The California Guide to Automobile Insurance

Did you know that if you buy an auto insurance policy from a California insurance broker that the broker is required by California law to give you a free pamphlet called the Consumer Guide to Automobile Insurance?

What’s in the pamphlet? The pamphlet contains five tips to help you buy auto insurance in California.

If your working with a California auto insurance broker, be sure to ask for the pamphlet. You can see the California Guide to Automobile Insurance here.

Some important highlights:

What is difference between an insurance company and an insurance broker?
The California Guide to Automobile Insurance outlines the difference between an insurance broker and an insurance company. An insurance company is an entity that provides an actual car insurance policy. If you make a claim, the insurance company will handle it.

An insurance broker is a third party that works with you and insurance companies. Many times insurance brokers in California try and help you find a better deal on your auto insurance by helping you get multiple quotes.

Most automobile insurance brokers charge a fee for their service. By law, california insurance brokers are required to disclose their fees to you. If your working with a broker and you have bot seen the fees associated with the service, you should ask to see them asap.

Another important law on broker fees: To charge a broker fee, a broker must have you sign a broker fee agreement, and must give you a special broker fee disclosure. You should request copies of both of these documents.