Insurance brokers tend to offer free guidance, but some charge a fee for their services, especially for complicated insurance policies or commercial insurance. Find out about insurance brokers’ rates in this guide.
A brokerage fee is the fee an insurance broker charges to help you arrange an insurance policy. A brokerage fee for insurance is typically lower than a mortgage broker fee as insurance brokers make most of their money through commission paid by the insurance company when you take out a policy.
Insurance brokers charge fees to cover the time they spend meeting with you, searching for the right insurance policy, and arranging any applications for you. If they charge a fee, it’s also more likely that they’ll handle any claims for you too.
Insurance brokers’ fees also cover the cost of you changing your mind. A broker will spend a considerable amount of time looking for insurance policies for you, as well as taking all your details and financial history for the application. A fee ensures that the cost of their time doing this is taken into account, unlike if they were just paid by commission when you take out an insurance policy through them.
How much commission insurance brokers get varies depending on the type of insurance they are helping you to arrange. If it’s cover like car or public liability insurance, brokers are usually paid commission between 7.5%-12.5% of the policy premium, whereas buildings insurance and other related products could come with a commission of between 17.5% and 25%.
An insurance agent and a broker can both help arrange an insurance policy for you, but an agent is employed by a specific insurance company. That means that they will only offer you a policy from the insurer they work for. They are still bound to only sell you insurance that meets your needs and that you can afford, but you could miss out on a better deal from another insurance company.
A broker can usually get you an insurance policy from a range of insurers – sometimes the entire market – so you’ll usually get the cheapest policy and best cover from using a broker rather than an insurance agent.
Like mortgage brokers, insurance brokers can be tied to a certain number of insurance companies, meaning they will only offer a policy with the insurers that they have a relationship with. You’ll get a better deal if the insurance broker can find you cover with any insurance company on the market – so make sure you ask them who they work with before you go ahead.
Make sure you ask your broker whether they charge a fee before you agree to work with them. While most insurance brokers will work purely on a commission basis, some will charge if you have more complicated needs, so it’s important to establish how the broker will be paid before you make any commitment.
All insurance brokers must adhere to the Financial Conduct Authority’s (FCA) regulations around selling, arranging and advising on insurance. You should ask your insurance broker whether they are registered on the Financial Services Register, but you can also check this yourself on their website.
| Job | Estimate |
| Travel insurance | £16 per trip |
| Pet insurance | £27 per month |
| Life insurance | £38 per month |
| Landlord insurance | £18 per month |
| Cheap van insurance | £50 per month |
| Cost of public liability insurance for plumbers | £6 per month |
| Cost of public liability insurance for electricians | £5 per month |
| Cheap motorbike insurance | £8 per month |
| Cheap home insurance | £20 per month |
| Cheap contents insurance | £12 per month |
| Cheap car insurance | £40 per month |
| Cheap building insurance | £10 per month |
| Cheap boiler insurance | £10 per month |
| Income protection insurance | £25 per month |
| Critical illness cover | £26 per month |
| Breakdown cover | £7 per month |
| Bicycle insurance | £14 per month |
| Job | Estimate |
| Ford Fiesta car insurance | £45.00 per month |
| Ford Focus car insurance | £53.06 per month |
| Ford Mondeo car insurance | £62.95 per month |
| Ford Kuga car insurance | £75.00 per month |
| VW Golf car insurance | £52.75 per month |
| Vauxhall Corsa car Insurance | £51.39 per month |
| Nissan Qashqai car insurance | £52.79 per month |
| BMW 3 Series car insurance | £44.22 per month |
| Vauxhall Astra car insurance | £49.46 per month |
| Nissan Juke car insurance | £57.14 per month |
| Volkswagen Polo car insurance | £50.29 per month |
| Job | Estimate |
| Cheap Ford transit custom van insurance | £76.18 per month |
| Citroen Relay van insurance | £77.02 per month |
| Volkswagen Transporter van insurance | £84.45 per month |
| Mercedes-Benz Sprinter van insurance | £111.80 per month |
| Vauxhall Vivaro van insurance | £67.76 per month |
| Location in UK | Cost per month |
|---|---|
| Pet insurance near Warwick | £33.00 |
| Pet insurance near Ashfield | £31.00 |
| Pet insurance near Broxtowe | £31.00 |
| Pet insurance near Cheltenham | £32.00 |
| Pet insurance near West Lancashire | £32.00 |
| Pet insurance near Eastleigh | £37.00 |
| Pet insurance near Caerphilly | £30.00 |
| Pet insurance near Stratford-on-Avon | £34.00 |
| Location in UK | Cost per month |
|---|---|
| Contents insurance near Warwick | £33.00 |
| Contents insurance near Ashfield | £31.00 |
| Contents insurance near Broxtowe | £31.00 |
| Contents insurance near Cheltenham | £32.00 |
| Contents insurance near West Lancashire | £32.00 |
| Contents insurance near Eastleigh | £37.00 |
| Contents insurance near Caerphilly | £30.00 |
| Contents insurance near Stratford-on-Avon | £34.00 |
| Location in UK | Cost per month |
|---|---|
| Life insurance near Warwick | £33.00 |
| Life insurance near Ashfield | £31.00 |
| Life insurance near Broxtowe | £31.00 |
| Life insurance near Cheltenham | £32.00 |
| Life insurance near West Lancashire | £32.00 |
| Life insurance near Eastleigh | £37.00 |
| Life insurance near Caerphilly | £30.00 |
| Life insurance near Stratford-on-Avon | £34.00 |
| Location in UK | Cost per month |
|---|---|
| Home insurance near Warwick | £33.00 |
| Home insurance near Ashfield | £31.00 |
| Home insurance near Broxtowe | £31.00 |
| Home insurance near Cheltenham | £32.00 |
| Home insurance near West Lancashire | £32.00 |
| Home insurance near Eastleigh | £37.00 |
| Home insurance near Caerphilly | £30.00 |
| Home insurance near Stratford-on-Avon | £34.00 |
| Location in UK | Cost per month |
|---|---|
| Bicycle insurance near Warwick | £33.00 |
| Bicycle insurance near Ashfield | £31.00 |
| Bicycle insurance near Broxtowe | £31.00 |
| Bicycle insurance near Cheltenham | £32.00 |
| Bicycle insurance near West Lancashire | £32.00 |
| Bicycle insurance near Eastleigh | £37.00 |
| Bicycle insurance near Caerphilly | £30.00 |
| Bicycle insurance near Stratford-on-Avon | £34.00 |
| Location in UK | Cost per month |
|---|---|
| Van insurance near Warwick | £33.00 |
| Van insurance near Ashfield | £31.00 |
| Van insurance near Broxtowe | £31.00 |
| Van insurance near Cheltenham | £32.00 |
| Van insurance near West Lancashire | £32.00 |
| Van insurance near Eastleigh | £37.00 |
| Van insurance near Caerphilly | £30.00 |
| Van insurance near Stratford-on-Avon | £34.00 |