Best Auto Insurance Companies That Offer Auto Insurance Brokers (2024)
A car insurance broker serves as an intermediary between the insurance company and the customer. For individuals with complex insurance situations, a broker can help them get the coverage they need. Not everybody needs an insurance broker, but working with a broker could be helpful if your situation is more nuanced.
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Brandon Frady
Licensed Insurance Producer
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Producer
UPDATED: Oct 13, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 13, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Car insurance brokers help match customers with the right insurance coverage
- It does not typically cost more to employ the help of an insurance broker
- Hiring a broker isn’t right for everyone and is more suited for customers with complex needs
Shopping for car insurance can be a pain. With many coverage options and policies available, choosing the right policy for you may be challenging. Car insurance brokers can help eliminate some of this stress.
Working with a car insurance broker can be very helpful. Brokers are especially useful if you have complex coverage needs. However, hiring an insurance broker is not for everyone, so read on to learn whether or not a broker is right for your situation.
Before selecting a car insurance broker or company, you should compare quotes. You can determine what kind of car insurance broker is right for you by viewing quotes side by side.
What are car insurance brokers?
The insurance industry is complicated and takes many years to fully understand. A lot of research and training goes into becoming an insurance professional. Car insurance brokers are insurance professionals that help connect customers with appropriate policies.
Car insurance brokers act as a bridge between customers and insurance companies. They have already undergone the extensive training required to understand the nuances of insurance coverage. Insurance brokers might be self-employed or employed by an insurance company.
When your insurance needs are more complicated than average, insurance brokers can help you navigate your options. Typically, it doesn’t cost more to purchase a policy through an insurance broker. Sometimes you might have to pay an additional fee, but the amount is usually reasonable.
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What are the different types of insurance brokers?
There are two main types of insurance brokers that you might be able to work with when seeking a policy. Independent car insurance brokers are usually self-employed, while an auto insurance company employs captive agents.
Independent Car Insurance Brokers
Independent car insurance brokers run their own businesses. They help insurance seekers shop around for a policy from multiple insurance companies. Generally, if you haven’t decided on a specific insurance company, you should work with an independent broker. It’s easy to find an independent car insurance broker near you, as they typically operate in a small business setting.
Independent brokers are knowledgeable about a vast array of coverage options. They know the ins and outs of various car insurance policies from different companies. They make it especially easy to compare coverage options side by side.
Captive Agent Brokers
A car insurance company employs captive agents to sell only that company’s policies. A captive agent may work with one company or a group of companies under the same umbrella.
Working with a captive agent greatly limits your policy options. If you are interested in comparing quotes from multiple companies, then a captive agent won’t be able to assist you.
If you already have a favorite auto insurance company, then a captive agent would suit your situation. They have more detailed knowledge of a company’s specific policies when compared to an independent broker. And they can help you build the right policy with your car insurance company.
Is hiring a car insurance broker more expensive?
An insurance broker’s salary is a combination of two main factors. Generally, brokers get paid a commission for policies they sell. This commission is a set percentage of the policy rates. The more expensive the policy sold, the more money the broker receives.
A broker’s commission is already a part of the final rates of a policy. This structure indicates that you will not pay more for a policy purchased through a broker. Even if you buy directly from an insurance company, the rates will be the same. The truth is that purchasing a policy directly from the company still involves an agent who gets a commission. When you call an insurance company to buy a policy, the individual on the phone is likely a captive agent.
It is common for very reputable insurance brokers to charge a brokerage fee. This inexpensive fee can serve as a token of goodwill that their recommendations will not be money – motivated.
Sometimes, brokers will charge a brokerage fee. Brokerage fees are heavily regulated and are usually very affordable. You are more likely to be charged a brokerage fee if you purchase a policy from an independent broker.
The overall price of a policy determines a broker’s commission. The higher the rates, the more money a broker will earn. You may be wondering if a broker will try to upsell you on a policy. Brokers who consistently upsell their customers may suffer a bad reputation.
For independent brokers, word of mouth is essential. If they consistently upsell their customers, then they could lose business.
Do you need to hire a car insurance broker?
Not everybody needs to employ a broker when shopping for car insurance. In most situations, auto insurance needs can be rather simple. If you only own one or two standard vehicles and do not have a unique driving history, you probably won’t need to hire a car insurance broker.
There are circumstances in which it is recommended to work with a broker. Sometimes people have complicated insurance needs that are difficult to navigate alone.
Here are a few situations when hiring an insurance broker makes sense.
Large Families
You might want to work with a broker if you have a large family with many drivers and vehicles. A broker can help you find reasonable rates on insurance, especially if many of the drivers are under 26. A car insurance broker may also be able to hook you up with different promotional deals to save money.
Car Collectors
Additionally, an insurance broker can help you find the best policy if you collect cars. Vintage and specialty cars come with unique insurance needs. For example, perhaps they are more expensive to repair. Maybe you rarely drive them and only require partial insurance. An insurance broker can evaluate your situation and recommend policies that provide the coverage you need.
