Auto Insurance Brokers in 2024 (Insurance Role Explained)
Auto insurance brokers can help you connect with multiple insurance providers, offering expert advice and simplifying policy comparison. With insurance rates starting as low as $38 per month, car insurance brokers can help you find the best coverage. This guide explains how insurance brokers work.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
UPDATED: Nov 1, 2024
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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: Nov 1, 2024
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.
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Auto insurance brokers serve as intermediaries between customers and insurance companies, helping you navigate a vast range of policies and find the best options for your specific needs.
This article explores how insurance brokers provide tailored guidance, the types of brokers available, and tips for choosing the right one. It also covers the pros and cons of using brokers, helping you decide if this approach fits your auto insurance requirements. Read more about types of auto insurance to be informed.
Find the best auto insurance company with an auto insurance broker near you by entering your ZIP code into our free quote tool above.
- Auto insurance brokers offer rates as low as $38 per month
- Brokers help you compare policies for the best coverage
- Independent brokers work with multiple insurance companies
Car Insurance Brokers Explained
Auto insurance brokers have licenses to sell insurance in their state and work with customers to help them find the right company based on customers’ needs. Car insurance brokers can often sell other types of insurance, such as home insurance and car insurance, so customers can choose multi-policy auto insurance for discounts.
Car insurance brokers work with several different insurance companies, so they have an in-depth knowledge of policies and rates. If you purchase insurance through a broker, they will usually earn a commission from the insurance company, although a broker may also charge a fee for their services.
Types of Car Insurance Brokers
There is only one type of insurance broker, also known as an independent insurance agent. Brokers work with multiple companies, so there is more than one insurance option to choose from when working with a broker. You may choose to work in person with a broker or select an online insurance broker.
However, you may also see captive insurance agents labeled as brokers. Captive insurance agents may work with just a few related companies or only for one company. So if you are looking for an agent that works with multiple companies, avoid captive agents and make sure a broker is an independent agent.
Choosing Between Insurance Brokers
When looking for an auto insurance premium, choosing a broker also matters; it is important to do a bit of research beforehand to ensure you pick a reputable broker. When you search online queries like “car insurance broker near me” or “best insurance brokers near me,” dozens and dozens of options will likely pop up. It is important to narrow down your choices to the best few.
All brokers must be licensed by the state, so you can check your state licensing board to make sure that your broker is properly licensed. You should also check customer and consumer ratings to see if your broker has good ratings. One of the best places to check broker ratings is the Better Business Bureau, where you can view broker ratings as well as customer reviews and complaints.
Some brokers will earn a commission from the insurance company you chose and therefore won’t charge a fee, but some brokers may charge service fees if allowed to in their state.
This is because brokers are not allowed to sell you insurance from a company directly and depend on commissions and service fees. Instead, they will help you choose a company and coverages based on your needs, and then you will have to complete the transaction with the insurance company.
Learn more by checking out our guide: How to Save Money by Bundling Insurance Policies
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Deciding if an Insurance Broker Is Right for You: Pros and Cons
Using an insurance broker isn’t always the right choice for everyone. Some of the cons of using an insurance broker include the following:
- Using a broker can be more expensive. Because brokers may charge additional fees, you may find your cost higher than purchasing insurance on your own.
- Brokers may try to upsell you on insurance. Brokers earn a higher commission the more insurance they sell, so they may try to convince you to purchase more insurance than you need.
- It’s not always necessary to use a broker. If you are looking for a simple auto insurance policy and have a good driving record, you probably don’t need to go through a broker and can get quotes on your own.
Of course, there are several pros to using a car insurance broker, especially for those with more complex insurance needs.
- Brokers have insurance expertise. Brokers are familiar with different types of insurance, rates, companies, and more. They can offer helpful advice on what types of insurance to choose for your individual needs.
- Using a broker can save you time. Instead of spending hours researching companies and getting quotes, the broker will do all the hard work for you and lay out your options.
- They can help you adjust your policies over time. As your insurance needs change, your broker can help you adjust your coverage.
If you want help choosing the cheapest auto insurance companies and want someone to do the work of comparing companies for you, you may want to choose an insurance broker.
With insurance broker assistance, customers may find car insurance rates as low as $38 per month.Kristen Gryglik Licensed Insurance Agent
However, if your insurance needs are simple and you already have an idea of which insurance company you want, you can opt out of using an insurance broker.
