a long-term relationship with them.

Obviously, the most important part of having insurance comes when you have to use it to resolve a claim.

When it comes to choosing a good auto insurance broker, filing a claim is where the rubber meets the road. (Pun intended!)

As I said before, your agent is your advocate and will act as a liaison between you and your carrier. Simply put, the better the broker is at handling the claims process, the better experience you will have.

Find out the broker’s procedures for servicing any claims. For example, does the agency have dedicated people handling claims or will your broker be the one to help you through the process?

Additionally, a good broker will know about the responsiveness to claims for all the carriers they work with. They will understand which companies efficiently settle claims which carriers are harder to work with. Before you buy a policy, they can let you know what to expect from the carrier you have chosen.

Keep in mind that every insurance company has different requirements when it comes to filing a claim. In some cases, if you don’t meet these requirements or timelines, it will lead to delays or denials in claims.

You want to choose a broker that is an expert at the companies he or she represent. They need to be familiar with the various requirements of each carrier in order to help you successfully navigate the claims process.

This goes back to choosing a broker who truly understands the insurance industry and players in it. Again, this comes down to experience and training. Good brokers know the carriers and how to manage their claims processes.

After you buy an auto insurance policy, it is not unusual for a broker to turn a client over to an account manager in their agency who will continue to service your insurance needs.

When you are choosing your auto insurance broker, make sure you know how their agency handles customers and make sure you are comfortable with their procedures.

Ask your broker about how they handle their accounts and make sure you are okay with them. Will you always work with the same agent? Who will you contact when you have a concern? Knowing this ahead of time will help you avoid surprises.

Over the course of your life your auto insurance coverage needs are likely to change from time to time. You will have changes in coverage needs and you need to know that your agency can meet these needs and requests and respond quickly and efficiently for you, much like the client I mentioned at the beginning of this article.

You want to choose a broker and an agent that has an organized process for handling client accounts so you know who to contact when you have a problem, a claim, or need to make a change in your policy.