What are your thoughts on this broker experience?
About a month ago, I contacted a broker for a quote on auto and home insurance. While the auto insurance quote matched my current rate, the home insurance was approximately $300 cheaper with better coverage. At that time, I decided to hold off, as I was considering switching to a less expensive vehicle.
Recently, I followed up to express my interest in moving forward and asked if anything had changed. The broker’s response was essentially, “Everything looks about the same,” and they requested some additional information. I was informed that the quoted rate was for a bundle (home and auto) and given the insurer’s name. When I mentioned that I found a significantly lower rate through Geico, the agent finally disclosed the cost, which again showed I was saving $300 on home insurance while the auto rate remained consistent with my current payment.
After verbally agreeing to proceed, we began discussing the down payment, at which point I discovered a $200 broker fee that hadn’t been mentioned before—this essentially diminished my savings on the home policy. The broker claimed it was a “state mandated fee that we pass along.” When I probed further, he changed his wording to describe it as a state-mandated maximum fee. I questioned why he used the term “mandatory” when, in fact, it wasn’t required by the state, and why it wasn’t framed upfront as their brokerage fee for services.
After some back and forth, they agreed to waive the fee. However, once I received the e-signature documents, I learned that the auto insurance is from a different company than the home insurance—a lesser-known app-based provider that I had not heard of prior.
Considering that these two companies are not affiliated (the home insurer doesn’t offer auto policies or seem to have any clear connection), am I being misled about this being a true bundle? Shouldn’t I have the right to request a separate auto policy quote, especially if it turns out to be less expensive?
I’m feeling quite uneasy about this whole situation with the broker. While I wouldn’t mind paying a brokerage fee, it should have been disclosed before I was ready to sign.
It sounds like you’ve had quite a frustrating experience with that broker! Transparency is key in any insurance transaction, and it’s understandable to feel uneasy when information isn’t fully disclosed upfront. Here are a few thoughts on your situation:
Bundling Clarification: Since the auto and home insurance are through different companies without a clear affiliation, you are right to question the bundling claim. Typically, a “bundle” implies a direct partnership or that both policies are under the same insurer, which doesn’t seem to be the case here. You should definitely explore asking for a separate auto policy quote from the broker or directly from other companies to see if you can get a better deal.
Broker Fees: It’s concerning that the broker fee wasn’t disclosed earlier in the process. While broker fees can be standard practice, they should be communicated clearly from the start so you can accurately assess your total costs and savings. It’s a good sign they agreed to waive it after you raised the issue, but the lack of upfront communication is definitely a red flag.
Research Alternatives: It might be worthwhile for you to shop around with other brokers or seek quotes from insurers directly. If you’re getting a better rate from Geico, that’s an option you might want to consider seriously. Don’t hesitate to bring up these findings with your current broker; they may offer to match the rate or give you a better deal if they see you’re exploring other options.
Due Diligence: Make sure to do thorough research on the companies involved, especially the app-based insurer. Check their reviews and customer satisfaction ratings. You want to ensure that you’re working with a reputable company that will provide good customer service when you need it.
Ask Questions: Don’t hesitate to aggressively question any broker or insurer about any concerns you have. It’s your right as a consumer to know what you’re paying for and to understand the service being provided.
Trust your instincts—if you’re feeling uneasy, it’s worth reevaluating whether you want to move forward with this broker or find an alternative that inspires more confidence. Good luck!