I just had an eye opener.

I traded in my bike for a new street glide on Dec 31.

My insurance carrier was closed (AAA) - and I was not aware that unlike cars, you CANNOT tell them about a change after you pick up the new vehicle, or you'll have no coverage. So basically I was out of luck to take the new bike unless I found other insurance.

The dealer put me in touch with their agent and I did establish insurance through them (their rate turned out pretty much the same through Progressive).

But what killed me was that I was charged a one time $150 fee for the broker - taking on a new client. He claims it covers their checking all the different carriers to find the best deal. I had never heard nor experienced that before in many years of riding. In my opinion, they make their money on the commission - that is what covers their 5 minutes of work.

Has anyone else had to pay a broker fee to establish yourself with a new agency?

I was really ticked about this when I found out (and it wasn't clear that day). I fell totally ripped off.

 

Congratulations on your new bike!!

I'm sorry to say you were ripped off! A $150 broker fee is highway robbery. Searching for a good policy for their customer is what they do to get their commission for writing the policy. That is like the guy in Best buy charging you to help you select your TV. Total B.S.!!

Please let everyone know who this wonderful broker is so that we know where not to go...and to tell our friends where not to go either.

What a crook.

Let us know who the dealer is too. They are in bed with this crook too.

By the way, most companies automatically cover you for 30 days if you have a policy with them. I can not speak to AAA, as I do not have them. Oh, and to make matters worse, you could have gone on-line at the dealer and gotten coverage through Progressive without any help from a broker.

Again, those folks (the dealer and the broker) should be ashamed. If the dealer didn't know about the scam, you should tell them. They should never refer a customer (or a stranger for that matter) to a broker like that.

This kind of stuff, as you can tell, really makes me angry. We all try to do our part to buy American, to support local business, and what do we get in return? This crap! We have to weed folks like that out of business.

 

You were TOTALLY RIPPED OFF! That is just pure BS! I would almost bet that most of that $150 went right into the Dealer's hands. Yes, please share with us WHO these CROOKS are so we all can AVOID!

 

Thank you for the feedback. This has certainly been an eye opener for me.

So I've done a lot of legwork over the past 2 days and learned a bit in the process. I am from the East Coast and only moved to CA a few years ago, so all of this was unknown to me.

So in CA, the insurance regulations are different than in other parts of the country. CA is one of the very few States that allow a broker to charge a broker's fee for insurance - so long as it is disclosed. However, CA does not allow varying rates for the same policy. In other States, the carriers offer different "tiers" through brokers - some of which are the same policy just marked up in price for the broker to make money. So while it is hidden, many people pay premiums EVERY YEAR - and are not aware of it.

In any event, I spoke at length with the brokerage. I was actually impressed with his professionalism. He has been insuring motorcycles for over 25 years and he was quite reasonable. He explained the reason he charges a one time broker's fee is to support what he does as a broker. He maintains real overhead and long hours to augment the insurance company. For instance, he said he will often be contacted by a stranded biker who is on hold for 25 minutes with the insurance carrier - and he will handle the issue at 3AM. Or in this case, he was open at 6 PM on New Years Eve to put coverage in place.

He also explained that what happens a lot is that customers come to him to get insured out the door, then shop on the internet and change companies for a $20 premium savings. So in order to cover some of his costs, he charges a one time fee to cover the "internet shopper" types. I actually understand his thinking ... I have had several businesses and it is really frustrating when customers use the value that you offer (e.g. a retail showroom), and then go off and by the cheapest they can find through an internet retailer who doesn't have overhead. I have always believed in trying to support "the local guy" that we rely upon - so long as there is a REASONABLE premium to do so.

In the end, he doesn't want me to be upset or feel ripped off. He said he was willing to refund the fee to me. So he is being a stand-up guy.

The bottom line is it was a lesson learned for me. I was not aware that a broker's fee was allowed (being from the East Coast), and I was under the gun in terms of time at the dealership and didn't read the paperwork closely enough (it was 5:30 PM on New Years Eve and I was extremely late). That part was my fault. I've certainly learned from that.... I am usually good about carefully checking things I'm signing, but I let my guard down in this instance.

 

Never paid a brokers fee here in NJ. My progressive policy works similar to my automotive policy for new / add on vehicle insurance. I have 30 days grace to report adding a vehicle to the policy. This allows a spur of the moment purchase and ride away of a new vehicle. I'll usually just call the insurance company while filling out the paperwork at a dealer to add the vehicle. Most of these companies are 24/7 nowadays!

 

I had AAA motorcycle insurance. Their business office was closed after 2PM on 12/31. I called their emergency accident line- who confirmed what the dealer told me - that unlike an automobile, you would NOT have coverage on a new bike unless set up ahead of time.

Unfortunately for me, that person was WRONG. I spoke with AAA insurance office when it was back open this week, and in fact I would have been covered. But the information I had been given on 12/31 said no.

It was a frustrating day LOL.

 

in ohio. i have state farm.. me and my wife change vehicles all the time, cars, truck, bikes, boats.. every time, we just make the trade, then call it in a day or two later.. i always heard they have to cover you for so long (10 days or something??)

 

Honestly. Decide if the service he provided you on new years eve at whatever time of day it was is worth the cost incurred. If he is willing to give it back I guess it's up to you to decide if you want it.
It's on you now. What's his time,experience and service worth to you.

 

Although he offered, I actually told him I don't want a complete credit back. The whole thing was a big surprise because fees are not legal on the East Coast, but I also understand his point of view. We are going to reach a compromise - and I'm ok with that.

As I said previously, I believe in paying for the value you receive, and he was open and able to help. But at the same time, I will be a long-term customer and he will make ongoing money on the policy, so I feel a compromise is appropriate and fair to all.

 

I still think he Burned you