How can using an insurance broker save me money?

Insurance brokers can save you 15% to 25% on premiums by comparing prices across multiple insurers and negotiating on your behalf. This can result in significant savings on home and auto insurance.

Can an insurance broker offer better coverage options than an agent?

Yes, insurance brokers have access to a wider range of insurance products from multiple companies, allowing them to tailor coverage to your specific needs and offer more competitive pricing compared to an agent tied to a single insurer.

The Secret to Save $300-$600 On Your Home and Auto

Q: What is the difference between an insurance agent and an insurance broker?

An insurance agent represents a specific insurance company and sells policies from that company, while an insurance broker works for the consumer. Brokers have access to multiple insurers, allowing them to compare policies and find the best coverage at the lowest price for their clients.

Q: How do I find a reliable insurance broker in my area?

To find a reliable insurance broker, seek recommendations from friends, family, or online reviews. Ensure the broker is licensed in your state and has experience with the type of insurance you need. Interview a few brokers to compare their approaches and expertise.

What is the difference between an insurance agent and an insurance broker?The Benefits of Using an Insurance Broker for Home and Auto Insurance

When it comes to purchasing home and auto insurance, making the right choice between an insurance agent and an insurance broker can have a significant impact on your wallet. On average, consumers who switch from an insurance agent to an insurance broker save between 15% to 25% on their premiums. This can translate to hundreds, if not thousands, of dollars in savings each year, depending on the value of your home and vehicles. In this article, we will explore the key differences between an insurance agent and an insurance broker and demonstrate how using an insurance broker can lead to substantial cost savings by securing the best possible coverage at the lowest price.

Disclaimer: As a fee-only Registered Investment Advisor, Intermountain Wealth Management DOES NOT SELL insurance products. The Professor Retirement System’s Insurance portion is strictly designed to lower your overall liability and save you money on premiums, not to sell insurance.

Understanding the Difference: Insurance Agent vs. Insurance Broker

Insurance Agent: An insurance agent is a representative of a specific insurance company, such as Allstate, Geico, State Farm, or Farmers. Agents can either be "captive," meaning they work exclusively for one insurance company, or "independent," meaning they can sell policies from a few select companies. However, even independent agents typically have a limited range of options because they are tied to specific insurers. The primary role of an agent is to sell you a policy from their company or the companies they represent.

Insurance Broker: An insurance broker, on the other hand, works for the consumer, not an insurance company. Insurance brokers have access to a broader range of insurance products from multiple insurers, allowing them to compare policies and prices across the market. Their goal is to find the best possible coverage at the lowest price for their clients. Unlike agents, brokers are not beholden to any one insurer and can provide objective advice based on your specific needs.

How Insurance Brokers Save You Money

Insurance brokers save you money in two main ways: by comparing prices across multiple insurers and by negotiating on your behalf.

1. Comparing Prices Across Multiple Insurers: Insurance brokers have access to a wide range of insurance products from various companies. This access allows them to shop around and compare different policies and prices. While an agent might only present you with one or two options, a broker can present you with several, ensuring that you get the best coverage at the most competitive price.

2. Negotiating on Your Behalf: Insurance brokers often have strong relationships with multiple insurance companies, which gives them leverage when negotiating prices and terms on behalf of their clients. They can advocate for discounts or better rates based on your individual circumstances, such as your credit score, driving history, or home security features.

The Secret to Save $300-$600 On Your Home and Auto

A Real-World Example: Comparing Costs

To illustrate how much you can save by using an insurance broker, let’s look at a real-world example.

Imagine you're looking for home and auto insurance. You decide to get quotes from two popular insurance companies, Allstate and Geico, both of which are known for their direct-to-consumer business model.

Allstate Quote:

• Home Insurance: $1,200 per year

• Auto Insurance: $1,500 per year

• Total: $2,700 per year

Geico Quote:

• Home Insurance: $1,100 per year

• Auto Insurance: $1,400 per year

• Total: $2,500 per year

At first glance, Geico appears to be the cheaper option, saving you $200 annually compared to Allstate. However, these quotes are based on a limited set of factors and may not reflect the best deal available in the broader market.

