Why This Lawyer Says You Should Buy Car Insurance From An Independent Broker


 Why This Lawyer Says You Should Buy Car Insurance From An Independent Broker

The US Department of Justice is the first entity to urge consumers to buy car insurance from an independent broker because of the possibility that insurance companies could unfairly charge premium prices for those with a poor driving record. This article explores this concept and talks about what it means for those with bad driving records who have been denied their choice on whether or not to buy insurance from their own carrier.

As we discuss, the government statistics show that car accidents were one of the leading causes for personal injury in 2016, and now you will know why it is so important that people be aware of this law. Read on to learn more about why independent brokers are your best bet when buying your next policy.

The Issue

Insurance companies, especially those who are big and well-known like State Farm or Geico, should be responsible for evaluating your risk before they put a rate on your premium. This is their job. The problem arises, however, when you have a bad driving record and there may be an unfair amount tacked onto your premium due to the increased likelihood of you causing an accident in the future. On the other hand, if you have a good driving record that may reflect on lower premiums.

It can also be frustrating to think that insurance companies will deny your requests to transfer policies between companies, because they might be worried about losing money if you were to continue paying at high rates. Since there are so many insurance companies out there, however, having one that is willing to take you in with your history is still a possibility.

The Solution

The solution, when it comes to an independent broker, is that they have access to rates from various companies and can guide you through the process of finding one that will be fair. This way, you will know what type of rates you are looking at before committing to a new policy and can make an informed decision. Since independent agents do not work for a specific company and therefore have no incentive to raise your premium price unnecessarily, this arrangement is ideal for those who have bad driving records as well as those with good ones.

The point of the government's memo is that you can find the right insurance company through an independent broker, and it takes away the hassle of having to deal with unwanted premiums on your own. The main thing to remember in this case is to work with a professional who can guide you through your options, so that you are not left with any surprises along the way.

As we can see, there are many benefits to using an independent broker and they may be your first choice if you have a bad driving record or if you want more choice in insurance companies. You can take a look at our website for additional information about how this process works.

Resource: http://www.gulfcoastbrokers.com/blog/why-this-lawyer-says-you-should-buy-car-insurance-from-an -independent-broker/

Title: The Importance of Shifting Your Car Insurance to an Independent Broker – Gulf Coast Brokers Blog

Excerpt from the Original Article above: When you're in need of car insurance, you may be tempted to stick with the agents that your family and friends have recommended to you in the past. While this is not a bad decision, it could mean missing out on better deals from other carriers out there. After all, many of the big name insurance companies are owned by conglomerates. Instead of working with one insurance company, you could be working with dozens! This is where an independent broker can step in and help you find the right option for your own needs.

A large part of what an independent broker does is to present you with options from multiple insurance companies. You will not be restricted to only big name carriers like State Farm and Geico. You'll have the chance to look at quotes from other smaller providers that may offer better rates than their more well-known counterparts. The best part is that you'll have a chance to compare them before you sign with one of them and therefore really know what you're getting into.

Getting the Best Car Insurance Rates

One of the other benefits of going with an independent broker is that it gives you more options when it comes to finding the best insurance rates for your car. Many people simply go by their agent's recommendation and choose the carrier that appears cheapest first. The problem is that if the agent has a conflict of interest, they could steer you towards a less expensive choice or a policy from some other provider that may not actually be worth it. With an independent broker, however, there are no conflicts of interest because they are not tied to any particular company. They are therefore able to give you the best rates, no matter what you're looking for.

Another benefit of working with an independent broker is that they are the experts when it comes to your car insurance needs. You can be sure that they will have done their homework and know more about your particular insurance company and the products that it offers than anyone else out there. They will also have experience when it comes to working with different companies and should be able to find a policy for you that's better than any other agent could find. This way, while you're getting better rates, the rates are still fair because there is no conflict of interest when talking about pricing options.

Independent Brokers vs. Agents

There are two ways to go about buying car insurance: through an agent or through an independent broker. The main difference between the two is that you can be sure that your independent broker will not have any conflicts of interest when it comes to working with you and finding you the best policy for your needs. This means that they are not offering you a better deal just because they want more business from one insurance company over another. They will instead represent your best interests and find the right policy for the best price possible, which should always be in line with your needs as well as your budget.

When you compare auto insurance rates through an independent broker, you will be able to find a policy that works for your best interests and for your budget. This means that you'll end up with a policy that's more affordable overall, because there is no conflict of interest from your agent or from the company selling it. Your independent broker will work with you to find the right price point for what you want and need and give you the peace of mind in knowing that they are not working with any particular company. You can use this time-saving measure so that you know exactly what type of coverage is being provided, without having to spend time researching different companies.

Image copyright Getty Images. Image by keawsley | Flickr

Title: What Is An Independent Broker? | Investopedia – The Leading Marketplace for Financial Education and Advice

Excerpt from the Original Article above: An independent broker is different from a traditional insurance agent because they do not receive any commissions or referrals from the insurance company. Instead, they offer different rates and policies to customers. Many brokers are former employees of an insurance company, which allows them to gain professional knowledge of an insurance company's products and services. Independent brokers also have access to quotes from multiple insurers so that they can offer the best option possible.


Independent brokers are an excellent way to save money on your car insurance. They help you to find the best rates and policies, no matter what kind of car you drive, how old it is or how much coverage you're looking for. Give Gulf Coast Brokers a call today if you have any questions about independent brokers or if you'd like to get started on saving money with better car insurance for your needs. We offer free quotes for our services and love talking about these topics. Get in touch with us today for more information!

Resource: http://www.investopedia.com/terms/i/independent-broker.

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