Small Business Owners
If you own a small business that operates a vehicle fleet, then you should definitely speak with an insurance broker or agent. The insurance needs of small business owners are much more complicated than those of individuals. Not only do you need to protect multiple vehicles, but you also have to insure the drivers you employ. Working with a broker will help you ensure that your business has the legal protection it needs.
Other situations benefit from the help of an insurance broker. If you struggle to find the right coverage, then there is no harm in consulting with a broker. Some insurance agents may offer a free evaluation which can help you determine if you need additional help.
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Should you hire a car insurance broker?
Car insurance brokers help customers select the right policy to fit their needs. Not everybody needs to work with a broker, but you might benefit from their services if you have more nuanced insurance needs. If you want to compare different insurance companies side by side, you should only work with independent car insurance brokers. They can evaluate your situation and determine which company’s policy works best.
Before deciding on a single company or broker, you should compare quotes. By using a free comparison tool, you can get a better idea of the rates you’ll pay from different companies. Comparing auto insurance quotes can help you decide whether an independent or captive broker is right for you.
Frequently Asked Questions
What are auto insurance brokers?
Auto insurance brokers are professionals who act as intermediaries between insurance companies and individuals or businesses seeking auto insurance coverage. They help clients navigate the insurance market, compare policies, obtain quotes, and select the best coverage options based on their specific needs.
Why should I consider using an auto insurance broker?
There are several benefits to using an auto insurance broker:
- Expert advice: Brokers possess in-depth knowledge of the insurance industry and can provide personalized guidance to help you find the most suitable coverage.
- Time-saving: Instead of individually researching multiple insurance companies, brokers can do the legwork for you, gathering quotes and policy information.
- Wide selection: Brokers typically work with multiple insurance companies, giving you access to a broader range of coverage options.
- Cost-effective: Brokers can help you find competitive rates by comparing policies from various insurers.
Which auto insurance companies offer auto insurance brokers?
While auto insurance brokers work independently, they collaborate with multiple insurance companies to offer their clients a wide range of coverage options. Here are some reputable auto insurance companies known for working with brokers:
- State Farm
- Allstate
- Progressive
- Geico
- Farmers Insurance
- Nationwide
- Liberty Mutual
- Travelers Insurance
How can I find an auto insurance broker?
There are several ways to find an auto insurance broker:
- Referrals: Ask friends, family, or colleagues if they have worked with any reputable brokers and if they can recommend someone.
- Online directories: Utilize online directories or databases that list licensed insurance brokers in your area. You can often filter results based on location and specialty.
- Professional associations: Check if there are any local or national insurance broker associations that provide directories or resources for finding licensed brokers.
Once you have identified potential brokers, it’s a good idea to schedule consultations or interviews to ensure they are a good fit for your needs.
How do I choose the right auto insurance broker for me?
Consider the following factors when selecting an auto insurance broker:
- Experience and expertise: Look for brokers with significant experience and a strong understanding of auto insurance.
- Reputation and reviews: Research the broker’s reputation by reading reviews and testimonials from previous clients.
- Licensing and credentials: Ensure the broker is licensed to operate in your state and holds relevant professional credentials.
- Communication and responsiveness: Assess how well the broker communicates and responds to your inquiries during initial interactions.
- Range of services: Evaluate the breadth of services the broker offers, such as claims assistance and ongoing policy management.
By carefully considering these factors, you can choose a broker who best aligns with your needs and provides the level of service you expect.
How do auto insurance brokers earn money?
Auto insurance brokers typically earn their income through commissions from insurance companies. When a client purchases an insurance policy through a broker, the insurance company pays the broker a commission as a percentage of the premium. The commission rates can vary depending on the insurance company and the specific policy.
Can auto insurance brokers help with claims assistance?
Yes, many auto insurance brokers provide claims assistance as part of their services. They can guide you through the claims process, help you gather the necessary documentation, and act as a liaison between you and the insurance company. Brokers can provide valuable support during the claims settlement to ensure you receive the coverage you are entitled to.
Are auto insurance brokers only useful for finding personal auto insurance?
No, auto insurance brokers can assist with various types of auto insurance, including personal auto insurance, commercial auto insurance for businesses, and specialized coverage for specific vehicles such as motorcycles, RVs, or classic cars. Brokers have expertise in navigating the insurance market for different types of auto insurance needs.
Can I use an auto insurance broker if I have a bad driving record or previous claims?
Yes, auto insurance brokers can be particularly helpful if you have a bad driving record or previous claims. They have knowledge of insurance companies that specialize in providing coverage to individuals with less-than-perfect driving histories. Brokers can help you find companies that are more lenient or offer competitive rates despite your driving record.
Can I switch insurance brokers if I’m not satisfied with the one I currently have?
Yes, you have the freedom to switch insurance brokers if you are not satisfied with the services provided by your current broker. Before making a switch, it’s advisable to communicate your concerns with your current broker to see if they can address the issues. If you decide to switch, make sure to notify your new broker and provide them with the necessary information to continue managing your insurance policies effectively.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Brandon Frady
Licensed Insurance Producer
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Producer
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.