Have you ever seen on-line or heard the misinfoirmation that insurance coverage brokers pocket 80% of your premium?
And are you now questioning whether or not working with a dealer is simply throwing cash away in comparison with going straight to an insurance coverage firm?
Right here’s the reality: that 80% quantity is wildly deceptive. On this article, you’ll study what brokers truly receives a commission, why that compensation exists, and the way brokers usually save you cash—particularly at renewal time.
The place Does the 80% Declare Even Come From?
A number of social media personalities have unfold the concept that insurance coverage brokers take as much as 80% of your premium. However what they’re not telling you is that this:
That quantity usually refers to sure one-time life insurance coverage commissionsto not your house, auto, or enterprise insurance coverage premiums—and even then, it doesn’t replicate precise earnings after service prices, taxes, and overhead.
What Insurance coverage Brokers Truly Earn
Let’s clear it up: brokers usually earn between 11% and 15% of your premium. This isn’t only for promoting you a coverage—it covers:
- Yr-round buyer help
- Claims help
- Annual coverage evaluations and remarketing
- Entry to a number of insurance coverage carriers
- Native, customized service
And sure, that fee retains employees employed in your group. We’re not faceless name facilities—we’re your neighbors.
📊 A fast breakdown of your $1,000 premium:
- Insurance coverage firm: ~$880
- Dealer compensation: ~$120
Why a Dealer Can Truly Save You Cash
I began as an agent in 1980—promoting for one firm solely. If charges went up or protection modified, you had been caught.
That’s why I grew to become a dealer. Brokers aren’t tied to 1 firm. We store 10 or extra carriers to search out the most effective deal, particularly at renewal time when your premium would possibly unexpectedly bounce.
Brokers = 1 choice.
Brokers = A number of.
Which one offers you extra leverage?
Is a Dealer Proper for Everybody?
Not at all times. In the event you already get reductions for bundling via a direct insurer, or for those who’re loyal to 1 firm regardless of the speed, working instantly could go well with you simply high-quality.
However if you need flexibility, worth comparisons, or somebody to deal with the messy components of insurance coverage for you—brokers are constructed for that.
Conclusion: Let’s Get You Higher Protection for Much less
Now that you realize brokers don’t take 80%—and actually, usually allow you to keep away from overpaying—what’s subsequent?
In the event you’re bored with fee hikes, restricted choices, and ready on maintain when issues go incorrect, we might help.
Allow us to examine your coverage throughout a number of carriers. You may be shocked what you’re lacking.
The crew at Vargas & Vargas Insurance coverage might be reached at 617-298-0655 that can assist you get readability, management, and confidence in your protection—year-round.
➡️ Subsequent Step:
Interested by how switching from an agent to a dealer truly works?
Watch: Is Your Insurance coverage Agent Or Dealer Working For You?
