Slipping a little on top of auto insurance premiums is an old trick in the book. Even brokers can charge it for arranging the coverage or servicing it. Normally, they are required to disclose the fees and get the clients signature to say that they have seen them 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 and cheaper ones lower. So, a good broker may choose the cheaper vehicle insurance 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 fees.
Most people would be all right with paying little extra for someone who worked hard and beaten the competition. However, some of them can take this to an unpleasant level of adding handling fees each time they do something for you. It is hard to stomach being charged for changing the car on the policy or making adjustments to the address.
They may be only few bucks but you would rather it stayed in your pocket. You are already helping 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 all.
At times another company can take over the underwriting or packaging process and charge customers for this service. They can be surprisingly effective in coming up with effective packages and affordable prices even after their costs are added. It is like management services and it can work well.
There are so many different arrangements in the insurance industry. As long as you make sure that you don’t spend more than you should it may not matter. If you haven’t got any quotes for years and find that you have been paying too much all along whose fault is that? Always make sure to compare a few offers and select the best one for your circumstances.
While going through this process of checking you can also look to see if there are unusual additional costs. The one big problem with them is that they are getting creative for their benefit and they may be keen to find other ways of milking policyholders, rather than looking for ways of cutting costs for them.