What is a broker?
A broker is essentially the middle man between you and insurance providers. They'll find you a deal based on your specific requirements, and charge you commission.
Why should I use one?
Brokers are experts, usually specialising in a single field; a car insurance broker is a car insurance expert. And they can offer you expert advice and guidance.
They'll walk you through the process of finding cost-effective car insurance - but they'll do all the legwork for you.
Brokers usually have relationships with a small number of insurance providers. And they can use these relationships to secure a better deal for you.
They'll also be on hand if you ever need to make a claim. Or if you need specialist car insurance, like for a classic car.
The key consideration is cost. Even if a broker finds a great car insurance deal, their fee could mean you pay more overall.
You could use a comparison site instead - they offer a similar service, without charging you any extra. Brokers used to be popular because they saved time and effort; in many cases, comparison sites have taken over.
Interested in using a broker? Don't get mixed up with an insurance agent. Agents work for individual insurers, and they work on their behalf. So while they might get you a good deal with a specific provider, they won't look anywhere else. Brokers work on your behalf to get you the best deal, weighing up what different providers can offer.
Make sure a broker is authorised and regulated by the FCA before you work with them.
So, should I use a car insurance broker?
It depends on how much work you want to put in...
Convenience over cost?
If you want a hassle-free route to car insurance - and you're happy to pay a bit more for it - a broker could be a good option for you.
But if saving money is the key...
If you want to save money, avoid a broker.
Use a comparison site to compare deals instead. Then call insurers yourself - a lot of them have deals reserved for direct customers. And you can often negotiate for an even better price - all without the added broker's fee.
ChooseMyCar Staff Writer
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