Do Insurance coverage Brokers Actually Take 80% of Your Premium?

Have you ever seen on-line or heard the misinfoirmation that insurance coverage brokers pocket 80% of your premium?

And are you now questioning whether or not working with a dealer is simply throwing cash away in comparison with going straight to an insurance coverage firm?

Right here’s the reality: that 80% quantity is wildly deceptive. On this article, you’ll be taught what brokers truly receives a commission, why that compensation exists, and the way brokers usually save you cash—particularly at renewal time.

The place Does the 80% Declare Even Come From?

A couple of social media personalities have unfold the concept that insurance coverage brokers take as much as 80% of your premium. However what they’re not telling you is that this:

That quantity sometimes refers to sure one-time life insurance coverage commissions, to not your residence, auto, or enterprise insurance coverage premiums—and even then, it doesn’t mirror precise earnings after service prices, taxes, and overhead.

What Insurance coverage Brokers Truly Earn

Let’s clear it up: brokers sometimes earn between 11% and 15% of your premium. This isn’t only for promoting you a coverage—it covers:

12 months-round buyer assist
Claims help
Annual coverage evaluations and remarketing
Entry to a number of insurance coverage carriers
Native, customized service

And sure, that fee retains workers employed in your neighborhood. We’re not faceless name facilities—we’re your neighbors.

📊 A fast breakdown of your $1,000 premium:

Insurance coverage firm: ~$880
Dealer compensation: ~$120

Why a Dealer Can Truly Save You Cash

I began as an agent in 1980—promoting for one firm solely. If charges went up or protection modified, you have been caught.

That’s why I turned a dealer. Brokers aren’t tied to at least one firm. We store 10 or extra carriers to search out the perfect deal, particularly at renewal time when your premium would possibly unexpectedly soar.

Brokers = 1 choice.
Brokers = A number of.

Which one provides you extra leverage?

Is a Dealer Proper for Everybody?

Not all the time. When you already get reductions for bundling via a direct insurer, or if you happen to’re loyal to at least one firm irrespective of the speed, working instantly could go well with you simply fantastic.

However if you’d like flexibility, worth comparisons, or somebody to deal with the messy elements of insurance coverage for you—brokers are constructed for that.

Conclusion: Let’s Get You Higher Protection for Much less

Now that you realize brokers don’t take 80%—and in reality, usually provide help to keep away from overpaying—what’s subsequent?

When you’re bored with price hikes, restricted choices, and ready on maintain when issues go flawed, we may also help.

Allow us to evaluate your coverage throughout a number of carriers. You could be stunned what you’re lacking.

The workforce at Vargas & Vargas Insurance coverage might be reached at 617-298-0655 that will help you get readability, management, and confidence in your protection—year-round.