Auto insurance brokers act as a middle man between you and various insurance companies, helping you find the right policy based on your individual requirements. Once you give them a gist of what you need, they will be able to find appropriate and affordable policies within your budget. Most importantly, insurance brokers work independently, and since they are not tied to any particular company, you have an opportunity to get the best deals from various companies and competitive markets. We bring you the top 5 reasons why finding a cheap auto insurance broker will work in your favor:
1. They Know How You Can Lower Your Premiums
Not all insurance companies mention their available discounts on their website. But a broker will have insider information on the various offers presented by multiple companies. Thus, they can advice you on ways to lower your premium rates. Simple things like going paperless, early renewals, taking a driver improvement course, bundling insurance or even adding safety features to your vehicle can make a huge difference in your premiums.
2. They Know If Your Rates Will Go Up When You Make a Claim
Your insurance broker will know what kind of claims can raise your rates. Most companies have strict rules for applying surcharges after you have been involved in an accident or made a claim. These vary by insurer and might be difficult to understand for the common man. Your broker will be able to give the right advice about when you should make a claim and when it is better to settle. Especially if it is your second accident or violation in the recent years, the process can be more complicated. The kind of claim also matters in determining the hike. For example, a bodily injury claim may raise rates more than a property damage claim.
3. They Know What Information is Checked When You Request a Quote
Once you provide all the requested information on an insurer’s website, the company will double-check certain factors to make sure your details are accurate. Your broker will know exactly what reports are pulled out to give you an estimate on your policy. These can include reports on your vehicle registration, mileage, claim history, and also undisclosed drivers who might be living with you. Having a broker’s opinion on these matters will help you save money in the long run.
4. They Understand the Grid Rate Calculator
The insurance rates in Alberta are determined using the grid rate calculator. While you may not be properly aware of how this works, your broker will have a though knowledge of the variables used to arrive at the premium costs. If you want to save some extra money, you can always find a cheap auto insurance broker who will help you input the right values to get an affordable auto insurance.
5. They Will Notify You of Possible Pitfalls
When buying an insurance policy, most customers are unaware of the processes, the claims and the changes that can impact their rates. A broker will not just help you in case you need to make a claim, but also advice you on various instances that can influence your policy. For example, they will know whether your crashed vehicle will be considered a total loss by the company. They will also let you know in advance if you are at a risk of non-renewal in case you have too many accidents or claims on your record. They can also tell you if certain tickets will increase your premium rates and when you can expect the tickets to drop from your record. If you’re looking to buy a new car, you can also consult a broker to understand the kind of insurance costs associated with various car brands and models.
Finding a cheap auto insurance broker is not just about saving on the commission fees, but also getting the right guidance and support throughout the lifecycle of your vehicle and driving time.