When people are looking to buy visitors insurance, they often wonder whether they should purchase it from an agent, a broker, or directly from the insurance company.
Where should I buy the visitors insurance from?
You should always consider purchasing visitors insurance from a reputed broker such as Insubuy.Why purchase from Insubuy®?
If I buy from a broker, will they charge more money?
No. Brokers can't charge any more (or any less) money as the prices are regulated by law and everyone has to pay the same price for the same insurance.
If you are selling the same insurance for the same price as the insurance company, how do you make money?
Brokers are paid commissions by the insurance company.
Can I ask the insurance company to pay the commission to me if I buy directly from them?
No. Insurance companies are allowed to pay the commission to only licensed insurance agents/brokers.
Can I ask the insurance company to reduce the price of the insurance by the amount of your commission?
That is the same thing as discounting the insurance and the insurance companies are legally prohibited from doing so.
Can you pay us some money out of the commission you get?
No. We are legally prohibited from doing so.
But why can't I get any lower price anywhere, in terms of any discount or rebate?
Because it is in your best interest to concentrate on the benefits of the insurance and the service you get. Since you don't have to shop around for price, you can focus on benefits and the service, which are the most important aspect of getting an insurance. That is why the U.S. government has made strict rules against any kind of discount or rebate. The price you pay should not depend upon your bargaining skills. You can be assured that you are not paying a single penny higher than anyone else for exactly the same insurance.
If the plan pays you the commission, does that mean you work for them?
Brokers work for the customers, you. Brokers represent multiple companies and typically are in a position to suggest you the most suitable plan for your needs. Brokers don't work for just one company.
On the other hand, agents work for just one insurance company and mostly in the best interest of the insurance company, as opposed to you as the customer. They are close to being an employee of the insurance company, but their compensation agreement is typically a little different. If a specific insurance plan from the company they represent is not suitable to you, they typically may not have other choices. Therefore, you are left to contact multiple companies/agents yourself and decide what works best for you. On the other hand, a broker that represents multiple companies can recommend what works best for you. Why not let the broker work for you for free?
You are saying that a broker works for the customer but gets paid from the insurance company. How is that?
A broker works for you but someone else has to pay them for that. As a customer, isn't that wonderful for you? What do you really have to lose?
I am convinced that I should purchase the insurance from a broker. But there are many brokers who sell the same thing. How do I decide which broker to work with?
Please read the Why purchase from Insubuy®? article below: