Introduction
Finding the right insurance policy can feel overwhelming.
So many companies, so many options, so much fine print.
That’s where insurance brokers come in — experts who make the process easier, faster, and often cheaper for you.
But what exactly does an insurance broker do?
And how is a broker different from an agent?
In this complete guide, we’ll break down everything you need to know about insurance brokers: how they work, why you might need one, and how to choose the best broker for your insurance needs.
What is an Insurance Broker?
An insurance broker is a licensed professional who represents you, the client, — not the insurance company.
Their job is to help you find the best insurance policy from a wide range of providers.
Brokers work with multiple insurance companies to:
-
Compare quotes
-
Explain policy options
-
Customize coverage to fit your needs
-
Advocate for you during the claims process
Key Difference:
Unlike insurance agents (who may represent one or a few companies), brokers work independently to serve your best interests.
What Does an Insurance Broker Do?
Here’s what a broker typically helps with:
Assessing Your Needs
They ask about your situation (home, business, car, health, etc.) and identify the types and levels of coverage you actually need.
Shopping Around
They gather quotes and policy options from multiple insurance companies — saving you time and effort.
Advising You
Brokers explain confusing terms, coverage details, exclusions, and pricing so you can make an informed decision.
Handling Applications
They assist with paperwork, applications, and setting up your new policy.
Supporting Claims
If you need to file a claim, a good broker can help you navigate the process and make sure you get fair treatment.
Policy Reviews
Brokers often help review and update your policies over time as your needs change.
Types of Insurance Brokers
There are different types of brokers, depending on what they specialize in:
| Type of Broker | Focus Area |
|---|---|
| Personal Lines Brokers | Car, home, renters, life, health insurance for individuals and families. |
| Commercial Brokers | Business insurance (liability, property, workers’ compensation, cyber insurance). |
| Specialist Brokers | Niche areas like marine insurance, aviation insurance, or event insurance. |
Some brokers handle both personal and business clients.
Insurance Broker vs. Insurance Agent: What’s the Difference?
| Role | Key Difference |
|---|---|
| Insurance Agent | Represents one or a few insurance companies. |
| Insurance Broker | Represents you, the customer, and shops across many companies. |
Think of it like this:
-
An agent sells their company’s products.
-
A broker finds the best product for you, from multiple companies.
How Insurance Brokers Make Money
Brokers are typically paid in two ways:
-
Commissions: A percentage of your insurance premium, paid by the insurance company.
-
Broker Fees: Some brokers charge a service fee (especially for highly customized insurance needs).
Important:
A good broker focuses on long-term relationships, not quick commissions — so they have strong incentives to keep you happy.
Why You Might Want to Use an Insurance Broker
Here are the top reasons:
Save Time
Brokers do the shopping and comparing for you — across dozens of companies if needed.
Save Money
Because brokers have access to a wide network of insurers, they can often find better deals or coverage for the same price.
Get Expert Advice
Insurance can be confusing — brokers explain coverage options clearly and honestly.
Access to More Options
Some insurance companies only sell through brokers — meaning you can’t find their policies online or directly.
Better Claims Support
Brokers can act as your advocate if you ever have to file a claim.
How to Choose the Right Insurance Broker
Choosing a good broker is key to getting great insurance coverage:
1. Check Their Licensing
Brokers must be licensed by your state’s Department of Insurance.
You can verify their license online.
2. Ask About Experience
-
How long have they been in business?
-
Do they specialize in your type of insurance (personal or commercial)?
-
Have they worked with clients like you?
3. Look for Independence
Make sure your broker truly works with a wide range of insurers — not just a few.
4. Read Reviews and Testimonials
Look for customer reviews on Google, Yelp, Trustpilot, or Better Business Bureau (BBB) to see how they handle service and claims support.
5. Understand Their Fees
Ask upfront about any fees they charge — and compare them to the value they’re offering.
Best Insurance Broker Companies in 2025
Some popular, highly-rated brokerages include:
| Company | Strengths |
|---|---|
| Marsh McLennan | One of the largest and most experienced brokers globally. |
| Aon | Strong for large commercial clients and risk management. |
| Gallagher | Great for small-to-medium businesses. |
| Policygenius | Best for easy online quotes for individuals and families. |
| Simply Business | Focused on small business insurance options. |
Note:
Many smaller local brokers also offer excellent, highly personalized service!
When You Might Not Need an Insurance Broker
In some simple situations, you might be fine buying insurance directly:
-
If you only need basic auto or renters insurance
-
If you’re comfortable comparing quotes and policies on your own
-
If you have only one very specific, straightforward insurance need
However, even then, a broker might find you a better deal or point out gaps you didn’t know existed.
Common Myths About Insurance Brokers
Myth: Brokers make insurance more expensive. Fact: Brokers often help you find better deals than you could find yourself.
Myth: Brokers only work for businesses. Fact: Many brokers specialize in personal insurance too (home, car, health).
Myth: I can just use comparison websites instead. Fact: Comparison websites only show a limited list of insurers — brokers have access to a broader network and can customize policies.
Frequently Asked Questions About Insurance Brokers
Q: Do insurance brokers cost extra?
A: Not usually. Most are paid commissions by the insurance companies. Some charge small service fees — always ask upfront.
Q: Can brokers help with claims?
A: Yes! Many brokers help you manage claims and make sure you get fair treatment.
Q: Are brokers better than buying online?
A: If you have complex needs (business, multiple cars, high-value homes), brokers can often find you better protection at competitive rates.
Q: How many quotes will a broker get me?
A: Good brokers typically compare quotes from 5–10+ companies to find your best option.
Conclusion
An experienced insurance broker can be your biggest advantage when it comes to finding great coverage at a fair price.
They save you time, save you money, and give you expert advice — all while working for you, not the insurance companies.
If you want personalized service, a wider range of options, and extra support when you need it most, a broker might be the perfect choice.