It can be difficult to get the right cover if you’ve made modifications to your car or have unusual insurance needs. Find out how brokers can use their specialist knowledge to find you the right policy.
A car insurance broker is an independent person or company that helps you to insure your vehicle.
They find out what your cover requirements are and then search for the most suitable options to get you a great deal.
Before easy-to-use comparison websites like GoCompare were around, car insurance brokers could help save you time and money.
Car insurance brokers work independently, acting as a middleman between you and insurance companies.
They get paid commission by insurance providers for selling their products. But they must follow British Insurance Brokers’ Association (BIBA) regulations and always put your needs first.
Taking details of your requirements, they’ll help you decide what type of insurance and level of cover you need, and work to find you a great deal.
With so many different policies and providers to choose from, using an insurance broker can help you to narrow down your options.
Other benefits of working with an insurance broker include:
But there are also some disadvantages to using a broker:
A car insurance broker can help you find cheaper insurance, but you’ll need to take into account their commission - this is normally included in your premium.
If you have complex insurance needs, a broker can be useful in helping you find the right policy at the best price.
However, for straightforward car insurance, there’s a good chance you’ll pay more with a broker than if you just find the deals yourself online or go direct.
Car insurance brokers make their money from the commission and fees they earn when someone buys an insurance policy through them.
As licensed professionals, the commission they receive from finding you the right policy is typically a percentage of the policy’s annual premium.
So, while the cost of the premium itself will go to the insurer, the broker will benefit from the commission.
Although they can both help you find the right policy, there are some differences between how comparison sites and insurance brokers work.
Brokers will use a panel of insurers, so it’s a good idea to find out how many insurers they deal with or whether they’re a whole-of-market broker.
On the other hand, comparison websites like GoCompare will quickly compare and scan information from hundreds of providers to get you the best deal.
Comparison websites are also free to use, whereas brokers will either charge a fee or their commission will be added to your premium.
So although brokers can help you to find a deal, you might end up paying more than if you used a comparison site.
But for more unusual insurance needs, a broker may be able to give you valuable advice and help you find specialist cover. They can also take the legwork out of making a claim.
No, they actually work quite differently from each other.
Car insurance agents usually just represent one insurer who they act on behalf of, which means you’ll potentially miss out on cheaper deals from other providers.
However, insurance agents don’t charge commission - this could lower your premiums if you bought through them.
Whereas brokers work with a panel of providers and they have to act with your best interests at heart, not the insurers.
But the easiest and cheapest way to find the best policy is to shop around and compare quotes.
Most insurers will up their prices or refuse to cover you if you’ve had a driving conviction, but there are specialist insurance brokers that can help you with this.
You should still be able to get the same level of cover as someone without a conviction.
But because you’re likely to be charged more, it pays to compare quotes. If you’re not happy with the results, you could then see if a specialist broker could get you a better deal.