Can Insurance Brokers Give You Extra Discounts?

I just had a talk with a friend of mine. He told me that when he bought his new house, the real estate agent give him a rebate from the commissions that he earned on the transaction.

Then my friend asked me if I ever do the same thing, as an insurance broker, and give people rebates out of the commissions that I make.

Here’s the answer: NO!

Brokers can’t give discretionary discounts

I couldn’t do that, even if I wanted to; it goes against the terms of the Registered Insurance Brokers Act (RIB Act).

From the RIB Act, misconduct includes:

“Directly or indirectly making or attempting to make an agreement as to the premium to be paid for a policy other than as set forth in the policy, or paying, allowing or giving, or offering or agreeing to pay, allow or give, a rebate of the whole or part of the premium stipulated by the policy or any other consideration or thing of value intended to be in the nature of a rebate of premium to any person insured or applying for insurance in respect of person or property in Ontario, but nothing in this paragraph shall be construed to affect any payment in the nature of a dividend, bonus, profit or savings that is provided for in the policy.”

So ya, I wouldn’t be able to give you any extra discounts (No insurance brokers can) – The only discounts I can give are the discounts that the insurance company gives. Those include things like multi-vehicle or multi-policy discounts. Nevertheless, I do have contracts with insurance companies that offer competitive rates, so be sure to call me for a quote.

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