Do car insurance brokers charge fees?

My friend recommended using a car insurance broker to find a new insurance policy. I've heard brokers charge fees when helping you find insurance. Is this true?

Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Some—but not all—brokers charge fees to switch you to a new car insurance policy, depending on your state.
Every state regulates car insurance, and there are specific rules and guidelines concerning brokers’ commissions and fees. You can ask a broker what their fees are before you use them. 
The amount may come in different shapes:
  • Commission: Some brokers take a commission based on the amount of your premium, which is often about 10%.
  • Flat fee: There may also be a flat fee for their service once you sign an insurance policy.
Before deciding to use a broker, you can ask them what their fees are. You can also research your state’s regulations through its Department of Insurance or Department of Financial Services.
Here are some reasons why you may want to use a
car insurance broker
  • Represent you: Because brokers represent you and not a specific company or agency, they have a strong incentive to help you find the best policy at the lowest cost.
  • Rates: Not all brokers charge fees. (
    is a free licensed broker, FYI).
Hope this helps!
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