Insurance World

If you are a business manager or owner, then one of the most important decisions you will have to make is choosing the right insurance broker for your business insurance needs. Although this is an important decision, it can be tricky to get right unless you can pinpoint exactly what you want from the broker or agent and what it is they can provide you with. Here are some useful tips on how to find the right insurance broker for your business needs:

Brokers and agents

In general, there are some differences between brokers and agents, although these differences can be quite complicated. Basically, you can have either an agent who works for a particular insurer, or a broker who is independent and does not work for any insurance company. The differences between agents and brokers are becoming blurred as many people act as both agents and brokers depending on your needs and the insurance companies involved.

Independent or not?

One of the most difficult decisions to make when looking for an insurance agent or broker is whether or not you should go for an independent agent or someone who works for a particular insurer. Obviously, someone who works for a particular insurer can only offer you products from that particular company, and if these prices aren’t competitive then you may find yourself paying too much for your insurance. However, the advantage of an insurer-employed agent is that they have full access to the policies of an insurance company. Independent brokers do not work for any particular company, and so they can look at a number of insurance companies for you. The problem with this type of agent or broker is that they may have limited access to insurance companies, and you are in essence paying for a service that you could carry out yourself.

Agent expertise

When looking for an agent or broker, you need to evaluate their level of expertise. A good agent is able to advise you in detail on all aspects of insurance for your company. You are relying on them too help you get the level of coverage that you need, so it is important that they have the expertise required. Many people pick their agent based on who has the best personality. Personality is a factor, but expertise is far more important. If you don’t pick someone who has the right level of expertise both in insurance and in your business sector, then you could end up paying too much or not being adequately covered.

Choosing the agent

Once you have decided what criteria are important, and established a budget for acquiring an agent, then you need to begin the selection process. You should ask the potential candidates about their professional qualifications, and also for their personal CV. You want to make sure that the agent you select is skilled in insurance coverage, and is more than just a salesman. Also, ask the agent some theoretical insurance problems that you know the answer to, as this can determine how knowledgeable and honest they are.

Drawing up terms

Once you have chosen an agent, make sure that all their duties and obligations are put in writing. Don’t assume that the agent will carry out all items that you expect them to. If you have the duties in writing then there is no room for error, and you will get the level of service that you desire. If you look around and do your research before employing an agent, and make it clear what you want, then you will find the right insurance agent or broker for your needs.

Let’s face it an auto insurance company is a business that is created to make a profit and if we are not careful we might end up paying super high premium rates when we could have paid much lower premiums if we only did some research.

Here is a list that I hope will help car owners in lowering their premium rates:

• Safety devices against car thieves

Who would ever think that theft devices are valuable not only in guarding your car against thieves, but also in lowering your premium? Theft devices come in various types. Some are automatic while some need to be manually operated. All these theft devices provide extra premium discounts. In some states window sketching may also be a source of additional premium discounts.

• Multiple car discount

Let us say that you have two cars (for the sake of the illustration) that you want to insure with an auto insurance company. Usually you have to pay separate premiums but did you know that you could actually save a great deal on the premium that you will be paying for your second car? How? Consult your insurance agent to help you.

• Choose Yearly Renewable Auto Insurance Policies

Purchasing a yearly auto insurance policy will provide you with greater savings since the premium rate is fixed for one year compared to buying a six-month policy which changes rates every six months. If you purchase a six-month policy the premium you paid on your first semi-annual premium will not be the same as your second annual premium payment. So instead of saving, you tend to pay more for the same amount of benefits.

• Comprehensive storage coverage

The comprehensive storage coverage is ideal if you are thinking of storing your car for a period of time. It is a great savings idea to keep only the comprehensive coverage during the time you store your car since other coverage will not be required. A car in the garage is unlikely to get into a collision thus it will not require liability coverage.

• Mileage

The mileage that your car travels everyday has a significant effect on the premium rate that you are to pay since the mileage will determine the particular class in which your car belongs. Each class has a different premium rate.

• Organization affiliation

There are many auto insurance companies that offer a discount for being affiliated with certain organizations. These organizations may range from credit unions, college sororities and fraternities, or just having a certain credit card may also earn you a considerable discount on your premium. To be sure, call your service center and ask them for a list of the organization affiliations that they accredit, the same goes with the credit cards.

• Defensive driving course

Some auto insurance companies provide considerable discounts simply by attending defensive driving courses. For more details just check with your state insurance commissioner or you insurance company to see if you qualify and also to inquire on their accredited driving centers.