Is using a car insurance broker worth it?

Car insurance brokers are like mortgage brokers and offer assistance with cutting through the car insurance jargon to help you get the best policy for you. A broker will take your details and research the current offers in the market, compare the different products offered by the insurance companies and help you choose the most suitable cover.

A car insurance broker’s fee generally depends on their engagement model and the level of service you need. Many brokers are paid a commission in the form of a one-off fee or percentage of the premium amount by the insurers they send clients to and may not charge you a fee for their services.  

If you need help to insure a fleet of cars or you’re looking for a complex product, such as a personalised cover for your modified performance vehicle, you may be charged a one-off fee by your broker. 

You must remember to ask a car insurance broker about any fees they may charge you or if they take a commission from the insurers when selling a policy. If they do charge you a fee, it’s up to you to weigh the cost and benefits of working with a car insurance broker. If you’re feeling confused, you can always start your search by comparing insurance products and offers online.

Ultimately, using the services of a car insurance broker depends on the type of product you need, your budget, and how much help you need.

 For example, you may need guidance to determine the right type of insurance for your high-performance luxury vehicle. Besides offering you competitive quotes from different insurance providers, an insurance broker could help you while making a claim and can represent you while dealing with the insurer. 

Your car insurance broker may also provide an annual review of your car insurance and advice on what else is available in the market, any offers or add ons and if you should change insurers. Overall, a specialist car insurance broker can make it quite simple for you to choose the right type of cover for your car at a competitive price. 

However, that doesn’t mean you cannot do it yourself. Comparison tools, such as RateCity’s comparison tables, allow you to compare insurance products and quotes from different insurers. You can use RateCity’s comparison tables to search and compare insurance products by state or features and find quotes that are unique to your situation. 

Once you shortlisted some suitable offers, remember to read the Product Disclosure Statement (PDS) for each before making the final decision. Many car insurers support online payments and claim services, which could make it easier for you to manage your car’s insurance on your own. 

You’ll find detailed information about the various types of fees charged by the insurer and other payments and claims related information in the PDS that will help you understand the product better and make an informed choice.