Difference Between an Insurance Broker and an Insurance Agent
What are car insurance agents and brokers? The terms agents and brokers are often used interchangeably, but they are not the same thing. Brokers refer to professionals who work with several insurance companies, whereas agents usually refer to professionals who only sell from a few companies or only one company.
Comparison Between Insurance Agent and Insurance Broker
| Aspect | Insurance Agent | Insurance Broker |
|---|---|---|
| Business Model | Works for insurers | Independent or brokerage firm |
| Client Relationship | Aligns with insurer’s interests | Prioritizes client needs |
| Commission | Paid by represented insurers | Earns commission or fees from sales |
| Conflict of Interest | May favor specific insurers | Less biased, more options |
| Flexibility | Limited by insurer’s products | Flexible, can mix and match policies |
| Licensing | Requires agent license | Requires broker license |
| Objective | Sell insurer’s products | Find best coverage for client |
| Product Offering | Limited to specific insurers | Access to multiple insurers |
| Representation | Represents insurers | Represents clients |
| Service | Post-sale support | Advisory and claims assistance |
However, where most people get confused is when the terms captive agent and independent agent are used. A captive agent just refers to an agent who only sells for one company or just a few companies, whereas an independent agent is another term for brokers.
According to LearnandServe, both agents and brokers must be licensed and may specialize in a certain area of insurance, such as car insurance, or sell multiple types of insurance. All agents and brokers also have to comply with state laws and regulations regarding insurance.
Other Differences Between Agents and Brokers
So what are the other key differences between agents and brokers? The key differences are as follows:
- Only agents can complete the insurance sale. Brokers can’t complete the transaction between the customer and the company, whereas agents are licensed to sell to the customer directly from the company.
- Agents are representatives of companies. Agents sell on behalf of companies, whereas brokers are representatives of the customer rather than the company. Brokers work to find which company is best for their client and recommend a company.
Brokers help customers select a policy from multiple companies and recommend coverages, but the final sale depends on the customer completing the transaction with the company. Therefore, if you aren’t sure where to start, a broker may be a good choice for you. A broker may end up sending you over to an agent to complete the transaction if the insurance company you chose is agent-only for sales.
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— AutoInsurance.org (@AutoInsurance) August 2, 2024
On the other hand, if you know what coverages you need and what company you want to sign up with, you can go directly to an agent if you wish. Make sure you check what the best auto insurance companies for independent agents are if you are going through an agent-only insurance company.
Other Ways to Buy Car Insurance
Buying auto insurance through an agent or broker isn’t the only way to purchase a policy. Here are some of the other ways you can purchase car insurance:
- Directly from the insurance company. In most cases, you can purchase a policy directly from the company online or by phone.
- From an online cost comparison tool. Some free comparison tools will help you compare company rates and then direct you to the company to finish the transaction for your chosen company.
Some insurance companies don’t use agents, in which case you can purchase insurance directly from the insurance company if you wish to. Learn more on how to buy auto insurance online instantly.
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Choosing the Right Auto Insurance Brokers
If you find your insurance options to be overwhelming and don’t know where to start, using a broker can help you narrow down your options. Brokers can advise you on which coverages are right for you and which companies will best suit your needs. For more information about the differences between an auto insurance company and insuance brokers, keep reading,
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— AutoInsurance.org (@AutoInsurance) July 6, 2024
If you don’t find a good match after googling “car insurance brokers near me,” but you still want to see quote comparisons, using a rate comparison tool is another great option. Uncover affordable auto insurance rates from the top providers by entering your ZIP code below.
Frequently Asked Questions
What is a car insurance broker?
A car insurance broker helps you compare policies from multiple insurers, guiding you to the best options based on your specific needs and budget. Explore more details on how long does an accident affect your auto insurance rate.
What does an automobile insurance broker do?
An automobile insurance broker assists in finding tailored auto insurance policies by comparing rates and coverages from different providers on your behalf.
How does an automotive insurance broker help?
An automotive insurance broker simplifies choosing car insurance, providing access to various policies to ensure you get the most affordable and comprehensive coverage. Enter your ZIP code below to find the most affordable quotes in your area.
