A car insurance broker is a professional agent that works on your behalf to help you arrange and finance car insurance policies. In order to qualify as a broker, the broker needs to be licensed by the state where he or she practices. Most car insurance brokers work for themselves and are not affiliated with any particular insurance company. Instead, they use their personal knowledge and experience to look around for new car insurance deals and negotiate directly with insurance companies on your behalf. The insurance companies then pay the broker a commission in order to carry out these tasks for them. Brokers can also refer customers to independent insurers for coverage.
There are some car insurance brokers who work independently but charge higher rates than those working for an insurance company. It's a good idea to research your options before signing up for a policy from a particular broker. Compare prices from different brokers by visiting their websites and comparing them side-by-side. Try to find one who charges the lowest rate based on what you need. Also, find a broker who offers incentives, such as discounts and rebates, for referrals made through his or her website.
If you decide to buy car insurance with the assistance of a car insurance broker, remember to check credentials and references. You may also want to request copies of any legal documents or letters of reference that show proof of the broker's credibility. This will help protect your rights as the buyer and provide an assurance that the broker has met the requirements and guidelines set by the state you live in. Also, make sure that the broker you choose is familiar with your specific insurance needs. Having a knowledgeable and competent broker will help you save more money on premiums in the long run.