A car insurance broker is similar to an insurance agent, but not quite the same. Whereas an agent represents a specific company and can only offer insurance products from that company, a broker can offer products from several different companies. There are advantages and disadvantages to using a broker when looking for car insurance.
The advantage of using a car insurance broker when shopping for a new policy is they are trained in the industry, know the terms and policies and can help locate the right policy for you easily. You can do your own research on the Internet, but the insurance industry can be complicated and policies full of terms and exclusions that if you don’t understand them, could wind up costing your more money in the end. A broker is familiar with how policies work and will know what to look for and what to avoid once they understand your circumstances and needs. The broker will also know what can be added on, taken away or changed in a policy, They can also give you guidance on the things you can do that can bring a premium rate down such as adding security devices or limiting the number of drivers who will be using the car.
The main disadvantage of using a car insurance broker is that they make their income off the commission they get for selling policies. This not only means that it may be in their best interest to sell you a more expensive policy then you may need, but that some insurance companies will offer them incentives to push new products. You have no real way of knowing what is influencing the selection of policies your car insurance broker is offering to you. The only security you have in this matter lies in the confidence you have built in your relationship with the broker. If you feel it is strong, respectful and they have your best interests at heart – then what they offer is most like a selection of the best choices for you.