Car Insurance Brokers

More information about car insurance brokers

How do you find the right insurance for your car among the scores of different car insurance policies to choose from?

Before the advent of comparison websites such as MoneySupermarket, if you wanted to find the best price for your car insurance you would go to an insurance broker who would then search the market to find the best policy for your needs.

What are car insurance brokers?

Car insurance brokers do not work for one company, but will instead contact a number of insurers to find cover that is appropriate and affordable. Car insurance brokers are therefore different to an insurance agent, who is employed to sell the policies of just one company.

The role of a broker is to build up relationships with a number of insurers and negotiate special rates. This means their service works a lot like MoneySupermarket's in that it can save you both time and money.

A broker might also be able to source a quote from a specialist insurer that does not deal direct with the general public - for example if you have a specialist vehicle, such as a classic car, or you are having difficulty arranging cover through a mainstream insurer.

Why do car insurance brokers offer this service?

Obviously, car insurance brokers do not work for free. Instead, they are paid commission by the insurer when they sell a policy. The commission is usually incorporated into your annual premium. In other words, you do not usually have to pay an explicit fee to the broker, though you can ask for details of the cost.

The commission system is not without its faults. For example, car insurance brokers may only work with a select panel of insurers. They do not search the whole market for quotes which means you could miss out on the best deal.

That's why it's important to check out a broker's credentials to make sure it champions the interest of the customer at all times. A reputable firm will be authorised by the Financial Services Authority (FSA). It will also most likely be a member of a professional body, such as the British Insurance Brokers' Association (BIBA).

How does MoneySupermarket differ from car insurance brokers?

MoneySupermarket, on the other hand, compare the prices of more than 100 insurers and means you can instantly compare policies online. Furthermore, MoneySupermarket has direct access to companies such as More Than, who do not typically deal with brokers.

MoneySupermarket is also the only comparison website that is completely independent: it is a listed company, owned by shareholders so you can be secure in the knowledge that you are getting an impartial service and the quotes you are given are the best for your circumstances.

In addition, the website offers plenty of useful guides, giving advice on a wide range of topics from insurance for teenage drivers to how to make the most of a no claims discount.

But most importantly, it can save you money - a quarter of our customers pay a whacking £400 less on their insurance compared to their previous policy.