Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 14, 2020

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Key takeaways...

  • A broker offers certain benefits that you don’t get by going through a car insurance company itself
  • Even though a broker can help you find a discounted policy, you should still do your own research
  • When interviewing different brokers, make sure to ask how their fee system works so that there are no surprises on your end when it comes to signing the policy
  • Knowledge is power, so it would be in your best interest to understand the ins and outs of the company that is insuring your car, even if your broker does not

If you are looking to save on your car insurance, there are a few ways to find a discount car insurance broker. You can find one online, through referrals from friends or co-workers, in the phone book, or through your state insurance department.

Once you have found a broker, there are other steps that you need to take in order to find a good car insurance policy.

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There are a number of reasons why you may want to use a car insurance broker. A broker offers certain benefits that you don’t get by going through a car insurance company itself.

Even though a broker can help you find a discounted policy, you still should do a little bit of research yourself rather than just going with what the broker recommends.

Table of Contents

Broker Information

A broker is different than a regular insurance agent. An agent works for one insurance provider and can only sell its products.

While this works for many drivers, sometimes it can be a bit limited. A broker is independent and does not work for one particular company.

A broker has access to more than just one company’s products and, in many cases, the options are numerous.

This allows the broker to be flexible and tailor a policy to what your exact needs are. Using a broker is sometimes a good idea for those drivers who have unique needs and have difficulty finding a policy with other insurance companies.

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Find a Broker Online

In this day and age, many people use the Internet for a plethora of things. It is convenient, easy, and quick. Finding a discount broker is just one of the many things you can do online.

You can use the browser to type in the keywords you are looking for, whether it is insurance broker, discount broker, or car insurance broker. Any results that are possible will be shown and you can start your research.

If you choose a broker online, you can choose one who lives in your area or one that is only available online. If you decide on one in your area, you can meet him or her in person and go over your insurance needs.

A broker can explain how insurance works and answer any questions you may have, just like an agent can.

If you choose one whom you will work with online, it is a good idea to have a fairly good grasp of car insurance, such as what the different types of coverage are good for, what a deductible is, and what is the recommended amount for liability amounts.

This information can be found through the Insurance Information Institute, as well as other insurance information.

Get a Broker Referral

A great way to find a car insurance broker is through a referral from someone you know. Ask your colleagues, friends, and neighbors if they have ever used a broker for their car insurance.

If they were satisfied and happy with their experience, ask for the contact information of the broker and call him or her.

There are many network and referral groups in most cities around the country. This is another source to find a broker for car insurance.

One such group is Business Networking International. You can visit its website and enter your zip code. You will be directed to groups in your area and you can search to see if any of them have a car insurance broker as a member.

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Interview Multiple Brokers

If you don’t personally know the brokers that you have either found on the Internet or been referred to, it is okay to interview them or do some research to find out more about them and their business.

Ask for a list of the providers that they work with to get an idea of what options they are dealing with. Take a closer look at the providers to see if they are respectable and well-known companies.

Just because you aren’t familiar with the companies listed, doesn’t mean that they are not reputable companies.

Some smaller providers are great companies, they just service a smaller client base and are less well known. You can contact your state insurance department to see if there are any complaints that have been made against any of the providers.

Also, check the website for A.M. Best to see if the company is financially stable. An important thing to find out is whether or not the broker is insured in your state.

He or she must also be registered to sell insurance in your state. This information can be found through the insurance department of your state or through the Better Business Bureau in your local area.

Ask the broker how long they have been in the business and what type of clients they serve. Ask if they specialize in anything in particular or have had success in finding policies for any particular high-risk drivers.

Once you know the brokers a little better, you will be able to make a more educated choice as to which one to continue with.

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Costs of Using a Car Insurance Broker

The costs of using a car insurance broker may vary depending on which one you use. When interviewing different brokers, make sure to ask how their fee system works so that there are no surprises on your end when it comes to signing the policy.

Most of them will not charge you directly for using their services. Many of them make their money from the insurance providers, who pay them a portion of each policy sold.

Whether or not this causes the premium to be higher is hard to know. Most brokers indicate that it doesn’t cost any more to use them as opposed to using an agent or finding a policy online.

Since it doesn’t cost more to use a broker as opposed to finding a policy on your own, you are usually better off using the services and knowledge of an insurance broker so that you are assured you are getting the right policy for the right price.

Downfalls to Using a Car Insurance Broker

Using a broker to find a car insurance policy is usually a solid way to go. They should have your best interest in mind because they aren’t working for one particular insurance company.

There are some considerations that you should be aware of, however, before you decide to use one.

As was stated before, make sure that the broker is able to sell car insurance in your state. It doesn’t happen very often, but in rare occurrences, insurance fraud can occur if you use a shady broker or insurance company, for that matter.

According to the Coalition Against Insurance Fraud, agents, companies, and brokers can be involved in a number of scams. One is selling insurance policies that are phony.

Another is signing you up for a legitimate policy but then taking the premiums you pay and using them for their own needs. In either of these cases, if you ever did file a claim, you would be unable to collect any money for damages.

Some brokers will have their own bottom line as a focus, rather than yours. These will result in you paying much more for your policy than is necessary.

If you feel like you have been a victim of an insurance scam or if you would like to inquire more about a particular broker, contact your state department. The National Association of Insurance Commissioners has the contact information that you will need.

Also, question it if the premium price seems too good to be true. It is understandable that you want to find a discounted rate, but if it is too low, such as almost half as much as comparable policies, you may want to back off and do some research on your own.

The insurance business can be tough. For that reason, not every person who starts out in the brokerage business lasts. Some don’t even make it a year. That is another downfall to working with a broker.

If you use a broker to find a car insurance policy but the broker chooses not to continue in the business, you will be left somewhat alone and will need to get a hold of the insurance company directly if you have any questions.

Another downfall about using a broker is that the knowledge of any certain insurance broker will often be less than if you were dealing directly with the company.

Sure, the broker can probably do a good job of shopping around and finding a low-priced policy for you, but knowing details about all of the companies is rarer.

In order to find out more about a particular company, you may want to do some additional research on your own.

Knowledge is power, so it would be in your best interest to understand the ins and outs of the company that is insuring your car, even if your broker does not.

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