Marissa Hayes is a technical editor and contributing writer. She holds a Bachelor’s Degree in history, and she was the editor of the literary magazine, The Bluestone Review.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Car Insurance Agent Daniel Walker

UPDATED: Jul 19, 2021

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.

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.

The Short of It:

  • Auto insurance brokers work for agencies to sell policies from multiple insurance companies.
  • Auto insurance brokers compare quotes by researching different insurance companies to find the best rates for their clients.
  • Brokers charge a broker fee and get a commission for their services.

Is it better to use an insurance broker?

Car insurance brokers are typically independent and shop around for the best car insurance deals. They use their extensive knowledge of car insurance to find the best rates, discounts, and more.

Car insurance needs vary by person, and brokers are more often used by people with complex insurance needs, such as small business owners. In this article, we’ll look at the benefits of insurance brokers vs. the disadvantages of insurance brokers.

You don’t need a broker to compare rates today. Enter your ZIP code to get FREE quotes from multiple insurers.

Is it better to go through an insurance broker?

Why should you use an insurance broker? Are car insurance brokers worth it? Is it best to use an insurance broker? This is an individual decision because each person’s insurance needs are different.

Car insurance brokers work independently and sell for multiple agencies. They are able to research, compare rates, and find the best deals for their clients.

But typically, individuals who want a personal car insurance policy won’t need to go through a broker. If you’re looking for coverage on your vehicle, you’d probably be better off doing the research yourself instead of paying a broker fee.

If you have a more complicated insurance need — such as fleet insurance or coverage for a small business — it could be worth it to work with an insurance broker.

Rates do vary, but it’s possible to do the research yourself for single-vehicle car insurance. We can even help at the top of this page with multiple free quotes from the top insurers. That saves you from paying a broker fee.

Let’s take a look at car insurance rates from different companies in the table below.

Average Annual Car Insurance Rates Based on Type of Coverage
CompaniesAverage Annual Car Insurance Rates for Low CoverageAverage Annual Car Insurance Rates for Medium CoverageAverage Annual Car Insurance Rates for High Coverage
American Family$3,368.49$3,544.37$3,416.40
Liberty Mutual$5,805.75$6,058.57$6,356.04
State Farm$3,055.40$3,269.80$3,454.80
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In some cases, you can even save money by investing in a higher level of coverage.

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How does using an insurance broker work?

What does an insurance broker do for you? Insurance brokers work independently. They use their extensive knowledge of insurance to compare quotes, find discounts and options for you, and find the best rates.

Basically, they help determine your risks and provide the best insurance options for your specific circumstances.

This video from NibaTV goes over some of what insurance brokers do.

One benefit is that they can act as your advocate in the settlement of a claim that you might be making against your insurer.

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Frequently Asked Questions: Is it better to use an insurance broker?

We hope we’ve answered your question, “Should I use an insurance broker?” Just in case, we’ve added some additional information below through some frequently asked questions.

#1 – What is an insurance broker’s salary?

An insurance broker’s responsibilities are pretty much to work directly for you. They have to build rapport, schedule meetings, and determine how best to meet their clients’ needs.

Typically, insurance brokers make between $36k-$120k a year.

#2 – How can I find an insurance broker near me?

It’s pretty easy to find a broker near you online. A quick google search with your hometown should bring up a list, and sites like the Insurance Brokers Group can help locate one near you.

#3 – What’s the difference in an insurance broker vs. agent vs. producer?

Producers or agents represent insurance companies. Brokers represent the client. Producers essentially try to find clients, and brokers try to find the product for the client. So an insurance broker, meaning a client representative, can help connect you with an insurance company that can best fill your needs.

#4 – What’s the difference between insurance broker fee vs. commission?

A broker fee is an additional fee charged by the broker, typically a flat rate for a specific service. Commission is paid on top of that and is charged by insurance brokers. These fees must be considered reasonable.

The California Department of Insurance notes that the broker must agree to represent the consumer competently and honestly.

Do you need to find the best auto insurance rates with or without an insurance broker? We can help. Enter your ZIP code and get FREE car insurance quotes from multiple insurers.