The law in every single state requires a driver to have liability auto insurance. Some even require full coverage insurance. For drivers with newer and expensive vehicles, purchasing full coverage insurance is always the best way to go. A simple online search or flip through the phone book will reveal just how many auto insurance brokers, agents, and companies are out there. With so many to chose from, it can be difficult to know what the best options are. Here are some basic tips to help drivers pick out the best commercial auto insurance broker for their needs.
The first thing a customer needs to be aware of is the difference between an insurance agent and a broker. An agent may have their own office, but they always work for a company or broker. They will write a policy on behalf of that broker. The insurance broker writes a policy directly for the customer and may have several agents working under him or her. A broker will be more heavily regulated by state and federal governments. They are usually more well established and have been in the business longer than an agent. This does not mean an agent is a bad way to go. You simply need to check the reputation of the company or broker they represent.
When it comes time to find a broker you can check your local phone book and call around for quotes. An even better option is to do a simple search online. Most companies have websites and you will be able to get quotes or at least approximate rates in the comfort of your own home. This makes things much easier when it comes to shopping around for the best prices. There are also third party sites where you can get quotes from multiple brokers at once. This further helps a customer to get the best rates available since multiple brokers will be competing for their business.
The cost of your insurance is of course the number one factor when it comes to deciding which broker to go with. Rates vary from state to state. They may even be different depending on your geological location within a state. Many other factors such as health, gender, age, and the type of vehicle will also play a part in how much your policy will cost. Whether you just need liability or wish to purchase a full coverage plan will also greatly affect the bill. When purchasing full coverage insurance, remember that lower monthly premiums are not always the best. This may simply mean higher deductibles when you need to make a claim after an accident. Last of all, your driving record is the single most important factor when it comes to the cost of insurance.
As of 2009, the average annual cost of auto insurance is $1,837. This is for insurance for one person. Family group rates can vary wildly from state to state and from one auto insurance broker to the next. If you plan on getting coverage for more than one driver or more than one vehicle, ask the brokers about their specific policies. In some cases there may be multiple policy discounts. This not only goes for insuring multiple drivers, but can include multiple types of policies such as flood, fire, and homeowners insurance. This of course depends on the type of insurance broker you go to.
Premiums are the highest for male drivers under the age of 25. Female rates are normally lower because statistics show that they are less likely to be aggressive or reckless behind the wheel. If the male driver is married then premiums will come down a bit. Statistics also show that married men will be more careful while driving. Many auto insurance brokers will lower a drivers insurance cost as they get older. If you maintain a good driving record, those costs will come down even further.
When you talk to an auto insurance agent or broker, be aware that they work on commission and will often try to pressure sell you some add on policies. Some of them may be useful, but it depends on your personal situation. Read all of the small print and don’t be afraid to ask questions or even to tell the broker no, but that you will research them and think about adding them later on.
One of the best ways to find a good auto insurance brokers is to ask your friends and family who they use. Word of mouth is an excellent way to find cheap and reliable brokers. It’s also a good idea to check out any broker before finally buying insurance from them. Call the Better Business Bureau to see if the agent or broker is in good standing or if they’ve had any customer complaints. You can also do a simple internet search to see if there is anything negative being said about the broker. Remember, with so many options available, you never have to settle for a bad or overly expensive insurance broker.
Finding a good auto insurance broker is easier today than it’s ever been. The internet makes searching and comparing rates so much easier. Those who don’t have access to the internet can always try the local library for free access. You will save yourself a lot of time and the trouble of having to make a ton of phone calls. You can also contact your state’s department of insurance. Most of them will give you the average cost of insurance by location. This is a good figure to know so that you can compare it to quotes to see if a broker is charging too much or if they’re offering a great deal.