How is it that Fred Loya Insurance doesn't charge broker fees?

Question

There are two Fred Loya Insurance offices here where I live and they claim no broker fees, no commissions, just the premium.

How do they pay their agents??

I have heard they are scam artists, is that true?

Answer 1

They're a great agency, with several branches.

They get paid by the insuance company.  They don't charge broker fees or commissions to the clients.

Answer 2

I don't know very much about them but I question any company that advertises insurance payments on the scene of the accident.  You are so shaken up from the accident that you'll sign just about anything which waives their future responsibility if it turns out the repair is bigger than expected or if you are injured and don't know how badly yet.

The fees and commissions are just rolled into the premium amount.  Just like "no interest" promotions are rolled into the sale price of merchandise.

Answer 3

The Fred Loya Insurance company as a whole, is not a scam artist. Insurance is regulated by the state, so most agents tend to try to be "good". Though I'm sure a few slip through and can act unethical and possibly illegal. I have heard a few complaints about certain agent's offices that have had rude or less than knowledgeable staff. You can find this with any insurance company though, if you shop enough of them. Since I see that the insurance company pays the agent's salary- then the fact they advertise no broker fees or commissions means that it is not factored into your premium price. It is supposed to be for peace of mind that your not making their bonus check this month.