What is a Car Insurance Broker?

A car insurance broker is an independent business person who may place business with any insurance company he has a contract to sell insurance. This person’s job is to find prospective clients and tries to match them up with an insurance company that will provide not only the cheapest auto insurance rates but also the most favorable policy options.

Should I get a car insurance broker?

All biases aside (since you can get a cheap rate from this site), a broker is a valuable resource as they can provide you with great advice as well as answer any questions. Keep in mind, your broker will also be your point of contact with the insurance company so it is a good idea to find a broker that provides great customer service. Another thing to be aware of is, a broker may not have relations with every insurance company so you should ask them which insurance company they can place your vehicle with.

How much does a broker cost?

Brokers vary on how much commission they cost. Keep in mind, most car insurance brokers will not charge you directly for their services. They usually will earn their commission from the insurance company they place you with. This could have the potential of biasing your broker to put you with the insurer that gives them the higher commission. To combat this you can ask your broker for the quotes from different insurance companies to see who has the lowest rate.

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