A car insurance broker is like an agent that works for you and gives you a variety of options in auto insurance. A car insurance broker generally works with several insurance providers to provide you with a wide range of car insurance rates. Because they receive a portion of the premium you pay from each provider they are able to offer you the best rate possible. Most brokers are compensated by a portion of the premium you pay so you never have to pay for them to help you shop for insurance. In this way you can find the best deal without having to spend a penny more than you would if you shopped for the insurance yourself.

When you look for a car insurance broker, you should first ask whether or not he or she receives a commission on the policies he or she sells. If he or she does you may want to ask what type of commission he or she is paid on these policies. If you know the policy length and your state requirements, you can request the details of each policy to see which policies will give you the best coverage at the best rates. You may also be asked if you have already bought a policy from this broker and just need the quote for your next policy. In some cases, if you already have a policy and need a quote it may be cheaper for you to purchase the policy from him or her at this time because you already know the coverage you need. Most brokers do not receive any compensation if you buy a policy from them.

In some cases when you call car insurance agents he or she will give you a quote directly from a provider, but you will not know if the quote is from the broker or the actual provider. You can ask the broker for a copy of the disclosure statement for the policy. This statement tells you how much the insurance company pays out in the event you have to make a claim. It also tells you what portion of that claim you will be responsible for paying. Brokers receive commissions only if they sell enough policies to make money. The more they sell the policies the higher their commission.