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Old 05-03-2013, 04:30 PM   #20
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Join Date: Jul 2009
Location: Durham Region
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Originally Posted by ericdalinda View Post
if an insurance company decided not to pay your claim its either that you did not have coverage for said incident. Many cases of insurance fraud and they found out about it. Why in gods name will YOUR broker step in to pay a $700,000 claim when the insurance company is not covering you.

your broker will not be doing that.

is this all what your broker is telling you that he has "power" to "talk to" those insurance companies?

and brokers dont have any SWAY AT ALL...literally nothing... there might be the off hand chance he might know 3 adjusters out of the 45 or so that are out there for the companies that he represents. but the adjuster is not going to put his job on the line because hes friends with a guy in sales.
Direct writers and agents are going to insist that insurance is "black and white". I won't say they are entirely incorrect as, from their side of the business, I'd imagine that is generally how it goes. Eric, you'd be forgiven to assume a broker works under the same binary system. Fact is, the broker's world is a little more grayscale. (source: I've been a broker for 10 years)

I agree that some rules are written in stone. However, there are others that have room for interpretation. In instances where those apply, I see a great advantage in having a knowledgeable, neutral advocate in your corner to weigh in when need be rather than depending exclusively on an employee who is on the payroll of the same company cutting the claim payment cheque, to treat you properly.

The sway we have is not who we know but what we know.

In my office alone I have hundreds of examples of our "sway" changing the outcome of claims to the benefit or our clients and we are adding more every day. This list is literally, ENDLESS...

For an auto claim; I've argued against the fault determination rule applied to a loss and had an at fault claim changed to a not at fault. It saved my client $15K over the course of the next few years. I didn't personally know the adjuster, she didn't owe me a favour, but I knew the other determination rules that could be considered and had an example of a similar claim where that same adjuster used the rule I felt should apply.

Originally Posted by ericdalinda View Post
to each his own.. a broker works like a real estate agent, he gets paid when you pay the company of course the jacked up rate because you didnt shop your self.
Originally Posted by noid View Post
Often insurance brokers deal with insurance companies that only deal with brokers. Those companies reduce their overhead cost by not dealing with the customer directly.
As Noid points out; BOTH direct writers and broker channel insurance companies 'pay' for customer service staff; either through payroll or commissions. This doesn't mean one will always be cheaper then the other. I'm certainly not saying brokers are always the cheapest. It goes both ways.

It's also worth mentioning that a majority of companies only do business through either brokers or direct/agents. few do both. Also there are roughly 3 times as many broker channel companies. So if you aren't calling brokers, you are missing out on 3/4 of the quotes available to you.

Originally Posted by noid View Post
It is also no secret that brokers get special rates because of the volume they drive to the insurance companies.
Regardless of the volume from any one brokerage, the rate offered by company XYZ would be identical from brokerage to brokerage. Legally it has to be or companies get fined. (for personal lines, commercial is a different animal)

Sorry for the hijack, just wanted to clear up a few misconceptions.

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