Insurance Brokers

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Daniel Robinson is a writer based in Greenville, N.C. with expertise in auto insurance, loans, warranty options and more. Away from the keyboard, Daniel spends time with his wife and son, plays guitar and obsesses over the Beatles and Baltimore Orioles.

RaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on travel, entertainment, household services and more.

RaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on travel, entertainment, household services and more.

Here’s a breakdown of how we reviewed and rated the top auto insurance providers

Our team looked at over 100 of the top auto insurance providers in the U.S., from national providers like USAA, Travelers and State Farm to regional providers like Erie Insurance.

To properly score each auto insurance provider, we looked at cost data, claims processes, customer review scores, industry standing, available discounts, coverages and add-ons.

Our team put in the time so you don't have to, evaluating cost data, reading customer reviews and researching companies to determine the most reliable options for coverage.

We asked thousands of customers to describe their experience with their auto insurance provider to understand how real customers feel about their insurers.

Buying insurance policies is a relatively straightforward process, but finding the right one for you is another matter. If you need multiple policies to cover different vehicles or dwellings or want a better understanding of the details of your policy, an insurance broker can help.

Our guide covers what an insurance broker is, how it can help you, other ways to buy car insurance and the best providers to consider.

• An insurance broker represents the interests of the buyer, while an insurance agent represents the insurance company employing them.
• Insurance brokers can help you learn more about your insurance policy and compare policies from multiple insurance companies.
• Insurance brokers must get state licensing and a broker bond before practicing.

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What Is an Insurance Broker?

An insurance broker is an independent insurance professional who works to find the best insurance policies for you. It can sell you any insurance you may need, including car, home, health, renters and life insurance.

Unlike insurance agents who work for a specific provider, brokers can sell you any policy on the market. If you need commercial insurance, they’ll help you find the best business insurance policies for your organization.

Insurance Broker vs. Agent

There are several differences between an insurance agent and a broker. While an insurance agent works on behalf of the insurance company they serve, brokers don’t affiliate with specific providers. This separation allows them to make your insurance needs their top priority.

Another difference is insurance agents earn their income from commissions from the insurance agency. Insurance brokers earn commissions on your policy and can charge a broker fee for their services.

When To Use an Insurance Broker

Consider using an insurance broker if:

• You have multiple homes or cars you want to insure
• You own a small business and need insurance coverage for risk management purposes
• You need someone to shop around for car insurance policies for you
• You want to buy from someone with no conflict of interest
• You want to better understand the details of your insurance options
• You want someone to go over the types of policies you might need and provide solutions to protect your assets

How To Get an Insurance Broker

There are several ways to connect with insurance brokers. You can find them online, through word-of-mouth recommendations or by visiting a broker’s office. When searching for an insurance broker, keep these questions in mind:

• How long has it been in business?
• Does it have any references?
• Is it licensed in your state?
• Does it specialize in working with individuals or with companies?
• Is the broker attentive to your coverage needs?
• If it works for an insurance brokerage, what is that brokerage’s reputation like?

Answering these questions will help you feel confident in the professional you choose.

How Are Insurance Brokers Paid

Insurance brokers make money through commissions and broker fees. Here’s a breakdown of each.

Insurance Commission

When a broker recommends a policy that you buy, the broker earns a commission from the insurance company that sold it. Many companies pay the broker a percentage of the premium.

Keep in mind that some insurance policies (specifically life insurance) earn brokers a higher commission during that first year. This commission may lead brokers who specialize in life insurance to recommend more coverage than you need. If you need life insurance, consider consulting a financial advisor for guidance on options you should look at. These professionals only charge a set fee for the services they provide.

Brokers can also make money on clients who decide to renew their insurance coverage after the initial policy expires. Renewals give brokers an incentive to help you maintain coverage. If you stop paying your policy within the first few years, they might have to pay their commission back to the provider. That’s why they focus on making sure the policies they recommend are truly right for you.

Insurance Broker Fees

Insurance brokers can also earn money through broker fees. Broker fees are up-front charges for the services a broker offers. Many states cap how much brokers can charge clients. While this might seem like a bad deal on the surface, insurance brokers can help you save enough money on your policies to offset this extra expense.

Ways To Buy Car Insurance

There are several ways to buy car insurance. You can purchase a policy online, call the provider on the phone, or visit an insurance agent in person. You’ll need to supply the following information:

• Personal details: This includes your name, address, birth date, Social Security number and occupation.
• Vehicle information: You’ll need the year, make, model, mileage and vehicle identification number (VIN) of the vehicles you want to insure.
• Driving history: This includes the number of miles you drive annually, whether you use the vehicle for business purposes and whether you’ve had any accidents or moving violations in the past three to five years.
• Coverage options: Do you need liability insurance to meet your state’s minimum requirements? Do you want full coverage with comprehensive and collision to meet your lender’s directives? You can even add extra coverage like emergency roadside assistance, gap insurance and more.

What Influences Your Car Insurance Rates?

Keep in mind that many factors can influence your car insurance costs. These include your:

• Driving history: If you have a clean driving history with no accidents, or traffic violations like speeding tickets and DUIs, you’ll pay less for car insurance.
• Location: Insurance carriers charge more if you live in an area where there are higher concentrations of uninsured drivers, vandalism, theft, traffic incidents and accidents.
• Marital status: Single drivers usually pay more for car insurance than married drivers.
• Gender: At certain ages, women often pay less for car insurance because they cause fewer fatalities than men. However, some states don’t allow gender to be used in rate decisions.
• Age: Teen and senior drivers can be more expensive to insure. California and Hawaii don’t allow insurers to use age to set rates.
• Vehicle: Your vehicle’s year, make, model and mileage also affect your insurance rates. If you have a high-value vehicle, it might cost more to insure it.
• Credit: In many states (but not all), providers can check your credit report to assign you a credit-based insurance score. If you have a lower credit score, you could pay more for coverage.

Some companies favor certain factors over others, which is why it’s best to get multiple quotes when shopping for car insurance. Comparing quotes will help you get the best possible price for the coverage you need.

Insurance Brokers: The Bottom Line

Insurance brokers can help individuals and business owners make sense of their insurance choices. Unlike independent agents who represent the insurance companies they work for, brokers focus on your needs. They work with you to learn more about what kind of insurance you’re looking for and then present solutions.

Brokers earn money through commissions and fees. While they might not be for everyone, they can help demystify some of the more confusing insurance policies on the market and save you time by doing the shopping for you.

Top Auto Insurance Recommendations

Before you buy a policy, compare insurance coverage and prices from multiple providers. This comparison will help you find the cheapest car insurance available. Here are two of the best carriers you may want to consider.