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 |
---|---|
Critical illness cover near Salisbury | £31.00 |
Critical illness cover near Stroud | £31.00 |
Critical illness cover near Luton | £44.00 |
Critical illness cover near Warrington | £32.00 |
Critical illness cover near North Lincolnshire | £30.00 |
Critical illness cover near Broadland | £35.00 |
Critical illness cover near South Kesteven | £35.00 |
Critical illness cover near East Ayrshire | £30.00 |
Location in UK | Cost per month |
---|---|
Motorbike insurance near Salisbury | £31.00 |
Motorbike insurance near Stroud | £31.00 |
Motorbike insurance near Luton | £44.00 |
Motorbike insurance near Warrington | £32.00 |
Motorbike insurance near North Lincolnshire | £30.00 |
Motorbike insurance near Broadland | £35.00 |
Motorbike insurance near South Kesteven | £35.00 |
Motorbike insurance near East Ayrshire | £30.00 |
Location in UK | Cost per month |
---|---|
Car Insurance near Salisbury | £31.00 |
Car Insurance near Stroud | £31.00 |
Car Insurance near Luton | £44.00 |
Car Insurance near Warrington | £32.00 |
Car Insurance near North Lincolnshire | £30.00 |
Car Insurance near Broadland | £35.00 |
Car Insurance near South Kesteven | £35.00 |
Car Insurance near East Ayrshire | £30.00 |
Location in UK | Cost per month |
---|---|
Public liability insurance for electricians near Salisbury | £31.00 |
Public liability insurance for electricians near Stroud | £31.00 |
Public liability insurance for electricians near Luton | £44.00 |
Public liability insurance for electricians near Warrington | £32.00 |
Public liability insurance for electricians near North Lincolnshire | £30.00 |
Public liability insurance for electricians near Broadland | £35.00 |
Public liability insurance for electricians near South Kesteven | £35.00 |
Public liability insurance for electricians near East Ayrshire | £30.00 |
Location in UK | Cost per month |
---|---|
Boiler Insurance near Salisbury | £31.00 |
Boiler Insurance near Stroud | £31.00 |
Boiler Insurance near Luton | £44.00 |
Boiler Insurance near Warrington | £32.00 |
Boiler Insurance near North Lincolnshire | £30.00 |
Boiler Insurance near Broadland | £35.00 |
Boiler Insurance near South Kesteven | £35.00 |
Boiler Insurance near East Ayrshire | £30.00 |
Location in UK | Cost per month |
---|---|
Income protection insurance near Salisbury | £31.00 |
Income protection insurance near Stroud | £31.00 |
Income protection insurance near Luton | £44.00 |
Income protection insurance near Warrington | £32.00 |
Income protection insurance near North Lincolnshire | £30.00 |
Income protection insurance near Broadland | £35.00 |
Income protection insurance near South Kesteven | £35.00 |
Income protection insurance near East Ayrshire | £30.00 |