Canceling Insurance Broker?

[Keebler Elf]

I'm thinking about canceling my auto insurance broker. I'm happy with my current insurance provider and to be honest I haven't seen any value from my broker in years. They don't even send me quotes anymore; I have to prod them to do it.

If I cancel with my broker, can I just renew normally with my insurance provider? Currently they send me renewal forms anyways so I don't see the point in keeping the middle man.

 

[GPIDEAL]

Better to ask them. I've also seen where an agent exists, but that the insurer directly bills us. There might be a rule to have an agent of record, but there are certain companies that don't use agents period (e.g. Federated Insurance).

P.S. Thread probably should read "Firing Insurance Broker?" he, he.

 

[TheDr]

In a word no it is not possible. It is to do with the way insurance companies are licensed by the FSCO in Ontario. There are two models of insurance sale. Direct where you deal direct with the insurer, the likes of State Farm etc are also direct as if you go to a State Farm agents office they only sell State Farm products. an insurance agent represents a single company and is most likely a direct employee of that company.

Or through independent brokers.. an independent brokers office has products available from multiple companies.

Every year at renewal time your brokers should be running quotes with all the companies they represent, more than likely their software will do that automatically, but if you are already getting the best rate they can offer there is not much point in providing quotes. Most broker sold policies are direct issued and billed by the insurer, it simplifies collection of premiums.

Bear in mind the insurance company is not your friend... a broker is a layer of separation between you and the company who can advise you on the best course of action to take.

 

[GPIDEAL]

In a word no it is not possible. It is to do with the way insurance companies are licensed by the FSCO in Ontario. There are two models of insurance sale. Direct where you deal direct with the insurer, the likes of State Farm etc are also direct as if you go to a State Farm agents office they only sell State Farm products. an insurance agent represents a single company and is most likely a direct employee of that company.

Or through independent brokers.. an independent brokers office has products available from multiple companies.

Every year at renewal time your brokers should be running quotes with all the companies they represent, more than likely their software will do that automatically, but if you are already getting the best rate they can offer there is not much point in providing quotes. Most broker sold policies are direct issued and billed by the insurer, it simplifies collection of premiums.

Bear in mind the insurance company is not your friend... a broker is a layer of separation between you and the company who can advise you on the best course of action to take.

State Farm is the other company. Thanks.

With respect to the 'friend' issue, I sometimes think the broker is more an agent for the insurance company than MY agent or representative. Yes, they should be your advocate, but it's the insurance company that provides them with the product and who rewards them. That Supplier-Vendor relationship can be a strong one.

 

[Occasionally]

If insurance brokers are like mortgage brokers, yes you can renew on your own. You don't need him to do it for you.

Just make note that if you formally cut him off, he probably won't want to deal with you again. So it really depends how buddy buddy you are in wanting to use him/her in the future.

 

[mrcheeks]

Just make note that if you formally cut him off, he probably won't want to deal with you again. So it really depends how buddy buddy you are in wanting to use him/her in the future.

I had a broker about 10 years ago. Around that time I switched to TD (an independent) and I am still with TD. The main reason being was I shopped around and TD gave me a better rate. I also found that my broker was getting slow to respond to some service requests I had. When I made the switch he basically said to deal with the company that he put me with. Fast forward to 2016 where I got a phone call from him out of the blue to try and see if I wanted to do business with him again. Ironically before the call I already heard thru the grapevine that some of his other side businesses were not doing that well. So really it is just a business for all sides involved (at least from what I experienced).

 

[Keebler Elf]

In a word no it is not possible.

Huh? I don't care who I deal with from the insurance company. I just want to deal with them directly rather than through a broker company. And it appears there's not a problem with that.

 

[dirkd101]

Yes you can.

I went with another broker after they ran quotes for me and I found I was overpaying. My broker wasn't passing on the new savings for me so I went with the other broker. A quick email letting them know I was done with them and they sent a form back which I signed that basically terminated our relationship.

 

[Mr610]

I remember the day that My agent would come visit me at least twice a year review the policies and shop for the best available service vs rate
I would of never switched my broker
Today, I spend more on insurance then ever before and have never met anyone of my brokers. It feels as if I am totally not being represented
Not sure if there are sales agents anymore just premium renewal people on staff?

I guess like other industries

 

[james t kirk]

Some brokers only work with one insurance company.

I had been using Monnex for years for all my insurance needs and they were great. Great in that their rates were very reasonable and increases were minimal, if at all. But Monnex only sold insurance that was provided by "Security National" and no other. Then it became "Meloche Monnex" and then finally "TD Meloche Monnex"

Everything went for a dump when TD took over the whole thing. Rates went through the fucking roof. Especially with home insurance. It was tragic what TD did. Not a single claim EVER on my home insurance and the rates doubled in 3 years.

