Not all agents charge a broker fee.  If the agent is a captive agent, which means they only sell insurance for one company, then that agent is not allowed to charge a broker fee.  Captive agents work for companies like, State Farm, Allstate, Farmers and AAA to name a few.  If your agent works one of these companies and charges you a broker fee, you should call the company and report them.

Broker fees are mostly charged by insurance Brokers, why?  Brokers just don’t represent one company, they represent several.  The advantage to you, you are shopping several companies when you get quotes from an insurance Broker.  The insurance Broker is charging you a broker fee because they are searching the lowest quote for you and again they represent several companies.

One of the reasons I charge a broker fee is because some people start a policy just to get a proof of insurance I.D. card and then they cancel the policy.  Essentially, the agent has to pay back his commission and basically works for nothing.  On the other hand, if the agent collects a broker fee, he is assured of making some money for his efforts. 

Some Brokers may represent a company that will not allow the agent to charge a broker fee.  Travelers insurance and Safeco insurance are two companies that sell their policies through brokers and will not allow the agent to charge a broker fee. 

What am I saying here?  I’m saying be aware if you’re agent is a captive agent, (selling for one company), or a Broker representing several companies. 

Don’t be turned off by paying a broker fee, especially if the agent is saving you money.  But, don’t pay a high broker fee either. 

Here at www.starkquote.com we charge a low broker fee of $50.  Most insurance Brokers charge $100 or more.  We only charge this small amount to protect us against the people who will not continue their policy and let it lapse for non-payment.

Again, this month only, (October 2007),  if you mention this article and go on our site for a quote we will waive the broker fee.

As always, if you have any questions or comments, contact www.starkquote.com or call our toll-free number for a quote.

                              1-800-654-4003

We are the experts for home and car insurance in California.