NLIC.org

Elsie Said:

How far back in your driving record do insurance agents look when determining your car insurance rate?

We Answered:

Hey Sugar, Honey Honey...The Archies say 3 years...If your violations are more than 3 hrs old, get with a co. that only looks back 3...and of course keep the driving clean.

Zachary Said:

what car ins do insurance agents purchase for themselves?

We Answered:

An agent only represents one company, he would purchase from the company he represents.
A broker, on the other hand, represents several companies. He will purchase the policy that is best for him, which may or not be what is best for any particular client.

Ian Said:

Any car insurance agents out there?

We Answered:

Each state uses different calculations. Many use NADA, Redbook, Bluebook or CCC. Or they do a market survey of vehicles in your area. They use this number then subtract any existing damage to your vehicle to come up with the ACV or Adjusted Cash Value.

Your best bet is to ask your claims handler and they can provide a specific answer to your state and policy.

Ronnie Said:

How do car insurance agents make money?

We Answered:

We make commission on the premiums that you pay. The commissions range from 8 to 20 % of the premium depending on the company and product that we sell. MY cut is less than that though because I am paid on salary plus commission. So I only make 30-50% of the commission earned.

So just some quick math...3500 hundred customers that pay 2000/year in premium with 15% commission would be $1,050,000 in commission..my cut would be $315,000/year. A LOT harder than it sounds though. ;)

Jeanne Said:

Can I switch car insurance agents?

We Answered:

Yes, it's dead easy. Just call the new agent, and tell them you want to switch over to them. You'll have to sign a "broker of record" letter, and when your policy renews, it will renew to the new agent.

Whichever agent your policy renews with, makes the money. They get money EVERY time your policy renews.

Vivian Said:

Car Insurance agents!?

We Answered:

Your own car insurance might cover you. (check it out first) or many credit cards provide that insurance coverage if you use your card to pay for the rental (check that too) If you are covered, decline the very profitable (for the car rental company) insurance.