Indedependent Agency Fees! ???

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I Hear all the time about agencies charging clients fees. Coming from a captive environment I had never thought of this. Is each states laws different? When to charge? When not too?
 
I Hear all the time about agencies charging clients fees. Coming from a captive environment I had never thought of this. Is each states laws different? When to charge? When not too?

I've been curious about this too. I'm also a captive agent and never charge fees to clients. However, there are indy agents in town who charge a $5 fee for paying in cash, $20 to change a vehicle on a policy, $3 to print off a duplicate insurance card in middle of a term, etc..
 
$20 to change a vehicle on a policy

that's crazy! I couldn't imagine what some of my customers would say to me if I told them I'm charging 20 extra for switching their vehicle. They sure wouldn't be my customer any longer!

I personally have never charged fees. I don't see how other agents can do that and still be price competitive. Maybe in other insurance markets, but not auto insurance.
 
IMHO (in my humble opinion) in a commercial lines shop, fees can be in lue of commissions AND can charged when an account needs a lot of service. I don't know of any hard and fast rules in this space, in my opinion ( yet again) it is a balance of certain considerations, some being, the market place and the overhead associated with providing excellent service to the client. Hope this help and I encourage other commericial folks to share their experiences.
 
Fees are a very common part of running an Independent Ins agency is the states that allow it. However I have seen agencies grow millions of dollars in WP by dropping Fees and being the only agency in town not charging.
 
Call an big P&C shop in CA and Ask about Fees. It will blow your mind how much they charge on some things. Call a TX agent too.


I have seen:
Policy Fees (In all its forms)
Id card fees
Rewrite fees (After X Rewrites we start charging)
Endo Fees
 
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In AZ only allowed to fee commercial, and I do. I fee surplus lines accounts with premiums below $2500. Often, these risks take more time to place, take more time to service and can drive up your E & O premiums. If I provide third party financing, I will also add points to the interest rate.
 
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