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Straight
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All auto insurance companies may say they have the lowest price. But if this were
true, it wouldn't matter who you called, right? Wrong! The truth is that all auto
insurance companies cannot come up with the lowest price all of the time. That's because different insurance companies usually want drivers with a certain type of
driving record. As a result, a driver with tickets and accidents won't find the
lowest price if he/she calls a company that wants clean drivers. Therefore, calling
the company that wants your driving record and situation is critical to finding
the lowest price. |
Who do you call?
You may call an insurance agent, a direct carrier, or a broker.
Does it matter who you call?
You bet your down payment it does!
What's the difference between an agent, a direct carrier, and
a broker?
AN AGENT, in most cases, is captive. This means he or she offers
insurance programs primarily from one insurance carrier. By definition, an agent
is an employee of that insurance carrier. Even though the agent is required to look
out for everyone's best interest, the agent's first obligation is to his or her
employer, which is the carrier. Because of the limited options available from just
one carrier, it usually means that it's either "all or nothing at all" when it comes
to selection and price.
A DIRECT CARRIER means that the carrier bypasses the agent or broker
and sells insurance programs directly to the customer. This is done by telemarketing,
direct mail or the internet. Some telemarketing representatives may not have a California
insurance license, particularly if they are located out of state. Also, direct mail
marketing can be time consuming because you have to complete and mail in a questionnaire
in order to receive a price. The perception created by using a direct carrier is
that the commissions
saved when bypassing an agent or broker is passed along as
a savings to the customer. However, the prices offered by a direct carrier are beaten
regularly.
Plus the direct carrier suffers the same "all or nothing at all" limitations
that a captive agent does by only having one insurance carrier to sell.
A BROKER, by definition, is an employee of the customer and not
any one carrier or company. Even though a broker is required to look out for everyone's
best interest, the broker's first obligation is to his or her employer, which is
the customer. Typically, a broker has a broader choice of auto insurance programs
from which to choose. A broker makes an agreement with various insurance carriers
to present their programs to the customer. The more insurance agreements that a
broker can
acquire ultimately means the broader price selection the broker has to
offer, including down payment and monthly payments. Most insurance carriers are
careful about who they make an agreement with. Therefore, the more agreements that
a broker has acquired means the better the reputation that broker has in the insurance
industry. FREEWAY INSURANCE recognized long ago that in order to offer the lowest
price, FREEWAY needed to assemble the largest selection of low price auto
insurance programs to choose from. Having more low price auto insurance programs than competing
agents, direct carriers and other brokers has made FREEWAY your best resource for
getting the lowest price on your auto insurance.
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