Pros And Cons Of Buying Auto Insurance Through A Broker

Posted on: 23 February 2023

There are a few different ways to go about buying auto insurance. You could get quotes from various insurers on your own, compare the quotes, and pick an insurance company to use. Or, you could hire a broker. A broker would do the "shopping around" for you and recommend a policy that suits your needs. Which approach is better? Well, that really depends on your situation and preferences.

Here are some pros and cons of using an insurance broker to buy your auto insurance.

Pro: You won't spend as much time shopping around

Shopping around for auto insurance can be really time-consuming. It can take hours to enter your information, again and again, into various insurers' systems. Then, you have to compare the quotes you get back, which takes even more time. Hiring a broker relieves you from having to do all this leg work. You provide your information once — to the broker — and they do all the shopping around. They only present you with the best deals, too, which cuts down on the time you spend comparing policies.

Con: You do have to trust the broker

Hiring a broker means putting a certain amount of trust in them. You're trusting that they know which insurers are reputable and will offer a good price. You're trusting them with your private information, too. A broker with a long track record of success can usually be counted upon to be trustworthy, but some people struggle to offer this sort of trust more than others.

Pro: You may get a better rate

Some insurers offer a better rate to clients who come to them via a broker. They do this because the brokers bring them multiple clients. Your broker may also have discounts and deals worked out with various insurers that you would not be eligible for if you were to buy insurance on your own.

Con: You will have to pay a fee

Brokers do not work for free. You will have to pay a fee for their services. Usually, the savings they earn you on your auto insurance will be greater than this fee, so you save money in the long run, but the fee is still something to consider.

Consider the pros and cons above to get a better idea of whether buying auto insurance through a broker is the right approach for you. It doesn't hurt to talk to a broker or two, too.

Reach out to a local auto insurance broker to learn more.