Why should I use an online auto insurance broker?
An online auto insurance broker allows you to compare quotes from different companies quickly, ensuring you get the best coverage without leaving your home.
How does Broker Direct car insurance work?
Broker Direct car insurance lets you work directly with a broker who connects you with insurers to find policies, often securing lower rates and better coverage options. Find out more about which cars have the lowest auto insurance premiums.
What services do secure health brokerages provide?
Secure health brokerages focus on helping individuals and families find health insurance plans that offer the right coverage at affordable monthly rates.
How can I become a car insurance broker?
To become a car insurance broker, you must complete state licensing requirements, pass exams, and gain knowledge in working with various insurance providers.
What is an autoplan broker?
An autoplan broker provides expert advice on selecting car insurance, helping you navigate different coverage options and ensuring that your policy meets your specific needs.
What are auto insurance broker companies?
Auto insurance broker companies work with multiple insurers, giving customers a wide range of policy options to choose from, ensuring the best possible rates and coverage. Access comprehensive insights if you can view your auto insurance policy online.
Why choose independent car insurance brokers?
Independent car insurance brokers offer unbiased recommendations, as they are not tied to any one insurer, giving you access to a broader selection of policies.
What are the different kinds of insurance brokers?
Some independent agents sell policies from multiple companies and are also known as brokers. Then there are captive agents; these agents may also be referred to as brokers but only sell from a few companies or only one company.
Are car insurance brokers worth it?
If you have complex insurance needs and need expert guidance on choosing coverages and companies, a broker can be helpful. However, you can usually shop for insurance independently if you know what you need.
Can you save money buying car insurance through a broker?
You may be able to save money shopping for auto insurance with a broker, as they can help you find a cheap rate. However, you may pay more if the broker charges a fee. Get further details on how to get auto insurance for the first time.
What are the cons of using a broker?
Brokers may charge a fee for their services and can’t sell you insurance directly. They can only advise you on what to purchase and then have you complete the policy transaction with the insurance company.
Is car insurance cheaper with a broker?
Not always, especially if the broker charges a fee. However, in most cases, the cost of buying directly from a company or buying through a broker will be about the same.
Who is the biggest insurance broker?
So, who is the biggest insurance broker in the world? Globally, Marsh McLennan is recognized as the largest insurance broker, providing extensive coverage solutions to clients worldwide. To learn more, explore our comprehensive resource on the largest auto insurance companies in the U.S.
What is the most reliable broker?
The most reliable broker depends on your needs, but firms like Aon and Willis Towers Watson are known for their dependable service and expertise.
Who is the global leader in insurance broking?
Marsh McLennan leads the insurance broking industry globally and is known for its broad range of services and expertise in risk management.
What are the top 3 brokerage firms?
The top three brokerage firms are Marsh McLennan, Aon, and Willis Towers Watson, offering comprehensive insurance solutions across multiple sectors. Stop overpaying for auto insurance and look for an insurance broker.
What is the most expensive car insurance group, as an auto insurance broker notes?
An auto insurance broker would typically point to high-performance sports cars and luxury vehicles as belonging to the most expensive insurance groups. These vehicles often come with higher monthly premiums due to the increased cost of repairs and replacement. Find out more by reading about the best auto insurance for luxury cars.
According to an auto insurance broker, which group tends to pay the highest premiums?
An auto insurance broker often finds that young drivers and individuals with high-value or high-risk vehicles pay the steepest monthly rates. Brokers can help reduce these premiums by finding competitive insurance options.
How would an auto insurance broker describe Group 10 insurance?
According to an auto insurance broker, group 10 insurance applies to moderately priced vehicles that are neither expensive nor cheap to insure. Brokers can help drivers in this group find affordable monthly premiums.
Which type of coverage is most crucial, based on recommendations from an auto insurance broker?
An auto insurance broker often stresses the importance of liability coverage, which safeguards against financial responsibility for damages caused to others. They can also advise you on additional types of coverage suited to your needs.
Who usually gets the lowest car insurance premiums, according to an auto insurance broker?
Auto insurance brokers typically find that drivers with clean records, low-risk cars, and safe driving habits receive the lowest monthly premiums. Brokers can assist in securing the best deals for these low-risk drivers. Enter your ZIP code below to find out if you can get a better deal.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
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.