Reader’s Question:

Can you tell me the differences between an auto insurance broker and an agent? Which one should I preferably approach?

Janus

Anchorage AK

An auto insurance broker is different from an auto insurance agent in many ways. In the U.S., the magnitude of differences, however, differs from state to state.

Basically, an auto insurance agent represents an insurance broker and writes an insurance policy for you, the client. On the other hand, a broker simply writes an insurance policy on your behalf. This means that a broker can have many agents working for him. Most often, they have their own auto insurance business. Since an auto insurance broker has more and heavier responsibilities than the agent in terms of insurance, brokers are more highly regulated.

An auto insurance agent may also represent more than one insurance company. Thus, he has a wide range of different auto insurance policies that he can sort through to determine which ones will really fit your concerns, lifestyle and budget. He can even search for you the best auto insurance coverage at the lowest possible price from among the insurance companies he represents. This will also mean that your understanding and knowledge of the insurance company where you will be signing your policy will generally be through your agent and when the time comes that you make claims against your insurance policy, your insurance agent will process the claims for you.

On the other hand, since an auto insurance broker represents an insurance company, and owns it in most cases, you will have a better feel of what the company is all about, what it stands for, its mission and vision, and how it sees its client. Although focused only with the auto insurance policies his company offers, he can make adjustments and changes to better suit your needs. Talking to a broker will give you the chance to determine whether the insurance company will be there and will take care of you after, or even before, accident happens.

Choosing which ones to approach between an auto insurance agent and broker depends actually on what you really want. Do you want convenience? Do you want to be well-informed? Or do you just want to have the basic auto insurance available to you? Whoever you’ll be talking with, make sure you read and understand the terms and conditions and the fine prints in your auto insurance policy before affixing your signature in it.

Reader’s Question:

I’m looking to help my mom get life insurance coverage here in Pennsylvania. She’s in her mid-50s already. How can I help her get an affordable life insurance policy?

Denise

Bethlehem, PA

Since your mom is still in her early senior years, she may still be able to get relatively affordable life insurance. However, you and your mom would need to do some legwork in order to get the best possible rates and a good life insurance for seniors. Here are some tips:

1. Do Your Homework – Know what kind of life insurance works for your mom. Why is she taking out a life policy? Does she need coverage for a specific period of time only (Term life) or does she prefer lifetime coverage (Whole life.)

2. Skip the Insurance Agent/ Broker – Thanks to life insurance comparison websites it only takes minutes for you to get the latest rate quotes today. You can compare prices coming from many different insurers within minutes. Not only does it save time but also money since you don’t have to shoulder commissions fees.

3. Buy Higher Coverage – A higher coverage amount might actually cost you less in the long run. So if given an option between a $240K policy to a $250 policy, choosing the latter would actually give better rates.

4. Reap the Benefits of Being Healthy – Your mom can cut considerable costs if she doesn’t smoke and is leading a healthy lifestyle.

5. Go with a Specialist – Check out insurers specializing on life insurance for seniors. They would typically offer more competitive rates compared to general-coverage insurance companies.

6. Annual Payment Options – Paying in annual or even semi-annual sums can cut your total life insurance costs by as much as 20%.

7. Use Rating Agencies – Moodys, J.D Powers and A.M. Best are some of the best consumer rating agencies around. Through them you can find out the best-overall life insurers around.

Reader’s Question:

Due to my busy schedule, I am planning on hiring a car insurance broker. What should I do first and what can I expect from them?

Ruth

Dallas, TX

Car insurance brokers will provide you assistance in shopping for the right car insurance coverage. Not only that, they can provide you different options when acquiring car insurance that will fit your budget.

The first thing you need to do is provide them your personal information, it’ll be important for car insurance brokers to contact you. They might also need your yearly income report and in some cases, the budget you want for car insurance, so they can analyze the car insurance coverage and cost that will work for you.

When it comes to vehicle details, you have two options on providing them the information. The first one is you can call them over the phone and provide them the details. Your second option is to let them visit you at home and let them get a copy of your vehicle documents. At the same time, they can check your vehicle personally and see if there are things such as safety and security features that can be helpful in acquiring discounts on car insurance companies.

Once you provided all the necessary information to your car insurance broker, they will start processing your request. They will start off by acquiring quotes from different car insurance company and they will do the comparing for you. All you got to do now is select the most suitable car insurance package that they have done for you.

