So when I got my house my mortgage people put me in touch with some guy to handle my home/auto insurance stuff. I already had auto but not home. I assume this guy is a broker. I used him but he ended up charging me like 175 dollars for his services.
Are they really helping so much that they are worth 175 dollars? Like are the differences in insurance providers so much that it's worth spending 175 dollars to find someone to find the "best" coverage?
Posted by ShardsOfSalt
3 Comments
I’ve never been charged by my broker… They get their cut from the insurance companies.
Brokers are very beneficial to get rates that you normally wouldn’t have access to. Personally I feel if you have a “excellent” credit rating and no/low history of filing claims, you don’t need to pay a broker and can go and get quotes on your own. It’ll take a couple hours and you’ll get lots of spam calls, but will save you a couple hundred from paying someone else to do it.
But, if you have not the best credit, multiple accidents or no driving/mortgage history, a broker can save you more than a couple hundred dollars by accessing information you’d never be able to get.
Tldr; it depends on the circumstances.
A good independent insurance agency/agent/broker doesn’t charge clients any money for their insurance services. They are paid commission from the insurance companies