A Better Way to Manage Your Everyday Money - Book - Page 272
An insurance broker is a professional who represents you in your search for the best coverage
that fills your needs. Instead of dealing directly with insurance companies, you are working with
one person who will research coverage, terms, conditions, and premiums, as well as recommend
the policy that best fits your needs.
Your insurance broker is normally paid a commission by the insurance company. They receive a
percentage of the premiums that you pay. If a broker charges a fee above your premiums, they
may not be someone with whom you want to do business.
Finding the right insurance broker for you is a matter of finding someone who you trust.
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Ask for referrals and references.
Check with friends and family for recommendations.
Contact the Better Business Bureau in your area.
Determine if a broker specializes in the type of coverage you want.
Spend the time you need to find the right insurance broker. You could be dealing with this person
or agency for the rest of your life to buy insurance, change coverage as your situation changes,
and process claims.
I’ve been a member of USAA for more than 50 years. The vehicles and houses that Lois and I
have purchased have all been covered under the same member number. In December each year
the company issues a policy refund to members. In February we receive a larger refund for being
long-term members. Our relationship with this insurance provider has been excellent.
Can you afford the premiums?
When you buy insurance, you are typically
committing to making monthly premium payments
for the term of the policy. For life insurance, that
could be until you die. For homeowners insurance,
you will be making monthly premium payments as
long as you live in the house. In other words, buying
insurance could be a very long financial
commitment. It is important that you buy only the
insurance that you need and can afford so that there
is little chance of a lapse in your coverage because of your inability to make premium payments.
Before signing on the dotted line for an insurance policy, play