Now, let's see what happens when you consult an insurance broker.

Broker Quote: The broker shops around and finds the following deals:

• Home Insurance: $900 per year with a lesser-known but highly rated insurer • Auto Insurance: $1,100 per year with another reputable company

• Total: $2,000 per year

By using a insurance broker, you've saved $700 per year compared to Allstate and $500 per year compared to Geico. The broker was able to find a lesser-known but equally reliable insurer for your home, and a better deal on auto insurance from another company.

How to Find the Best Insurance Broker in Your Area

Finding the best insurance broker in your area requires a bit of research, but the effort can pay off significantly in the form of better coverage and lower premiums. Start by asking for recommendations from friends, family, or colleagues who have had positive experiences with insurance brokers. You can also look online for reviews and ratings on platforms like Google, Yelp, or specialized insurance forums.

Make sure the insurance broker is licensed in your state and has experience with the specific types of insurance you need, such as home and auto. It’s also wise to interview a few brokers to

The Secret to Save $300-$600 On Your Home and Auto

compare their approaches and see who seems most knowledgeable and trustworthy. Finally, choose a broker who is transparent about fees, clearly explains your options, and demonstrates a commitment to finding the best possible deal tailored to your needs.

Why Do Insurance Brokers Get Better Prices?

Insurance brokers have a few key advantages that allow them to secure better prices for their clients:

1. Access to More Insurers: Insurance brokers are not tied to any one insurance company, which means they can explore options from a broad range of insurers, including smaller or regional companies that may offer better rates.

2. Specialized Knowledge: Insurance brokers are experts in the insurance market and understand the nuances of different policies. They can identify gaps in coverage, suggest the right endorsements, and ensure you're not overpaying for unnecessary add-ons.

3. Bulk Discounts: In some cases, insurance brokers can offer bulk discounts because they bring in a large volume of business to certain insurers. This can result in lower premiums that you wouldn't be able to access on your own.

4. Customization: Insurance brokers can tailor your insurance package to meet your specific needs. Instead of a one-size-fits-all policy, they can mix and match coverage from different insurers to create a customized solution that maximizes your savings.

Additional Benefits of Using an Insurance Broker

In addition to saving money, there are other benefits to using an insurance broker:

• Ongoing Support: Insurance brokers provide ongoing support and can assist with policy renewals, claims, and any changes to your coverage. If your circumstances change, they can re-shop your policies to ensure you're still getting the best deal.

• Objective Advice: Because insurance brokers are not tied to any one insurer, they can offer objective advice that is in your best interest, not the interest of an insurance company.

• Time Savings: Shopping for insurance on your own can be time-consuming. A broker does the legwork for you, saving you time and hassle.

Conclusion

While it might seem easier to go directly to a well-known insurance company like Allstate or Geico, doing so could cost you more in the long run. Insurance brokers offer a valuable service by comparing prices across multiple insurers, negotiating on your behalf, and customizing your coverage to fit your needs. In our example, using a broker resulted in significant savings—up to $700 per year—demonstrating that the additional effort to consult with a broker can be well worth it.

Whether you're insuring your home, your car, or both, working with an insurance broker is a smart financial move that can lead to substantial savings and better coverage.

The Secret to Save $300-$600 On Your Home and Auto

Intermountain Wealth Management is a Registered Investment Adviser (RIA). The company manages several fee-based portfolios comprised of various equity and fixed-income investments that may include mutual funds and exchange traded funds and stocks. This is not a prospectus or an offer to sell any security. Intermountain Wealth Management nor any Investment Advisor Representatives (IAR) of Intermountain Wealth Management are licensed to sell insurance products. Intermountain Wealth Management is neither an insurance agent nor insurance broker. Information included herein is intended for education and information purposes only.

‍

Schedule an appointment with one of our Registered Investment Advisors

‍