Broker Fees

[halis]

Question for Independent Brokers:

Do you charge broker fees? I am learning that many in my area do. I have heard $30 on a new auto policy $50 on a new home. If you renew it they don't charge the broker fee on the renewal, but if they place your policy with a new carrier then they charge it again.

Also, do you think that broker fees are fair? I'd like to hear what people think about this and their reasoning.

 

[briko3]

If you were trying to weed out people because you're doing too much business, I'd say go for it. Unfortunately, that's not my situation.

 

[JCK818]

Heck yeah!!! Depends how much you are saving them. If I have the old statement in front of me and I see that I could save them 5-600 dollars annually, I'll charge a $100 minimum.

 

[halis]

You change the broker fee based on how much you save them? That seems a bit too close to the line for me. I am assuming you disclose your fees to them?

 

[Josh]

I'm pretty sure it's illegal to base it off the savings, at least in NY.

 

[syzmik]

I always charge min. broker fee of $75. I always start with $355 and work down.

 

[arnguy]

I knew an agent a few years ago who would send a bill for a fee if he made a face to face call and the prospect didn't buy. I don't know how many paid up.

 

[halis]

syzmik: You charge $75 for the household? What do you mean you start at $355 and work down?

 

[JCK818]

You change the broker fee based on how much you save them? That seems a bit too close to the line for me. I am assuming you disclose your fees to them?

I disclose everything. What I mean is, If I'm saving someone let's say 8-900 in premium annually, I will charge about $150-$200. With full disclosure.

 

[Evo0724]

Im currently employed and captive with a non standard
Company for now,And its typical for us to charge a $500 broker
fee depending on the premium and the customers driving
record.Overall were still saving them a load opposed to
them purchasing coverage with a preferred carrier like the
Auto Club or Allstate,Its easy to charge them if you present
it right.