What is the difference between an auto insurance agent and an auto insurance broker?
There's a difference between auto insurance agents and auto insurance brokers. Keep reading to learn about the roles of insurance agents and insurance brokers and how they can assist you in your search for the best auto insurance policy.
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Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
UPDATED: Jul 6, 2023
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jul 6, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Auto insurance agents work for specific insurance companies and can offer policies from that company only
- Auto insurance brokers work independently and can provide policies from multiple insurance companies
- Both auto insurance agents and brokers can help you navigate the insurance market, provide you with advice, and assist you in finding the right coverage for your needs
Auto insurance is necessary for anyone who owns a car, and finding the right policy can be challenging. Getting help is also challenging, as you need to know the differences between an auto insurance company vs. an auto insurance broker, and an auto insurance agent.
Auto insurance agents and brokers can help you navigate the market and find the best coverage for your needs, but what’s the difference between an auto insurance agent and an auto insurance broker?
Auto Insurance Agents
Auto insurance agents work for specific insurance companies. The role of an auto insurance agent is to sell policies solely from that company. Agents can help you understand how auto insurance works and the policies offered by their company.
Agents can also help you choose the coverage that suits your needs. Auto insurance agents can also assist you in filing claims and addressing any issues with your policy.
When working with an auto insurance agent, remember that they work for the insurance company, whose main goal is to sell you a policy from that company. Therefore, they won’t offer policies from other companies, which means you may miss out on potential savings or better coverage options.
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Auto Insurance Brokers
Auto insurance brokers work independently and can provide policies from multiple insurance companies. They act as intermediaries between the insurance companies and you, the customer.
They can help you compare policies from different companies, negotiate car insurance rates, and even inform you about what auto insurance companies don’t tell you.
Auto insurance brokers also advise on the insurance market, help you understand the terms and conditions of policies, and assist you in filing claims. They work for you and aim to find the best policy that meets your specific needs.
Working with an auto insurance broker can provide you access to multiple companies’ policies, which can lead to better coverage options and lower rates. However, remember that brokers may charge a fee for their services, and you’ll need to factor that into your overall budget when shopping for auto insurance.
Picking an Auto Insurance Agent or an Auto Insurance Broker
Both auto insurance agents and brokers can provide valuable assistance in your search for the right auto insurance policy. Choosing between them will depend on your specific needs and preferences.
If you’re looking for a policy from a specific insurance company, an auto insurance agent may be the right choice. They can provide expert advice on that company’s policies and assist you in choosing the right coverage for your needs.
If you want help with comparing auto insurance quotes and accessing policies from multiple companies, an auto insurance broker may be the better option. They can provide a wider range of choices and help you find the best policy that meets your needs and budget.
The Bottom Line on Auto Insurance Agents vs. Brokers
When shopping for auto insurance, it’s essential to have an expert to help you navigate the market and find the best coverage for your needs. Auto insurance agents and brokers can provide valuable assistance, but understanding their differences is crucial in making an informed decision.
Consider your specific needs and preferences when choosing between an auto insurance agent and an auto insurance broker. Don’t hesitate to ask questions and compare policies before making a decision.
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Frequently Asked Questions
Who pays an auto insurance broker?
Insurance brokers are typically paid by the insurance companies they work with through commissions or fees. However, in some cases, they may also receive payment directly from clients for their services.
What is the advantage of an auto insurance broker?
Insurance brokers can offer impartial advice and help clients navigate complex insurance policies. They can also compare different policies and find the best coverage at competitive prices, saving clients time and money.
What is the advantage of an auto insurance agent vs. an auto insurance broker?
Insurance agents often work for a single insurance company, allowing them to offer in-depth knowledge about its products and services. They can provide personalized guidance and support for clients, ensuring they choose a policy that meets their needs.
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Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.