What you need to know about insurance rates, brokers and agents.

Florida residents, business owners and property owners in Boca Raton all go through the process of obtaining insurance to protect their assets and insuring their liabilities are covered. But many think that if they shop around they can get insurance lower rates. Insurance rates are regulated by the State of Florida so the rates are the same whomever you contact to provide your premium quotes. The only determining factors that produce your specific insurance rates are the type of asset your are insuring and the specifics surrounding it.

Once this is determined, the rates insurance brokers or agents provide you are the same unless you choose an agent that works for one insurance company. These agents are often referred to as exclusive career agents or captive agents. In the case you will only be offered one product from one insurance carrier. When this happens you are locked into whatever rate that one company offers.

Best practice for consumers is to find an independent insurance broker that represents multiple carriers so they can shop around for the best rates each insurance company offers based on what their specific compensation is and the commission structure for their agents. Quotes from independent insurance agents will most likey be less than from one brand.

Does my broker make money off of my premiums?
Insurance agents and brokers have to be compensated of course, because that is how they make their living. There are two types of compensation in the insurance industry.

Commission Based Brokers
One is a commission-based compensation structure.This is when the commission is already built into the cost of the policy be the carrier. The insurance company will pay a commission to the broker for selling one of their policies. So you are not paying the agent or broker, the insurance company is. So whether you use an agent or an independent broker they still get compensated the same way.

Fee-Only Agents
The other type of compensation to your broker is called a Fee-Only agent. This means that you are paying them directly out of your pocket for their services. This type of insurance broker is rare and they they may also charge you an hourly consulting fee to obtain quotes.

This is the type of service you want to avoid. Their argument is that they are not getting a fee from the insurance company and in turn will provide you the product that is best suited for you. This is misleading because a good broker will always have you best interest in mind and will always be compensated no matter what carrier they align you with.

If you ever feel that an agent is pushing a particular product you should look elsewhere as this is not in your best interest. Also keep in mind that although they are fee based, they still receive compensation in the form of a commission from the company they choose for you. This will increase the cost of your premium every time and you will not get competitive rates from this type of broker.

The bottom line is that you are paying for consultation and the process of obtaining varied rates that you would otherwise receive for free if you went with a commission based agent.

What are the most important factors in finding an insurance agent?
The most important factor off all is finding an insurance broker that represents many insurance carriers so you they can tailor your policy to your specific needs and get you the best rates. A good broker will sit down with you at no cost and learn about your lifestyle, ask you questions so they can get to know you, review your current policies and explain to you in specific, easy to understand language what they recommend and let you make the ultimate decision what you feel is adequate coverage.

Never feel rushed or feel like you are just a number to them. A good insurance agent will develop a friendship with you and show their sincerity for what concerns you. They will always be available when you need them.

Their Knowledge is extremely important when it comes to assessing your risks and ability to adequately protect you. They are educated with the regulations in Palm Beach, Broward and Miami-Dade county and the State of Florida and they will inform you when you need to seek professional counsel from an attorney or certified accountant.

When searching for a qualified insurance broker all of these traits are very important. Seek advice from friends, read reviews and look for their participation in your community or Boca Raton Chamber of commerce. When you find the right insurance agency just as any other profession service you can be rest assured that that part of your life has stability and you are fully protected.