Experience with My Insurance Broker: Seeking Your Thoughts
About a month ago, I contacted a broker for quotes on auto and home insurance. They offered me a home insurance policy that was approximately $300 cheaper per year than my current one, with a higher coverage limit, while the auto quote matched my current rate. At the time, I decided to hold off since I was considering switching to a less expensive vehicle.
Recently, I followed up to proceed with the insurance application and asked if anything had changed. The broker responded with, “Everything looks about the same,” and requested additional information. They confirmed that the quoted price was for a bundle (home and auto) and mentioned the insurer’s name. When I brought up a lower rate I found with Geico, I had to prompt the agent to provide the cost particulars before moving forward. Ultimately, I would save $300 a year on home insurance but my auto rate remained the same.
I verbally agreed to the terms, but when the discussion turned to the initial payment, I was surprised to discover a $200 broker fee, which had never been communicated to me before. The agent claimed it was a “state-mandated fee” that they simply passed on to clients. After probing further, he adjusted his statement to say it was a maximum fee mandated by the state. When I questioned the use of “mandatory” since it isn’t truly required, he could not provide a clear answer and suggested it was their brokerage fee for services rendered.
Ultimately, they agreed to waive the fee. However, upon receiving the e-signature documents, I noticed that the auto insurance was with a different company than the home insurance—an app-based provider I had never heard of and that wasn’t disclosed to me earlier.
This raises some concerns: If these two companies are not actually affiliated (the home insurer does not offer auto policies and there’s no clear relationship stated), am I misled about this being a legitimate bundle? Should I be able to request a separate auto quote, especially if it ends up being cheaper?
I’m feeling a bit uneasy about this broker experience. While I wouldn’t mind paying a brokerage fee, I believe it should have been disclosed much earlier in the process. What are your thoughts?
It sounds like you’ve had quite the frustrating experience with the broker. Here are a few thoughts:
Transparency is Key: It’s concerning that the broker didn’t disclose the $200 fee upfront. Clear communication is vital in any financial transaction, and it seems that you had to dig for information rather than being given it upfront. A reputable broker should be clear about all fees from the start.
Bundling Concerns: If the auto and home insurance policies are not from affiliated companies, the term “bundle” may not apply as it typically does. You have every right to ask for a separate quote for the auto policy alone, especially if you found a better rate with another provider. It sounds like the broker was attempting to create a bundled experience when the companies involved are not traditionally bundled.
Switching Insurers: If you feel uneasy about the broker or the insurers they’ve suggested, it might be a good idea to explore your options further. You could reach out to other brokers or companies for quotes, which may give you a better sense of the market.
Consider State Regulations: It may be helpful to look into your state’s regulations on brokerage fees, as this can vary significantly. This might give you more context on the conversation you had with the broker regarding the fee.
Trust Your Instincts: If something feels off or if you’re not getting straightforward answers, trust your instincts. It’s important to work with someone you feel comfortable with, especially when it comes to something as significant as insurance.
In summary, you may want to ask for clarification about the bundling, consider getting separate quotes, and ensure you’re feeling comfortable with your overall experience before making a commitment. Your peace of mind is important!