An Insurance Company is the actual insurer where as the Insurance Broker is the company representing you with the insurance company. An insurance broker does not pay your claims. The insurance broker will have a customer service representative available to answer your questions regarding your policy and your coverage. When working with a broker you usually get more personal service. Large insurance company's have a hard time competing with the family feeling that smaller companies have. Know your agents name and number and when you need their help, they will remember you too.

Don't forget that in most cases the insurance broker sells insurance for many different companies in order to help find the best fit.

Don't forget that in most cases the insurance broker sells insurance for many different companies in order to help find the best fit.

This is true. I find many times that insured's are confused as to the correct role the agent or broker actually plays. Sometimes it's better to go with a broker and sometimes it's not. Be careful of the broker that will steer you to a company, simply because that company pays a better commission to the agent.

Ask questions.

Like which company do you like best? Why do you like them? How long has your company represented them? (Longer the better) What are the top two companies you have. What are their advantages and dis-advantages.

Since I haven't had any accidents in ____ years, what is the premium? Are there any discounts because I'm over 50 etc. etc. What would lower my premium? Is there any additional coverage I can buy?

You are trying to find a broker/agent who is NOT an order taker. You want a knowledgable advocate who can offer you the best VALUE. Coverage vs Cost.

Then check the "A.M. Best Rating" of the Insurance company that the agent is promoting.

Ask "What's the Best's rating for that company?" If the agent doesn't know the answer instantly, he's a newbie or just not that well informed. For good companies offering insurance for personal vehicles with the owner having an average driving record, the answer should normally be A-, A, or A+.

For some insurers willing to take on tough commercial vehicles or personal vehicles driven by insured's with poor driving records, a B+ company might be OK. Companies below B+ or that are NOT rated are not advised.

A "Best's Rating" is purely a financial rating and has nothing to do with the reputation of any company as to how well it pays claims.

Then you can check your best deal with some of the direct players such as Geico or Progressive or Allstate.

My experience is that the local agent with the Insurance Banner shouting "Starting at $16.95!!!! is NOT your best deal. As a matter of fact I've seen
these "We'll finance you" deals with dozens of sheets of paper to sign end up costing ill advised consumers twice as much as normal, for half the limit, bare bones coverage, and many add-on fees.

These observations apply to US Insurance and also Mexican Auto Insurance (http://mexicaninsurancestore.com).

So buyer beware. You want an insurer who provides good value with a good reputation for paying claims.

If you have any questions , let me know.

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