Should You Use a Car Insurance Broker?

An auto insurance broker is a person or company that helps people find a car insurance company that bests suits their budgets and needs. However, often times these brokers financially pressure clients, and their ties to the insurers they cover can be suspect.

So, should you use a car insurance broker? Well, let's look at the pros and cons of using a car insurance broker to see if maybe you'd be better off on your own. Remember, everyone is different, so if you have no clue about which car insurance to buy or the carrier to choose, an insurance broker is still your best bet.

Pro: Brokers Can Do the Research for You

Most people live very busy and hectic lives, so they don't have time to get identical price quotes from different insurers. They also usually don't have time to research discounts, customer satisfaction ratings or any of the other dull aspects of car insurance shopping. You would think that something you "shop" for would be fun, but for most people, car insurance shopping really isn't fun at all.

Pro: Gives You Lots of Options Quickly

Just by hiring a car insurance broker, you can get a detailed spec sheet listing the different prices and offerings company by company. If you are moving or are in a rush to get car insurance, you really can't beat working with a broker.

Pro: They Will Save You Money

Car insurance brokers invariably have all the inside information about discounts and sweet deals, and they can almost always save you money. Why not hire a terrific broker the next time you buy auto insurance and pick his or her brain for information? Then you will be equipped to do it yourself next time. That leads me to my next point.

Cons: It Costs Money to Hire a Broker

Brokers charge a service fee for the advice they provide (as they should), so this does eat into the amount of money a car insurance broker is saving you. That is just a logical trade off: you pay them for the information they provide.

Cons: Broker Might Push Policy that Is Most Beneficial to Him or Her

Some brokers can qualify for kick-backs from insurance carriers that they promote via their business. For example, a less than ethical broker might just forget to tell you about a more highly rated company with a lower rate if they get a big bonus for recommending company x.