Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: May 28, 2019

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Is there such a thing as an auto insurance broker, and how does such a person differ from an auto insurance agent? Car insurance agents work for insurance companies, and as a result, represent the companies that employ them.

An agent may actually be a franchise owner, or he may be employed by a franchise owner.

On the other hand, auto insurance brokers work to find insurance for their clients. They are not employed by car insurance companies. They pass the business on to car insurance agents.

Be sure to enter your ZIP code into the FREE tool above to easily compare auto insurance quotes!

Reasons to Hire an Auto Insurance Broker

There are advantages to hiring an auto insurance broker to find the best insurance for you, rather than calling insurance companies yourself to ask for quotes:

  • A customer does not pay a broker to insure his car, so a broker does not owe an insurance agent anything.
  • Brokers make their money on commissions from customers, not money from car insurance companies.
  • Even though they do not make their money from insurance companies, brokers might know agents better than you and be able to get a better deal than you could on their own.
  • Brokers can save a customer valuable time, time customers could use for other things.

A Broker Can Get the Best Deal for You

After you pay a broker a commission yourself, or your company pays it, the broker can shop with several companies for the best rates.

You will then have to pay an insurance agent separately to cover your car.

  1. An agent writes policies for one company only
  2. A broker is an independent contractor and does not represent only one company
  3. An agent can only offer the policies and prices offered by his company
  4. A broker can offer the best deals from among a group of companies.

Auto Insurance Brokers may be a Good Idea if You Don’t Move Often

Usually brokers have to know all the regulations related to the companies they represent and must be trained.

Usually, however, they can only usually only sell in one state. That is why some businesses and individuals who move often use agents instead.

What Agents Will not Do that Brokers Will

A car insurance agent can sometimes get discounts for clients, but he will not investigate the prices of other brands, because he does not represent other companies.

A broker might get better discounts by checking the rates of many companies.

It Might Be Worth the Money to Hire a Broker

Even though car insurance brokers charge a fee to their customers, they often work hard to please their customers to earn their money.

To find the best broker check to see if a company is registered with the Better Business Bureau or has any complaints filed against it with state agencies.

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You Need to Know Your Broker

You need to discuss your concerns and spend time with an auto insurance broker. That way he will be able to find the type deductible need and whether you need of comprehensive and collision coverage.

Most brokers are as well or better trained than most car insurance agents. They will also well understand the many types of discounts that different companies offer.

Some of these discounts could be:

  1. Good driver discounts
  2. Good student discounts
  3. Bundling discounts for those who buy several types of insurance
  4. Defensive driver discounts
  5. Discounts for members of various clubs

The Personal Touch

Car insurance brokers can offer a personal touch that agents cannot. Don’t be afraid to ask a lot of questions and to explain your situation in detail.

Do Your Shopping

If you are considering a broker, you should look for ones who have a proven record of working with many companies. It might be best to hire one who has a four-year college degree.

Many colleges and universities offer insurance courses, and individuals who have taken them might give the best service. Brokers should understand:

  • Marketing
  • Finance
  • Accounting
  • Economics
  • Business Administration

Brokers should be licensed by the state. A broker who has the designation as a Chartered Property Casualty Underwriter will have at least three years experience, a record of abiding by a code of ethics, and have completed ten college-level courses related to insurance.

Those who have the CPCU distinction will be sought out by agents because of their ethical standards, professionalism, and experience.

Some companies even pay for the courses of brokers who want to obtain the designation.

Hiring an Auto Insurance Broker Can Bring Confidence

When you hire an auto insurance broker, you can have a sense of confidence that you may not have when hiring an auto insurance agent that you are getting the best service and price.

If you want to quickly compare auto insurance rates, simply enter your ZIP code into the FREE tool below now!

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