Question: I have gotten a great quote from a new broker. It beats all the quotes I have received online and from other brokers. That is why I did not raise this issue with her when she asked me to check the quote, sign that I read and accepted and pay. I took the policy even though I suspect she is charging me for brokerage but I hate to be wrong.
Answer: It is likely that the fees are for arranging the coverage. Normally, agents are required to disclose the fees and get the clients signature to say that they have seen the fees and agreed. If you have checked other sources and this was the best quote you should not be much concerned with it.
Sometimes, it may be good and honest thing to charge fees for a broker. Generally, expensive companies offer higher commission rates to the brokers selling the policy and cheaper companies offer lower commission rates. So, a good broker may choose the cheaper policy for you because it is the right thing to do. But she would be losing out on the commissions and therefore she may choose to supplement it with fee charges.
I agree with the above points that you should pay extra for someone who worked hard and beaten the competition. However, some brokers can take this to an unpleasant level of charging you handling fees each time they do something for you. I don’t know anyone else but I cannot stomach being charged for changing my car on the policy or making adjustments to my address.
They may be only few bucks but I would rather it stayed in my pocket. You are already helping a broker by doing business with them. This gives them a chance to earn commission and they will keep earning it at each renewal. When they get greedy they should lose it all.