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 |
|---|---|
| Public liability insurance for electricians near Ipswich | £33.00 |
| Public liability insurance for electricians near Thanet | £30.00 |
| Public liability insurance for electricians near Derby | £29.00 |
| Public liability insurance for electricians near Reigate & Banstead | £47.00 |
| Public liability insurance for electricians near East Hertfordshire | £42.00 |
| Public liability insurance for electricians near South Somerset | £34.00 |
| Public liability insurance for electricians near Torbay | £28.00 |
| Public liability insurance for electricians near Epping Forest | £47.00 |
| Location in UK | Cost per month |
|---|---|
| Critical illness cover near Ipswich | £33.00 |
| Critical illness cover near Thanet | £30.00 |
| Critical illness cover near Derby | £29.00 |
| Critical illness cover near Reigate & Banstead | £47.00 |
| Critical illness cover near East Hertfordshire | £42.00 |
| Critical illness cover near South Somerset | £34.00 |
| Critical illness cover near Torbay | £28.00 |
| Critical illness cover near Epping Forest | £47.00 |
| Location in UK | Cost per month |
|---|---|
| Home insurance near Ipswich | £33.00 |
| Home insurance near Thanet | £30.00 |
| Home insurance near Derby | £29.00 |
| Home insurance near Reigate & Banstead | £47.00 |
| Home insurance near East Hertfordshire | £42.00 |
| Home insurance near South Somerset | £34.00 |
| Home insurance near Torbay | £28.00 |
| Home insurance near Epping Forest | £47.00 |
| Location in UK | Cost per month |
|---|---|
| Public liability insurance for plumbers near Ipswich | £33.00 |
| Public liability insurance for plumbers near Thanet | £30.00 |
| Public liability insurance for plumbers near Derby | £29.00 |
| Public liability insurance for plumbers near Reigate & Banstead | £47.00 |
| Public liability insurance for plumbers near East Hertfordshire | £42.00 |
| Public liability insurance for plumbers near South Somerset | £34.00 |
| Public liability insurance for plumbers near Torbay | £28.00 |
| Public liability insurance for plumbers near Epping Forest | £47.00 |
| Location in UK | Cost per month |
|---|---|
| Pet insurance near Ipswich | £33.00 |
| Pet insurance near Thanet | £30.00 |
| Pet insurance near Derby | £29.00 |
| Pet insurance near Reigate & Banstead | £47.00 |
| Pet insurance near East Hertfordshire | £42.00 |
| Pet insurance near South Somerset | £34.00 |
| Pet insurance near Torbay | £28.00 |
| Pet insurance near Epping Forest | £47.00 |
| Location in UK | Cost per month |
|---|---|
| Life insurance near Ipswich | £33.00 |
| Life insurance near Thanet | £30.00 |
| Life insurance near Derby | £29.00 |
| Life insurance near Reigate & Banstead | £47.00 |
| Life insurance near East Hertfordshire | £42.00 |
| Life insurance near South Somerset | £34.00 |
| Life insurance near Torbay | £28.00 |
| Life insurance near Epping Forest | £47.00 |