• The Roles of Auto Insurance Brokers, Agents and Underwriters

    Auto insurance brokers and agents are two very different professionals. Essentially, an auto insurance agent is a representative of an insurance company. They might be a franchise owner but nevertheless, they are authorized to sell the insurance offered by that particular company. An auto insurance broker, on the other hand, is in the business of finding insurance for a client. They are not the agent of the insurance company; they develop relationships with agents in order to pass business to them.

    Auto Insurance Broker

    In some cases, it is easier to hire a broker to find auto insurance for you. You do not pay the broker; they get a commission from the agent of the company you choose. Brokers do the research for you for a fee and can offer you policies from several insurance companies. The fee gets paid through commission, when you choose a company. The advantage of hiring a broker is that sometimes they are able to secure a better insurance deal because they are working for the customer. Brokers have to carry a license to do business, which means they have more experience and education than sales agents do. Brokers will help assess the needs of the client and find several companies that fit that need, though using one can raise your premiums because of the extra administrative fee.

    If you work for a business looking to insure a fleet of vehicles, it might be worth the commission you will pay the broker to let them find the best deal for you. You do not pay an insurance broker to insure your vehicle(s). They make their money through commissions. Because they constantly do business with insurance agents, they may be able to secure a better deal through them than you would on your own. The broker can assist you with the claims process and help to resolve issues you have.

    Auto Insurance Agents

    When shopping for car insurance, an auto insurance agent will be the first person with whom you will speak. The job of an auto insurance agent to find new clients, write new policies, and sell them insurance on behalf of the company they work for. There are two types of auto insurance agents; those who sell insurance for just one company and those who are independent and sell insurance for several companies.

    Auto insurance agents are sometimes referred to as insurance sales agents. Auto insurance agents are in the business of selling policies and are not responsible for seeing that their clients have the correct coverage. Auto insurance agents are cheaper because you do not have to pay an administrative fee, making your premiums lower.

    Role of an Auto Insurance Underwriter

    Most people have no idea what an auto insurance underwriter does much less the fact that they look at every policy. What an underwriter does is look at each policy application and determines what kind of risk you present if insured by the company you are applying. They also make sure that the insurer charges the right amount for the coverage you need, how much you will pay and if your application is accepted or denied.

    If it is convenient, you should visit in person your local auto insurance agent. You will get better service and be able to speak in person with the agent to tell them the kind of insurance you need to get the best deal