What is the difference between calling a direct writer, an agent or a broker?
A direct writer is an insurance company which sells its policies through their own employees or agents who only represent that company. You can call the company or its agent directly for a quote. An independent agent will represent several insurance companies and would be able to give a comparison quote for all the companies he/she represents. They work similar to, and may also be a broker, but may not charge a broker fee for their services. A broker basically works as your representative. For an agreed upon fee, the broker will look for insurance for you. The broker must tell you how much he/she charges for his/her service before you accept any quote. The broker does not represent any specific company, but will call other agents or companies for you to find the coverage you want. Why should I shop around for insurance? Under California’s rating law, each insurance company is allowed to calculate its own rates based on its past loss experience and its estimate of future costs. Since ea
