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?

Answer
Some insurance brokers charge fees when switching you to a new car insurance policy. Since every state regulates car insurance, there are specific rules and guidelines concerning brokers’ commissions and fees.
Some brokers take a commission based on the amount of your premium. This is often about 10%, but it depends on the broker. There could 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.
You might be asking why you should use a broker. Car insurance brokers can be extremely helpful when looking for car insurance. As brokers represent you and not a specific company or agency, they can often find you the best rates.
Not all brokers charge fees. Jerry is a free licensed broker. Jerry does all the hard work of finding the cheapest quotes from the top name-brand insurance companies. You can find customized coverage without having to pay extra for a great insurance policy.
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Emily Maracle
Answered on Aug 11, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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