What do you think about this broker experience?
About a month ago, I contacted a broker who provided quotes for auto and home insurance. The auto insurance was the same as my current policy, but they quoted me approximately $300 less per year for home insurance with better coverage. At the time, I hesitated to make a decision because I was considering purchasing a less expensive vehicle.
Recently, I reached out again to move forward and asked if anything had changed since our last conversation. The broker’s response was essentially, “Everything is about the same,” and they requested some additional information. I was informed that the quote was for a bundled package (home and auto) and was given the name of the insurance company. I also mentioned that I had received a lower rate from Geico online. I had to prompt the agent for the exact costs before proceeding—once again, it was the same auto price I’m currently paying, along with a $300 savings on the home policy.
After verbally agreeing to proceed, I was surprised when the broker mentioned a $200 fee that hadn’t been disclosed earlier, which partially negated my savings on the home insurance. He described it as a “state-mandated fee,” but when I pressed for clarification, it turned into a “state-mandated maximum fee.” I questioned why it was labeled as mandatory if it wasn’t truly a statewide requirement. It would have been more transparent to simply refer to it as their brokerage fee.
Ultimately, they agreed to waive the fee. However, when I received the e-signature documents, I discovered that the auto insurance was with a different company from the home insurance. It was an app-based service that I wasn’t familiar with, and there was no indication of any connection between the two companies on their websites.
Given that the two insurers appear to have no affiliation (the home insurer doesn’t offer auto policies and doesn’t list any clear relationship), am I being misled about this being a bundled deal? Can I insist on getting a separate quote for the auto policy, especially if it’s available at a lower cost?
I’m feeling quite uneasy about this broker experience. I wouldn’t mind the brokerage fee if it had been clearly communicated before I was ready to sign.
It sounds like you had quite a frustrating experience with this broker. Here are a few thoughts on your situation:
Transparency is Key: It’s concerning that the broker didn’t disclose the broker fee upfront and labeled it as a “state mandated fee.” Transparency about fees is essential in building trust, and it’s understandable that you would feel uneasy about the entire process.
Bundling Confusion: If the home and auto insurance are from two unrelated companies, that does raise questions about the validity of the “bundle.” A true bundle usually involves a single insurer providing both policies, which often results in additional discounts. It might be beneficial for you to get written clarification on what the broker meant by “bundle.”
Comparative Shopping: You did the right thing by comparing quotes. If Geico offered you a better rate for auto insurance, you should definitely push to see if the broker can find a more competitive auto policy, even if it’s not bundled. Brokers should be able to shop around to find the best deal for you.
Consider a Second Opinion: If you’re feeling uneasy about this broker, it might be worth reaching out to another broker or agency for a second opinion. They can offer insights on market rates and help you understand if you’re truly getting the best deal.
Your Rights as a Consumer: If you feel you’ve been misled or not given the complete picture, you have the right to question the service and seek to have the agreement revised or even pulled back if you are not comfortable proceeding.
Ultimately, it’s crucial that you feel confident and secure in your insurance choices. Don’t hesitate to ask more questions or seek alternatives until you find a deal that you feel good about.