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.

What is a brokerage fee for insurance?

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.

Why do insurance brokers charge fees?

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 do insurance brokers get?

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%.

What is the difference between an insurance agent and a broker?

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.

What to ask your mortgage broker

1. Can you get me an insurance policy from any company?

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.

2. Do you charge a fee?

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.

3. Are you regulated?

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.

 

Rates for other trades

Boiler Insurance estimated cost per month
Estimated cost of Insurance Broker in the UK per month
Location in UKCost per month
Boiler Insurance near Aberdeen£31.00
Boiler Insurance near Amber Valley£29.00
Boiler Insurance near Angus£28.00
Boiler Insurance near Arun£32.00
Boiler Insurance near Ashfield£31.00
Boiler Insurance near Aylesbury Vale£39.00
Boiler Insurance near Barnsley£32.00
Boiler Insurance near Basildon£42.00
Landlord insurance estimated cost per month
Estimated cost of Insurance Broker in the UK per month
Location in UKCost per month
Landlord insurance near Aberdeen£31.00
Landlord insurance near Amber Valley£29.00
Landlord insurance near Angus£28.00
Landlord insurance near Arun£32.00
Landlord insurance near Ashfield£31.00
Landlord insurance near Aylesbury Vale£39.00
Landlord insurance near Barnsley£32.00
Landlord insurance near Basildon£42.00
Motorbike insurance estimated cost per month
Estimated cost of Insurance Broker in the UK per month
Location in UKCost per month
Motorbike insurance near Aberdeen£31.00
Motorbike insurance near Amber Valley£29.00
Motorbike insurance near Angus£28.00
Motorbike insurance near Arun£32.00
Motorbike insurance near Ashfield£31.00
Motorbike insurance near Aylesbury Vale£39.00
Motorbike insurance near Barnsley£32.00
Motorbike insurance near Basildon£42.00