We will get straight to the point. An insurance broker is an independent agent that works with multiple insurance providers. The broker's job is to help you find the right policy based on your requirements. They are not on the payroll of the insurance providers. Instead, they take a commission for all the policies they sell.

Why do they exist? The answer is quite simple. People do not have the time or expertise to study the policies of different providers. It is where an insurance provider comes in. They review different policies and help you find the right policy. Insurance providers are also quite fond of brokers. After all, they bring them more customers. So, it is a win-win situation.

However, be wary. There are various downfalls to getting car insurance from a broker. This article will elucidate on the pros & cons. Ultimately, it is you who gets to decide whether you prefer a broker or not. Now, let us have a look at the pros first.

Pros

• We do not have the time to visit multiple insurance providers or go through each policy. Brokers are quite handy in this case.
• After you tell them about your requirements, they sift through various policies to find the one which matches your needs. In simple terms, they match your needs with the right policy.
• As ordinary citizens, we are not qualified to understand insurance jargon. Brokers help you understand the different provisions of the policy.
• You might think that you need a particular policy. But a broker might know better. Through their knowledge & expertise, they can help you assess your needs better.

Cons

• Since brokers work on a commission basis, they might try to sell you a more expensive policy to get a better commission.
• A dishonest broker might coax you into buying a policy that you do not need.

Final Thoughts

This sums up our brief article today. Next time you decide to get insurance through a broker, make sure to conduct proper background research. Not all brokers are honest. Some might trick you into buying something which does not meet your requirements. Nevertheless, brokers do provide numerous advantages too. As said before, ultimately, it is your choice if you want to use a broker or not. If you want to avoid one, get your car insured directly through the company's website or their offices.