Auto Insurance Brokers in 2025 (Insurance Role Explained)

Auto insurance brokers serve as intermediaries between customers and insurance companies, helping you navigate a vast range of policies and find the best options for your specific needs.

This article explores how insurance brokers provide tailored guidance, the types of brokers available, and tips for choosing the right one. It also covers the pros and cons of using brokers, helping you decide if this approach fits your auto insurance requirements. Read more about types of auto insurance to be informed.

Find the best auto insurance company with an auto insurance broker near you by entering your ZIP code into our free quote tool above.

Car Insurance Brokers Explained

Auto insurance brokers have licenses to sell insurance in their state and work with customers to help them find the right company based on customers’ needs. Car insurance brokers can often sell other types of insurance, such as home insurance and car insurance, so customers can choose multi-policy auto insurance for discounts. 

Car insurance brokers work with several different insurance companies, so they have an in-depth knowledge of policies and rates. If you purchase insurance through a broker, they will usually earn a commission from the insurance company, although a broker may also charge a fee for their services.  

Types of Car Insurance Brokers

There is only one type of insurance broker, also known as an independent insurance agent. Brokers work with multiple companies, so there is more than one insurance option to choose from when working with a broker. You may choose to work in person with a broker or select an online insurance broker. 

However, you may also see captive insurance agents labeled as brokers. Captive insurance agents may work with just a few related companies or only for one company. So if you are looking for an agent that works with multiple companies, avoid captive agents and make sure a broker is an independent agent. 

Choosing Between Insurance Brokers

When looking for an auto insurance premium, choosing a broker also matters; it is important to do a bit of research beforehand to ensure you pick a reputable broker. When you search online queries like “car insurance broker near me” or “best insurance brokers near me,” dozens and dozens of options will likely pop up. It is important to narrow down your choices to the best few. 

All brokers must be licensed by the state, so you can check your state licensing board to make sure that your broker is properly licensed. You should also check customer and consumer ratings to see if your broker has good ratings. One of the best places to check broker ratings is the Better Business Bureau, where you can view broker ratings as well as customer reviews and complaints. 

Some brokers will earn a commission from the insurance company you chose and therefore won’t charge a fee, but some brokers may charge service fees if allowed to in their state. 

This is because brokers are not allowed to sell you insurance from a company directly and depend on commissions and service fees. Instead, they will help you choose a company and coverages based on your needs, and then you will have to complete the transaction with the insurance company. 

Learn more by checking out our guide: How to Save Money by Bundling Insurance Policies

Deciding if an Insurance Broker Is Right for You: Pros and Cons

Using an insurance broker isn’t always the right choice for everyone. Some of the cons of using an insurance broker include the following: 

• Using a broker can be more expensive. Because brokers may charge additional fees, you may find your cost higher than purchasing insurance on your own. 
• Brokers may try to upsell you on insurance. Brokers earn a higher commission the more insurance they sell, so they may try to convince you to purchase more insurance than you need. 
• It’s not always necessary to use a broker. If you are looking for a simple auto insurance policy and have a good driving record, you probably don’t need to go through a broker and can get quotes on your own. 

Of course, there are several pros to using a car insurance broker, especially for those with more complex insurance needs. 

• Brokers have insurance expertise. Brokers are familiar with different types of insurance, rates, companies, and more. They can offer helpful advice on what types of insurance to choose for your individual needs. 
• Using a broker can save you time. Instead of spending hours researching companies and getting quotes, the broker will do all the hard work for you and lay out your options. 
• They can help you adjust your policies over time. As your insurance needs change, your broker can help you adjust your coverage. 

If you want help choosing the cheapest auto insurance companies and want someone to do the work of comparing companies for you, you may want to choose an insurance broker.

However, if your insurance needs are simple and you already have an idea of which insurance company you want, you can opt out of using an insurance broker. 

Difference Between an Insurance Broker and an Insurance Agent

What are car insurance agents and brokers? The terms agents and brokers are often used interchangeably, but they are not the same thing. Brokers refer to professionals who work with several insurance companies, whereas agents usually refer to professionals who only sell from a few companies or only one company. 

Comparison Between Insurance Agent and Insurance Broker

However, where most people get confused is when the terms captive agent and independent agent are used. A captive agent just refers to an agent who only sells for one company or just a few companies, whereas an independent agent is another term for brokers. 

According to LearnandServe, both agents and brokers must be licensed and may specialize in a certain area of insurance, such as car insurance, or sell multiple types of insurance. All agents and brokers also have to comply with state laws and regulations regarding insurance. 

Other Differences Between Agents and Brokers

So what are the other key differences between agents and brokers? The key differences are as follows: 

• Only agents can complete the insurance sale. Brokers can’t complete the transaction between the customer and the company, whereas agents are licensed to sell to the customer directly from the company. 
• Agents are representatives of companies. Agents sell on behalf of companies, whereas brokers are representatives of the customer rather than the company. Brokers work to find which company is best for their client and recommend a company. 

Brokers help customers select a policy from multiple companies and recommend coverages, but the final sale depends on the customer completing the transaction with the company. Therefore, if you aren’t sure where to start, a broker may be a good choice for you. A broker may end up sending you over to an agent to complete the transaction if the insurance company you chose is agent-only for sales. 

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On the other hand, if you know what coverages you need and what company you want to sign up with, you can go directly to an agent if you wish. Make sure you check what the best auto insurance companies for independent agents are if you are going through an agent-only insurance company. 

Other Ways to Buy Car Insurance

Buying auto insurance through an agent or broker isn’t the only way to purchase a policy. Here are some of the other ways you can purchase car insurance: 

• Directly from the insurance company. In most cases, you can purchase a policy directly from the company online or by phone.
• From an online cost comparison tool. Some free comparison tools will help you compare company rates and then direct you to the company to finish the transaction for your chosen company. 

Some insurance companies don’t use agents, in which case you can purchase insurance directly from the insurance company if you wish to. Learn more on how to buy auto insurance online instantly.

Choosing the Right Auto Insurance Brokers

If you find your insurance options to be overwhelming and don’t know where to start, using a broker can help you narrow down your options. Brokers can advise you on which coverages are right for you and which companies will best suit your needs. For more information about the differences between an auto insurance company and insuance brokers, keep reading,

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If you don’t find a good match after googling “car insurance brokers near me,” but you still want to see quote comparisons, using a rate comparison tool is another great option. Uncover affordable auto insurance rates from the top providers by entering your ZIP code below.