Auto Insurance Agents vs. Brokers in 2024 (Differences Explained)
Insurance agents and brokers help find coverage, but brokers offer options from multiple insurers, unlike agents who are tied to one company. A car insurance broker can help you save up to 25% by comparing quotes. Exploring the differences between auto insurance agents vs. brokers ensures better flexibility and savings.
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Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
UPDATED: Nov 27, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 27, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Auto insurance agents vs. brokers offer different ways to approach buying insurance. Agents work for one insurance company and can only offer policies from that company, using their expertise to help you understand the options available within that insurer.
Brokers, however, work independently, comparing policies from multiple companies to find the best deal for you, often saving you up to 25%. The best broker will assess your needs and offer various options to ensure you get the best price and coverage.
Deciding between an insurance broker and an insurance agent depends on what you need. An insurance agent specializes in policies from one provider, while an insurance broker compares multiple providers to find the best coverage and rates for you.
Read more: Captive vs. Independent Auto Insurance Agents
Start comparing total coverage auto insurance rates by entering your ZIP code here.
- Auto insurance agents offer policies from one insurer
- Auto insurance brokers compare multiple insurers to find better deals
- Choosing auto insurance agents or brokers impact coverage and savings
Auto Insurance Agent Explained
Auto insurance agents work for specific insurance agent companies. The role of an auto insurance agent is to sell policies solely from that company. Agents can help you understand how auto insurance works and the policies offered by their company. These types of insurance agents are trained to explain the nuances of various coverage options.
Top 10 Auto Insurance Agents Companies in the US| Rank | Broker | Description |
|---|---|---|
| #1 | Aon plc | Global firm offering risk, retirement, and health solutions, including auto insurance |
| #2 | Marsh & McLennan Companies | Global leader in risk and strategy with significant auto insurance brokerage services |
| #3 | Willis Towers Watson | Advisory and broking firm providing insurance and risk management services |
| #4 | Arthur J. Gallagher & Co. | International brokerage offering P/C and alternative risk transfer services |
| #5 | Brown & Brown Insurance | Broad range of insurance products, including auto, through licensed subsidiaries |
| #6 | Lockton Companies | Largest privately held brokerage offering risk management and auto insurance solutions |
| #7 | Hub International | North American leader in insurance brokerage with auto insurance offerings |
| #8 | Alliant Insurance Services | Comprehensive risk solutions and auto insurance brokerage services |
| #9 | AssuredPartners | Networked agencies providing tailored auto insurance solutions |
| #10 | NFP Corp. | Diversified insurance and consulting services, including auto insurance |
Agents can also help you choose the coverage that suits your needs. A licensed insurance agent can assist you in filing claims and addressing any issues with your policy, ensuring compliance with all legal and professional standards.
When working with an auto insurance agent, remember that they work for the insurance company, whose main goal is to sell you a policy from that company. Therefore, they won’t offer policies from other companies, which means you may miss out on potential savings or better coverage options.
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Auto Insurance Broker Explained
Auto insurance brokers work independently and offer policies from multiple insurance companies. A licensed insurance broker acts as an intermediary, representing you instead of working for a specific insurance provider. These brokers in insurance are valuable because they help compare policies, negotiate rates, and explain options that non-broker car insurance providers might not disclose.