 

[TheDr]

Just to clarify, there is nothing stopping you cancelling you insurance with your current broker and carrier and going to another.. You may get a cheaper rate through another broker as they have different companies available. Your rate with the same company through another broker should be the same, if it is cheaper check the coverages and deductibles. If you choose to cancel make sure to do it in writing with a signature, even at renewal. Phone call or email will not suffice, without the signature you risk your policy being cancelled for non payment.

What you cannot do is say I am insured with XXX company through YYY brokers. I want to cut YYY out and deal directly with XXX. That cannot happen as XXX is not licensed by the FSCO to sell insurance direct to the public.

 

[GPIDEAL]

Some brokers only work with one insurance company.

I had been using Monnex for years for all my insurance needs and they were great. Great in that their rates were very reasonable and increases were minimal, if at all. But Monnex only sold insurance that was provided by "Security National" and no other. Then it became "Meloche Monnex" and then finally "TD Meloche Monnex"

Everything went for a dump when TD took over the whole thing. Rates went through the fucking roof. Especially with home insurance. It was tragic what TD did. Not a single claim EVER on my home insurance and the rates doubled in 3 years.

TD Meloche Monnex still sell products underwritten by Security National Insurance Company.

I use TD as well to obtain savings from my association with a professional organization, however, I think I might be paying too much.

Next year, I'm definitely going to get quotes from CAA. You should try them too.

 

[GPIDEAL]

Just to clarify, there is nothing stopping you cancelling you insurance with your current broker and carrier and going to another.. You may get a cheaper rate through another broker as they have different companies available. Your rate with the same company through another broker should be the same, if it is cheaper check the coverages and deductibles. If you choose to cancel make sure to do it in writing with a signature, even at renewal. Phone call or email will not suffice, without the signature you risk your policy being cancelled for non payment.

What you cannot do is say I am insured with XXX company through YYY brokers. I want to cut YYY out and deal directly with XXX. That cannot happen as XXX is not licensed by the FSCO to sell insurance direct to the public.

I was going to add that whenever you cancel an insurance policy, please advise the incumbent in writing (there is a form somewhere in your policy to do this, or just do it in a letter, fax or possibly email with confirmation receipt). It is important to cancel when you switch to another company because you could be charged for "time on risk".

 

[shai]

You would have to find a broker that deals with your insurer, then it is just a simple form that the new broker will fill out.

However, given the legal stuff between the broker and the insurer, they cannot recommend a replacement broker. They will probably give you a list of local offices and let you make up your own mind.

As well ,most companies have a listing of their brokers by area on their websites.

 

[Keebler Elf]

So you have to have a broker to buy insurance from an insurance company? Really??? In my case my provider is Intact. I can't go directly to Intact and sign a policy with them?

 

[tribunus]

I had been using Monnex for years for all my insurance needs and they were great. Great in that their rates were very reasonable and increases were minimal, if at all. But Monnex only sold insurance that was provided by "Security National" and no other. Then it became "Meloche Monnex" and then finally "TD Meloche Monnex"

Everything went for a dump when TD took over the whole thing. Rates went through the fucking roof. Especially with home insurance. It was tragic what TD did. Not a single claim EVER on my home insurance and the rates doubled in 3 years.

Absolutely. I used to be with Meloche Monnex as well and they were considerably cheaper than everyone else, especially with home insurance. Then TD entered the picture and fucked everything up. They did the same thing when they bought MBNA and overhauled the credit card operation. I fucking hate TD......except for their stocks which have been good to me.

 

[Keebler Elf]

What's the "normal" rate of commission for brokers?

I'm paying 12.5% but don't know if that's high or not. It's built into the insurance price so I had to ask to see it.

 

[Galseigin]

TD Meloche Monnex still sell products underwritten by Security National Insurance Company.

I use TD as well to obtain savings from my association with a professional organization, however, I think I might be paying too much.

Next year, I'm definitely going to get quotes from CAA. You should try them too.

CAA gave me the best quotes for car insurance..

 

[Insidious Von]

I'm surprised it's taking you so long. While I was getting bondable an insurance broker made good sense.

I fully agree that the insurance company is not your friend, however I can't complain about how my policy covered me while I was incapacitated from my car accident. Especially when it came to rehabilitation. I have both auto and home with The Personal/Desjardins, they gave me a 20% discount the year after the accident. The collider's policy (thank God the schlepper had coverage) paid the deductible. However they gave me signals that if I didn't file a lawsuit my rates would go up. As of now the disability has been settled but the tort is pending.

And the Armenian lawyer my Russian Jewish firm assigned to me is a workhorse. I expected nothing less.

 

[Keebler Elf]

I have absolutely no issue with my insurance company. They were great when I had a claim.

My issue is with my insurance broker. I don't see any value but now I find out they're cut is 12.5% of my auto insurance. On $2K that would be $250... for what? All the work is on the front end to find your insurance company. Now I find year over year my broker isn't doing anything because my insurance company is already giving me the best rate out there. So I'm basically paying $250 for nothing.

If the province wants to cut auto insurance rates, this is a good scam for them to address. Cut out the broker middle man and let customers buy direct from the insurance companies.