Why Working With an Independent Broker Gets You a Better Rate

When you call the 1-800 number on a TV commercial or walk into an insurance office, you're usually talking to a captive agent. Captive means they work for one company and sell that company's products.

That's not inherently bad. Those carriers often have good products. The problem is that you have no way of knowing whether their rate is competitive, because you're only seeing one option.

An independent broker isn't employed by any carrier. I have contracts with multiple companies, 10 in my case, and I can place business with any of them. My job is to figure out which carrier will offer you the best rate and approval given your specific profile.

That profile includes your age, health history, tobacco use, family history, and what type of coverage you're looking for. Different carriers underwrite these factors differently. One company might penalize a controlled blood pressure condition significantly; another might price it the same as a healthy applicant.

For straightforward cases (young, healthy, no significant history) the difference between carriers is real but not dramatic. A few dollars a month.

For anyone with any health history, the carrier you end up with can mean a 30-50% difference in premium for the same coverage. I've had clients quoted $180/month by a direct carrier and $95/month for the same coverage once I shopped their profile to the right company.

The underwriting process is where independent brokers earn their keep. Knowing which carrier looks favorably at which profile is most of the job.

My commission comes from the carrier. It's built into the premium regardless of whether you go through me or go direct. You don't pay more to work with an independent broker. You just get someone who shopped around instead of someone who had one option.

The only thing you're giving up by working direct is the comparison.