What companies offer car insurance brokers?

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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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: May 5, 2022

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Things to Remember

  • 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.

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