Top 10 Auto Insurance Brokers Companies in the US| Rank | Company | Market Share | Features |
|---|---|---|---|
| #1 |  | 16.8% | Largest insurer in the US, strong agent network, and excellent customer service |
| #2 |  | 14.1% | Diverse coverage options, competitive rates, and innovative tools like Snapshot |
| #3 |  | 13.8% | Affordable policies, strong online presence, and efficient claim process |
| #4 |  | 10.7% | Personalized service through local agents and a wide range of insurance products |
| #5 |  | 5.9% | Exclusive to military members and their families, known for outstanding customer satisfaction |
| #6 |  | 5.0% | Customizable policies and a variety of discounts available |
| #7 |  | 4.6% | Comprehensive coverage options and an extensive network of local agents |
| #8 |  | 2.1% | Financially stable, offers a variety of insurance products, including auto coverage |
| #9 |  | 2.1% | Personalized service and broad coverage options tailored to customers' needs |
| #10 |  | 2.0% | Wide range of insurance and financial products, including affordable auto insurance policies |
A broker for auto insurance guides you through the insurance market, explains policy terms and conditions, and assists with claims. Unlike agents who only sell policies from one company, brokers work solely in your interest to find the best coverage for your specific needs.
Deciding between an auto insurance agent and broker depends on whether you prefer expert advice from one company or the ability to compare multiple policies for better options and savings.Maria Hanson Insurance and Finance Writer
Using an auto insurance broker will give you access to coverages from a number of companies, often offering more desirable plans and better rates. Be aware that they may charge to represent you, so factor this into your budget when searching for an auto insurance policy.
Explore our guide on auto insurance company vs. broker to learn how brokers can provide more options and better rates, helping you find the best policy that suits your needs.
Picking an Auto Insurance Agent or an Auto Insurance Broker
Both auto insurance agents and brokers can provide valuable assistance in your search for the right auto insurance policy. Choosing between them will depend on your specific needs and preferences.
Advantages and Disadvantages of Auto Insurance Agents vs. Brokers| Aspect | Agents - Advantages | Agents - Disadvantages | Brokers - Advantages |
|---|---|---|---|
| Access to Options | Knowledgeable about the policies of a specific company, providing focused options | Limited to policies offered by their affiliated insurance company | Work with multiple insurance providers, offering diverse coverage options |
| Unbiased Advice | May offer tailored recommendations based on company products | Tied to a specific company, potentially creating bias towards those policies | Provide impartial advice as they are not tied to any single insurer |
| Customization | Can customize policies based on specific offerings from their company | Customization options are confined to what the company provides | Tailor policies across multiple insurers to meet unique needs |
| Expertise | In-depth knowledge of the products and services of their specific insurance company | Limited expertise beyond the products of their company | Expertise in navigating policies across multiple insurers |
| Claims Assistance | Can provide support during the claims process, especially if the company allows it | May not have direct authority in the claims process for complex issues | Act as advocates to guide clients through claims and resolve disputes with insurers |
| Cost | Typically included in the policy premium without additional fees | May not always secure the best price due to company limitations | Can negotiate better deals and compare rates across insurers for better savings |
| Market Reach | Focused on serving local clients and specific demographics tied to their company | Limited ability to cater to high-risk or niche clients outside their company offerings | Suitable for high-risk or niche markets with wide access to multiple providers |
| Convenience | Simplifies policy management when combining multiple products with one company | Requires in-person or phone meetings, which can be time-consuming | Saves time by handling comparison shopping and providing consolidated options |
| Regulatory Knowledge | Stay updated on their company’s policies and legal requirements | Limited understanding of broader market changes outside their company | Stay informed on industry-wide regulatory changes to guide clients effectively |
| Customer Relationship | Builds trust and rapport through long-term, personalized service | Over time, relationships may lead to complacency in policy reviews or updates | Offers personalized attention without bias, fostering strong client relationships |
If you’re looking for a policy from a specific insurance agent or company, an auto insurance agent may be a better choice. They can provide expert advice on that company’s policies and assist you in choosing the right coverage for your needs.
If you want help with comparing auto insurance quotes by state and accessing policies from multiple companies, an auto insurance broker may be the better option. They can provide a wider range of choices and help you find the best policy that meets your needs and budget.
The difference between an insurance agent and a broker depends on your needs. An agent works for a particular company and sticks only to their policies, highlighting the difference between an insurance agent and broker.
In terms of an insurance broker vs. an insurance company, the brokers operate independently, offering policies by multiple insurers for more variety. If you want to compare policies, a broker is often the better choice.