Reader’s Question:

I’m a working mom and I recently bought a car. Time is valuable to me and I heard that an auto insurance broker can help insure my car. What is an auto insurance broker and what qualities must they posses?

Donna

Reno, NV

Looking for inexpensive car insurance can sometimes be a hassle because it will require you to dedicate your precious time. If you have no time or you are not knowledgeable when it comes to insuring a car, you can acquire service from an auto insurance broker and have him done it for you. An auto insurance broker is someone who knows the ins and outs of the car insurance trade. Think of them as a middle-man. Some of them have offices which its primary goal is to provide service to people like you. In theory, they get your car insured for a minimal fee or charge.

An auto insurance broker must posses the following attributes:

1. Trustworthy – having a trustworthy insurance broker is important because you need to know if you are really saving on car insurance or not.
2. Experienced – an insurance broker must have a lot of experience when it comes to dealing with car insurance company, especially if it’s about policy. Experienced auto insurance broker can explain to you all the aspects of car insurance from coverage to policy.
3. Professional – they must posses’ great skill specially in persuading car insurance company to offer the most affordable rate.

Some auto insurance broker have their own websites, you can find information about them regarding their experience, how long they have been doing this or simply read the comments about them if they can satisfy clients or not.

Reader’s Question:

What are the steps I should follow to become auto insurance broker? I have thinking about having this as I career since I also have an insurance background.

John

Newark, NJ

Insurance is a good career to get involved in, especially since it is something that people will always need. Nowadays, auto insurance is emerging to be the most popular policy, since people are looking for use vehicles daily for both personal and professional purposes. Why not cash in on the trend and become auto insurance broker?

All you need to do is follow these steps to become auto insurance broker:

1.) Educate yourself. You have two options – you can take one year of insurance-related courses in college or rack up five years of experience working for an insurance firm.

2.) Take the insurance broker’s license examination. Pass this test and you’re on your way to become auto insurance broker. Make sure, however, that your record is spotless because individuals charged with felonies will not be allowed to take this exam.

3.) Go the next step. Take the auto insurer’s broker licensure exam. This way, you can adeptly discuss the different types of auto insurance to your possible clients.

4.) Don’t stop learning. Polish your knowledge by attending continuing education courses. This way, you will be kept abreast of the latest trends in the insurance business.

5.) Renew your license on a yearly basis. Keep yourself an official insurance agent by renewing your license annually.

Reader’s Question:

I have been contacting several insurance brokers for my car insurance needs. However a friend tells me to go online instead. Why should I go online in shopping for my car insurance?

Karl

Salt Lake City, UT

Your friend is right. Instead of calling each and every insurance broker you know, you can save time and effort by going online instead. There are many reasons why going online is your easiest and most effective way of getting cheap car insurance.

First, visiting the website of a cheap car insurance broker allows you to get quick or immediate response. You do not have to wait on the line for the cheap car insurance broker to pick it up and tell you the details of the car insurance policy you are interested in buying. You might be able to talk to him, but how sure are you that he is always in his office? Once you leave him a message in his website, you can be sure that he will respond a day after, at the most.

Then, you can get to compare quotes and offers of cheap car insurance brokers at the same time when you go online. All you need to do is to visit a website specializing in insurance quotes and comparison.

Basically, shopping for a cheap car insurance broker through the Internet is quick and convenient for consumers like you.

Reader’s Question:

I’m planning to become auto insurance broker. Should I know anything in particular about being one?

Jackson

Charleston, WV

Although most insurance companies train their own agents and brokers, there are some things you definitely need to become familiar with if you plan to become auto insurance broker. It’ll take a whole book (or two) to discuss every single thing you need to know about being a good broker, but here are two of the most important things you should be familiar with and improve if you plan to become one:
State Laws

The very first things you have to become intimately familiar with are your local state laws on driving and insurance, because each state has its own specific regulations concerning these matters. For example, some states adopt a contributory or comparative negligence rating, where the party who has an accident-responsibility percentage of 51% or above will be responsible for all damages occurred, while other states adopt no-fault policy where your own insurance company will pay up regardless of who’s fault the accident was

Salesmanship

This is probably the single most important factor that you’ll need if you plan to become auto insurance broker. Your future as a good auto insurance broker is determined by your salesmanship, or your ability to sell something to other people. This salesmanship is determined by your personality, your convincing ability, and your intimate knowledge of the plan you’re selling. You definitely won’t expect to sell anything if you can’t convince people to buy your plans.