What are car insurance brokers?
A broker is a person or company who researches the car insurance market on your behalf to find you the right deal.
When dealing through a broker, you can tell them what your requirements are for car insurance, and after researching the market they’ll return to you with a list of options. Brokers don’t represent or work for one particular insurer – and they’re always required to put your interests ahead of the insurance company’s.
Brokers can also help if you need to make a claim on your car insurance – they’ll often guide you through the process and take the lead in negotiations with your insurer.
Car insurance brokers have existed for a long time, and predate price comparison websites. At MoneySuperMarket, we compare brokers as well as individual car insurance providers, which means that all the best options are here for you to choose from.
Is it better to use a car insurance broker?
Buying car insurance through a broker has many advantages over buying insurance directly from a supplier. Some of these advantages include:
- Expertise: Car insurance brokers often have expert knowledge of the car insurance industry. They’ll know many of the tricks of the trade, and loopholes that can help you get a better deal on car insurance
- Less time and effort: If you use a broker, they’ll do much of the hard work of arranging your insurance for you, and they’ll often help you make a claim
- Preferential rates: Some brokers may have built up relationships with car insurance providers, allowing them to negotiate lower rates on car insurance than those offered to the general public
- Specialist insurers: A broker will often be able to source car insurance quotes from a specialist insurer that doesn’t deal directly with the public. This can be useful if you’re looking to find car insurance for a classic car, a high-end performance vehicle or a car you’ve built yourself
- Putting you first: Under the rules of the British Insurance Brokers Association (Biba), car insurance brokers are obliged to put you first in any transaction, rather than the insurance company
However, it’s worth bearing in mind that many of the services offered by car insurance brokers are also available through price comparison sites like MoneySuperMarket. What’s more, our price comparison service searches brokers as well as insurers, so we can let you know if there’s an opportunity to save money.
Is car insurance cheaper through a broker?
Car insurance brokers are dedicated to finding the best deal on car insurance for your needs at the lowest price. However, insurance brokers also take a commission from the insurer on each policy sold. It’s possible that a broker could find you a better deal on car insurance than you’d find yourself, but your insurance would end up being more expensive once their commission is taken into account.
This commission is often included in your monthly or annual car insurance premiums – so it’s not always immediately clear how much you’re paying for a broker’s services.
What are the disadvantages of using a car insurance broker?
Car insurance brokers come with some limitations. As well as charging commissions that could make your car insurance more expensive, many brokers work with a limited panel of car insurance providers. This means you could often miss out on a better deal elsewhere, simply because they don’t work with the provider.
There are some car insurance providers that will not sell through brokers, which also increases the chance you’ll miss out on a better deal.
What’s the difference between a broker and an insurance agent?
Unlike brokers, car insurance agents are contracted to a single insurance company, and will only sell car insurance from their own company. The difference between a car insurance broker and an insurance agent is that an insurance agent works on behalf of an insurance firm, while a broker works only for you.
This means that if you buy car insurance through an agent you won’t be charged a commission. Although agents won’t cost any extra money, buying car insurance through an agent severely limits your options, and you can often get a much better deal through a broker or by using a free price comparison site like MoneySuperMarket.
Compare car insurance brokers with MoneySuperMarket
If you’re looking to compare car insurance brokers, you can do this with a few clicks of the mouse at MoneySuperMarket.
Our site compares both car insurance brokers and over 100 different car insurance providers, which means you get access to a very wide range of deals – giving you plenty of options to choose from, including those insurers that typically don’t deal with brokers.