Hi all, I decided to look into insurance options recently because my agent (who my family has been using for over a decade) has me paying $410 a month. I drive a nice car so I expect a higher than average payment, but $410 seemed a bit high. after looking around, none of the plans I’m offered are more than $300 a month. most are in the $250-$270 range. Is it possible my agent is putting something in wrong somewhere, or am I getting screwed? Is this overcharge normal for agents? Thanks!
Massive difference in insurance cost between agent and searching myself
byu/Ded1nside inInsurance
Posted by Ded1nside
18 Comments
Your agent may only have access to one company or if he has other carriers, you can ask him to shop and see what he comes up with. Sometimes one carrier is more expensive than another. This is why people shop around in the first place. Just because you found better elsewhere doesnt neccessarily mean hes doing anything malicious. Talk with him and see if he can beat it with his carriers. If not, you can switch
Show your agent the quotes you received and ask them to compare and contrast with what they have to offer. Find out if the quotes you’ve gotten elsewhere have *full* reporting run
Are the quotes you are doing running your MVR?
This is not uncommon, and it does not automatically mean your agent is doing something wrong, but it is absolutely worth questioning.
Different carriers price the same driver very differently. Your agent may have you with a company that is simply expensive for your age, vehicle, credit tier, or location, even if another carrier is much cheaper for the exact same risk.
Coverage differences are another big factor. It is easy to see lower prices online if the limits are lower, deductibles are higher, or optional coverages are missing. Your current policy may be broader than you realize, or it may not be. That is something to verify line by line.
There is also the human factor. Some agents get comfortable with one carrier and do not proactively re shop unless pushed. That does not mean you are being screwed, but it does mean inertia can cost money over time.
The right move is to ask your agent to quote the same limits and deductibles you are seeing elsewhere and explain the difference. If they cannot or will not do that clearly, then it is reasonable to move on. $410 is not automatically wrong, but if most carriers are showing $250 to $300 for comparable coverage, that gap deserves an explanation.
If these “quotes” are from online calculators you should engage with one and try to buy at that price.
I’m sick and tired of telling people to stop using agents but people call me crazy. The agents commission is something the customer pays not the company for example a $250 monthly policy with geico that $250 is what geico needs to cover you the reason the policy is $350 is because the $150 or more is the agents commission and the end of the day most agents aren’t doing anything for you but telling you to call the company directly, they are truly useless, sorry rant over.
Glad you figured it out and saved yourself a ton of money.
Are the $300+/- plans fully quoted after receiving and reviewing your MVA record and insurance/claims history, or are they initial “quotes” subject to additional underwriting? Most of the online quoting systems make favorable assumptions when providing an initial quote (like a clean driving record or insurance history, or that discounts are available) and if those assumptions turn out not to be accurate, the premium is often revised upward. Most states allow 30-60 days for a carrier to complete their underwriting and make premium adjustments, and those adjustments are retroactive to the first date of coverage. In other words, you may find yourself having to pay even more than $410 sixty days from now and you’ll have to pay a bill for the increased premium for those initial 60 days as well.
That doesn’t mean you can’t get a better deal elsewhere and it’s worth shopping around. Just proceed with open eyes.
You need a broker, not a captive agent.
It’s possible that when you quote policies online, you’re not seeing the true cost yet, since final reports haven’t been run. If you have any prior claims or tickets, those could appear right before purchase and potentially change the price.
You’ll also want to make sure the coverage limits and options are truly comparable.
Going direct may seem slightly cheaper upfront, but it can become a hassle if you ever have questions or need help quickly whether it’s an underwriting issues, claim guidance, or billing concerns. An agent can provide far better guidance than an online representative.
I would recommend having your current agent review and compare the new quotes to your existing policy to ensure there are no coverage gaps.
Pricing is different based on how you shop and how you pay. An online quote can be different than an agent quote. The agent gets a cut so that’s why their prices are higher. Paying monthly, in full, or in escrow will result in different payment amounts.
It is extremely likely that the quotes you are getting do not include all reports (soft quotes), but the agent is running all reports (firm quotes) before giving you the quotes.
Make sure that the online offers are giving you as much coverage as your agent!!! Many will show you lower rates that look Amazing but the coverage is less than Half of what you have now. I use a Broker that deals with Several different companies and I saved over $1K a year and my coverage is Double what I had before.
Cheap rates can be great if you know 💯 that you’re never going to need the coverage. Make sure your PIP is maxed out… I learned that the hard way 😖
A agent for anything these days is crazy. ChatGPT is in your pocket. I’d bet money within a few years realtors will die down. You already can buy a car without going to a dealer.
Can you.use $100 more a month? Ditch the agent
Always use online quote. Most people don’t realize bypassing the agent is even an option.
I also did online quoting. It was irritating but after working at it, apples to apples, it was marginally cheaper for me to go with AAA for home, auto and umbrella.
The default is usually lowest tpl limits and minimal or no physical damage cover. Are you sure you are comparing apples to apples coverage wise?
Don’t be afraid to look into your quotes further. It’s likely that you’re just getting soft quotes and when they give you your real quote it’ll be higher however that is not always the case. Just because they gave you a quote , you are not in any way beholden to them to sign up for their insurance.
My own little anecdote- a few years ago I had gotten lazy about shopping insurance rates. Then a traffic incident in the family caused our insurance company to drop us. Even with the violation that caused us to get dropped our new insurance ended up being $800 a year less than the old policy through the brokerage we previously used. The moral of the story is that it benefits you to shop around and it is not your job to put your agents kids through college.
Could be adding on a whole of extras that you may not even want. The agent gets a percentage of the premium as commission. Read your policy and see what is on there and just because you drive a nice car that doesn’t necessarily mean your premium will be higher than something much cheaper.