I Need An Affordable Car Insurance Broker or Agent in New York

Reader’s Question:

I’m a 25-year-old self-employed female who has just bought a new car here in New York. I am trying to figure out which way to get cheaper car insurance. Should I get an insurance agent or a car insurance broker? What is the difference between the two?

Lessie

New York, NY

Lessie, an insurance agent represents a specific company, whereas an insurance broker will help you find an ideal quote among different companies. A broker will tailor your car insurance to your specific situation and look for the best possible insurance quote among a lot of companies. For those new in car insurance, this is the ideal way to go. An insurance agent is, of course, obliged to represent a specific company, so newcomers like you can easily be misled on car insurance quotes. So, his chief partnership is with the insurance carrier, and not you. In other words, his primary concern is how to earn money for his company, and not your welfare.

Therefore I would suggest that you find a car insurance broker. In that way, he or she may better explain the specifics of car insurance and tailor your insurance to your particular needs. Brokers will seek cheap prices or negotiate car insurance with discounts, and would have special rates companies do not advertise in public. They perform in your behalf without you paying them extra, since they get a commission from your chosen car insurance company. This does not mean, however, that all brokers have halos on their head. Different states came up with laws calculated to prevent deceptive practices of some businesses that represent themselves as car insurance brokers when, in fact, they are acting as an agent for one or two companies. In New York, car insurance brokerage is a regulated business (the same is true for most insurance brokerage around the country). Brokers from one state can also be licensed in another state (except Hawaii).

If you get the hang of the car insurance business, perhaps you can go online and compare car insurance quotes among the top companies. But for now the best bet is for you to find a reputable car insurance broker to help you decide on what car insurance you need.