Insurance broker fees: how much do they cost?

What is an insurance broker?

If you’re looking for a good insurance deal, you will need a good insurance broker. 

An insurance broker is a type of financial adviser that specialises in general insurance.

Their job is to help customers (individuals and businesses) find the best insurance deal, taking into account both their needs and their budget. Independent insurance brokers will be able to recommend policies from across the market and won’t be tied to specific providers.

Brokers can cover various insurance products, including health and life insurance, homeowners’ insurance, accident insurance, and annuities. 

What does an insurance broker do?

Insurance brokers help people find insurance policies best suited to their specific requirements.

Their role entails acting as an intermediary, advocating for clients, obtaining premiums, and arranging insurance cover that meets the needs of individual clients. 

Insurance brokers work directly for clients; they do not work for insurance companies, which allows them to offer a range of products from different insurers.

Who should use an insurance broker?

Anyone who wants a bit of help and guidance choosing an insurance policy can use an insurance broker.

However, they can be particularly helpful if you have more complex or specialist requirements and you have struggled to obtain cover through mainstream insurance companies or by using comparison websites. 

This might be the case, for example, if you need travel insurance but have health problems, or if you are trying to arrange home insurance for an unusual property. 

Do I need to pay to use an insurance broker?

In the majority of cases, there are no upfront costs for using an insurance broker.

Rather than charging you a fee, they earn a commission that will be paid by the insurance company that provides the policy you buy.

There may be exceptions for larger, more complicated or high net worth customers.

What is the cost difference between an insurance agent and a broker?

Insurance brokers and insurance agents may operate in the same industry, but their roles are very different.

While an insurance broker represents the client, an insurance agent represents the insurance company. Comparison sites like Quote Goat can help highlight the difference in services and fees they offer. 

Insurance brokers are not affiliated with a particular company and cannot officially sell insurance — only an insurance agent can.

In many cases, you will consult with a broker first to find a policy that works for you and then complete the sale with the help of an insurance agent.  

In some cases, an insurance broker can save you money. This is because they have no incentive to overinsure or underinsure you, whereas an agent sometimes does. 

Can I get insurance through an insurance broker?

Yes. An insurance broker can help you buy insurance.

After they have sourced the best policy for you and completed the paperwork on your behalf, they will contact the insurance company to complete the sale.

Get expert financial advice

If you are looking for a new insurance policy, the best thing to do is find an insurance broker.

Insurance brokers can help you find a good deal for your personal and financial needs in exchange for a commission-based fee.

While insurance brokers represent you, insurance agents represent insurance companies. Working with both can help you make an affordable and practical insurance decision. 

To learn more about broker fees and what kind of services these professionals offer, get matched with an insurance broker via Unbiased.