Find Cheap Insurance With a Broker: What You Should Know
If you're tired of overpaying for insurance, you're not alone.
Many people are stuck with overpriced policies simply because they don’t know where to look—or who to ask. That's where an insurance broker comes in. They're like the travel agents of the insurance world: they do the comparison shopping for you and often uncover better deals than you’d find on your own.
In this article, we’ll explore whether using an insurance broker can really save you money, what to watch out for, and how to choose the right one. If you're searching for cheap insurance without sacrificing coverage, this guide will point you in the right direction.
What Does an Insurance Broker Actually Do?
Brokers vs Agents: Who Works for You?
An insurance broker represents you, not the insurance company. Unlike captive agents (who only sell policies from one provider), brokers work with multiple carriers to find the best deal tailored to your needs.
How Brokers Help You Compare Insurance Rates
Brokers act as middlemen with access to dozens of insurance carriers. Their systems can generate a side-by-side comparison of rates, coverages, and discounts—all without you lifting a finger. If you're curious about what brokers really do, check out our deeper dive on what is an auto insurance broker?
Is It Cheaper to Buy Insurance Through a Broker?
Why Brokers Can Often Save You More Money
Yes, it’s often cheaper—because brokers can compare multiple quotes at once. They can spot overpriced policies, steer you away from bloated add-ons, and even apply bundling discounts you didn’t know existed.
How They Help You Avoid Overpaying for Coverage
Insurance brokers don’t just chase the lowest number; they look for the best value. That means identifying strong policies at competitive prices with proper limits.
Example: Getting Quotes From 5+ Companies
Say you need auto insurance. Instead of visiting 5 separate websites, a broker can check rates from Progressive, Travelers, Safeco, and others in a single request. Try it yourself with our car insurance price calculator and see the difference.
How Much Do Insurance Brokers Usually Charge?
Do Brokers Charge a Fee or Get Paid by Carriers?
Most personal lines insurance brokers don’t charge the consumer anything. They’re paid commissions by the insurance company when a policy is sold.
Commission Structure Explained Simply
Commissions are typically 10–15% of the premium. This doesn’t come out of your pocket—it’s built into the pricing regardless of whether you use a broker or go direct.
Hidden Fees? What You Really Need to Know
Always ask upfront. While rare, some brokers may charge service fees for hard-to-place risks. Reputable brokers will disclose everything before binding coverage.
Are Online Brokers Free to Use?
Yes—most online brokers are 100% free to use. They make their money the same way traditional brokers do: carrier commissions.
Is It Worth Going to an Insurance Broker?
Benefits That DIY Quote Sites Just Can’t Match
Brokers offer more than just rate comparisons. They explain policy language, help with claims, and adjust coverage as your needs change.
Personalized Service vs Generic Quote Engines
Unlike quote engines that leave you with questions, brokers answer them. They often catch things online forms miss—like coverage gaps or incorrect vehicle usage.
For more on why it matters, read about the advantages of using an auto insurance broker.
What Are the Disadvantages of Using an Insurance Broker?
Not All Brokers Are Created Equal
Some brokers work with a limited number of companies, which may limit your options. Always ask how many carriers they represent.
Are You Getting Unbiased Advice?
Brokers are supposed to work in your best interest, but some may favor certain carriers due to commission structures or agency relationships.
When It Makes Sense to Skip the Broker
If you’re buying from a direct-only carrier like GEICO or USAA, using a broker isn’t an option. But for almost everyone else, it pays to shop with help.
Which Insurance Companies Don’t Use Brokers?
Direct Writers: State Farm, Allstate, American Family, USAA, and Others
Companies like Allstate, USAA, and State Farm usually sell directly to consumers. They don’t work with brokers, meaning you’ll need to apply through their website or a captive agent.
The Pros and Cons of Skipping the Middleman
Going directly can be faster, but it also means you’re on your own. No one’s checking for discounts, policy gaps, or better alternatives. Learn more in our article on buying insurance online or using an insurance agent.
Can I Buy Insurance Without a Broker?
Yes, But Should You?
You can go direct, but it’s often more work for less benefit. DIY shoppers risk over- or under-insuring because they don’t know what to look for.
What You Miss When You Go It Alone
- Missed discounts
- Incorrect liability limits
- Inaccurate replacement cost coverage
Direct vs Broker: Who Wins on Price and Service?
Brokers typically win on both fronts. They’re trained to optimize your coverage and your savings.
Why Do People Not Like Insurance Brokers?
The Truth Behind Common Misconceptions
Some people think brokers are pushy salespeople or just middlemen collecting commissions. But most are licensed professionals with a fiduciary duty.
Are Brokers Just “Salespeople in Suits”?
Nope. Many brokers build long-term relationships and operate as risk advisors—not policy peddlers.
How to Spot a Great Broker From a Pushy One
- Look for clear communication
- Ask if they’re independent
- Read reviews and testimonials
Who Is the Number One Insurance Broker?
Big Names vs Local Experts: Who Wins?
National brokerages like Marsh or Aon dominate the commercial market. But for personal insurance, local brokers often beat the big guys on service and rates.
Why Local Brokers Often Beat the Big Guys on Price
Local brokers know your area, your risks, and how to match you with the right carrier.
Find a Progressive Broker in Your Area
We make it easy to connect with a Progressive Insurance agent near you through our national broker network.
FAQs About Using Insurance Brokers
What’s the difference between an insurance agent and a broker?
An insurance agent represents the insurer, while a broker represents you. Captive agents are limited to one carrier, but brokers can shop across many companies to find better rates and broader coverage. If you want flexibility and options, brokers are the way to go.
Can brokers really get better rates than going direct?
In many cases, yes. Brokers have relationships with underwriters and access to volume discounts. Plus, they can find hidden savings you may not know about. Direct carriers don’t always offer the best deal, even if their ads say otherwise.
Do brokers work for me or the insurance company?
Brokers are legally obligated to act in the client’s best interest. They work for you, not the insurance company—though they are paid commissions by carriers. A good broker discloses how they’re compensated and gives you transparent advice.
Is there a downside to using an online broker only?
Online brokers are great for convenience, but they may lack the personal touch. If your needs are complex or you want hands-on help with claims, working with a local broker is usually better. Look for hybrid options that offer both.
How do I find a trustworthy insurance broker near me?
Start with referrals, reviews, and agency credentials. Look for brokers who are licensed, independent, and transparent. If you're not sure where to start, we can help you connect with a trusted advisor in your area.