What are your thoughts on my experience with this broker?
About a month ago, I contacted a broker for quotes on auto and home insurance. They quoted me an auto insurance premium that was identical to what I’m currently paying, but the home insurance was about $300 less per year, with a higher coverage amount. I hesitated to commit at that time since I was considering getting a less expensive vehicle.
Recently, I followed up to see if anything had changed. The broker responded with essentially, “Everything looks the same” and requested additional information. I learned that the initial quote was for a bundle of home and auto insurance, and they revealed the name of the insurer. I informed them that I had quoted Geico online and received a significantly lower rate. I had to push the agent to disclose the total cost before proceeding. Ultimately, I would be saving around $300 per year on home insurance, while the auto quote remained unchanged from my current premium.
After verbally agreeing to move forward, the broker mentioned a $200 broker fee that hadn’t been disclosed previously, which diminished my savings on the home insurance. He claimed this was a “state-mandated fee that we pass along.” When I questioned this, he clarified it was a state-mandated maximum fee. I then asked why he referred to it as mandatory when it isn’t truly mandated by the state; why not simply label it a brokerage fee for their services?
Eventually, they agreed to waive the fee. However, when I received the e-signature documents, I noticed that the auto insurance was with a different company, one that the broker had never mentioned before and that I had never heard of.
Given that the two companies don’t seem to be affiliated (the home insurer clearly does not write auto policies), am I being misled about this being a bundle? Can I insist they provide me with a separate auto quote, especially if it turns out to be cheaper for me?
I’m feeling a bit uneasy about this broker. While I don’t mind paying a brokerage fee, it should have been disclosed before I was ready to sign anything.
It sounds like you had quite a frustrating experience with the broker. Transparency in the quote process is essential, and it seems like there were several instances where you didn’t receive all the information upfront. Here are a few thoughts on your situation:
Bundling Clarification: If the home and auto policies are from completely different companies, it raises a good question about what “bundling” really means in this context. Bundling typically implies some level of partnership or discount between the insurance providers. Since the companies aren’t affiliated, it might not constitute a true bundle in terms of benefits.
Broker Fees: The fee should have been disclosed upfront. It’s good that you questioned it and they agreed to remove it, but the fact that they initially labeled it as “state mandated” raises a red flag. Brokers need to be clear about their fees from the beginning.
Getting a Separate Quote: Yes, you absolutely have the right to ask for a separate auto policy quote. If you found a cheaper option with Geico that suits your needs, you should definitely explore that route instead. If the broker can’t provide you with a competitive quote for the auto insurance, you might not need to use their services for that portion.
Moving Forward: Given the uneasy feeling you have about this broker, trust your instincts. If you feel uncomfortable or if the communication seems off, it may be worth seeking quotes from other brokers or insurance companies. It’s better to work with someone who communicates transparently and puts your interests first.
Remember, you deserve to have a clear understanding of your insurance options and associated costs without any surprises. Don’t hesitate to advocate for yourself!