Discussions on insurance agents vs. brokers often show brokers as more versatile, while agents provide specialized knowledge. Compensation can also differ, as seen in debates on insurance broker vs. agent salary, with brokers sometimes earning more for their broader services.
Read more: Average Cost of Auto Insurance
Shopping From an Auto Insurance Agent vs. a Broker
Shopping around for auto insurance requires an expert to guide a person when making the necessary choices, as competition in the marketplace will dictate the best coverage for their needs. Finding an independent insurance agent vs. a broker can really make a difference in the types of policies you can have at your disposal.
What’s worrying you, chum? Whatever it is, I’m here to help.
Kinda like GEICO. Did you know they have licensed agents available day or night?#GEICOsGotYouCovered pic.twitter.com/PxkqYJqXtG
— The GEICO Gecko (@TheGEICOGecko) January 8, 2021
Auto insurance agents typically represent one provider, while brokers offer access to policies from multiple insurers. This is a key point in the ongoing insurance broker vs. agent discussion, as brokers are often seen as providing more flexibility.
Consider your specific needs and preferences when choosing between an auto insurance agent and an auto insurance broker. If you want more variety, a broker might be the better choice.
Insurance broker vs. agent vs. producer and insurance broker vs. agent in the United States are common comparisons that focus on the different roles in the insurance market.
Other online forums, such as Reddit, delve deeper into the pros and cons of insurance broker vs. agent and guide you to make the right decision by comparing policies and asking the right questions.
Read more: Cheapest Auto Insurance Companies
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Frequently Asked Questions
What is an auto insurance agent vs. a broker?
An auto insurance agent works for a single insurance company and offers only that company’s policies. On the other hand, an auto insurance broker operates independently, providing access to policies from multiple insurers, giving you more options to choose from.
What is an insurance broker?
An insurance broker is a professional who helps clients find and purchase insurance from multiple companies. Brokers offer advice, compare quotes, and help clients select policies that meet their specific needs and budgets. Find your cheapest auto insurance quotes by entering your ZIP code into our free comparison tool.
Who does the insurance agent represent?
An insurance agent represents a single insurance company. Their role is to sell that company’s policies and provide guidance on the available coverage options.
Read more: Auto Insurance Premiums Explained
Are car insurance brokers cheaper?
Car insurance brokers can help you find cheaper options by comparing policies from various insurers. However, some brokers may charge a service fee, so consider these costs when evaluating their overall value.
What is an insurance agency?
An insurance agency is an organization that sells insurance policies on behalf of one or more insurance companies. It can include captive agents representing one insurer or independent agents offering policies from multiple providers.
Are insurance brokers worth it?
Insurance brokers are often worth it, especially if you want access to a broader range of policy options. They can save you time and effort by finding the best coverage at competitive rates, though you should account for any service fees they might charge. Check out our guide on affordable full coverage auto insurance to discover how brokers can help you find the best value and coverage options to fit your needs and budget.
Who pays an auto insurance broker?
Insurance brokers are typically paid by the insurance companies they work with through commissions or fees. However, in some cases, they may also receive payment directly from clients for their services.
What is the advantage of an auto insurance broker?
Insurance brokers can offer impartial advice and help clients navigate complex insurance policies. They can also compare different policies and find the best coverage at competitive prices, saving clients time and money.
What is the advantage of an auto insurance agent vs. an auto insurance broker?
Insurance agents often work for a single insurance company, allowing them to offer in-depth knowledge about its products and services. They can provide personalized guidance and support for clients, ensuring they choose a policy that meets their needs.
Read more: Affordable Instant Auto Insurance Quotes
What is the difference between an insurance broker and an agent?
An insurance agent works for a specific company and sells only their policies, while an insurance broker operates independently and offers policies from multiple insurers, giving customers more options and flexibility.
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Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.