Whether you’re buying home, tenant, condo, or car insurance, it’s always a good idea to get quotes from multiple insurers to find the best price and policy that works for you. While you can do this on your own, a licensed insurance broker like YouSet can make the process much easier and faster.
But what is the difference between an insurance agent and a broker? What exactly does an insurance broker do? Do you have to pay to use one? Find the answers to these questions and more in this article.
What is an insurance broker?
An insurance broker is a licensed professional who helps you find the best insurance policy for your needs by comparing quotes from multiple insurers. Unlike insurance agents who work for a single insurer, brokers work for you, so their goal is to match you with coverage that best fits your needs and budget.
Their role is to understand what kind of insurance you’re looking for, then search the market for the best options. They’ll walk you through your choices, ensuring you’re not overpaying or missing key coverage. Because brokers aren’t tied to just one company, their advice is typically more objective and personalized.
Take YouSet, for example. As an insurance broker, we use thousands of algorithms to search the market and apply exclusive discounts to find users the best price. Plus, our brokers are licensed by RIBO in Ontario and AMF in Quebec, ensuring they’re fully regulated and equipped to give you professional, trustworthy advice.
What does an insurance broker actually do?
Insurance brokers sound helpful, but what does it really mean for you? Here’s a quick look at what insurance brokers actually do:
- Understand your situation and find out what kind of coverage you need
- Assess any risks in your life or property that should be protected
- Explain the details of each policy and answer any questions you might have
- Compare different options and find a policy that fits your lifestyle and budget
- Help you understand what you’ll pay
- Be there for support or when you have questions
- Provide additional support should you ever need to make a claim
Who pays an insurance broker?
You, the customer, don’t pay your insurance broker. Instead, insurers pay the broker to sell their policies.
Brokers make a commission from the insurer when you buy a policy. Usually, it is a percentage built into the price of each policy, ranging between 10% and 20%, depending on the type of insurance and the insurer.
While some brokers may charge a service fee, it’s usually because they provide extra services, manage high-risk policies, or arrange coverage through specialty insurers. If they do, they’re required to disclose the fee upfront so you can make an informed decision.
Insurance broker vs. insurance agent: What’s the difference?
An insurance broker and an insurance agent are not the same thing. The main difference is that an insurance broker works for you, helping you shop around and compare policies from multiple insurers, while an insurance agent usually only represents one insurer and sells only their products.
Here are the key differences between brokers and agents:
Insurance broker
- Works independently
- Sells products from multiple insurers
- Unbiased, not tied to one insurer
- Licensed and acts in your best interest
- Paid by commission from the insurer after a policy is sold
Insurance agent
- Works for a single insurance company
- Sells only their company’s products
- Doesn’t compare quotes from other insurers
- Represents the insurance company, not you (the client)
- Paid a fixed commission rate by their employer
5 reasons why you should use an insurance broker in Canada
If you’re wondering whether it’s better to use an insurance broker or go direct, the answer is it depends. While both options can work, using a broker is often well worth it, especially when you want the best coverage at the best price without the hassle.
In fact, here are the top five reasons why you should use a broker when shopping for insurance for your home and car:
1. Brokers save you money with exclusive rates and discounts
One of the biggest perks of using a broker is the savings. Many insurers offer brokers preferred pricing and special discounts you won’t find online or by going direct. These exclusive rates aren’t advertised to the public, which means a broker can often get you a better deal, helping you save money on home and car insurance.
2. Brokers are (usually) free
Brokers are paid by insurers, not by you. In most cases, you get all their support, savings, advice, and tools at no extra cost. This means you can take advantage of their expertise and get help choosing the right policy without paying anything more than you have to.
3. Brokers save you time
Comparing insurance quotes on your own can take you hours. Unless you know exactly what you’re looking for, you might only focus on the price. But the price alone doesn’t tell you what you’re actually getting.
Brokers use smart tools and algorithms to compare quotes from multiple insurers at once, looking at both price and coverage. This way, you get a better value overall, not just the lowest number on a screen.
4. Brokers are licensed experts
In Canada, insurance brokers must be licensed by provincial regulatory bodies like RIBO in Ontario or AMF in Quebec. They’re trained to assess your needs, explain your coverage options in plain language, and help you make informed decisions. Basically, they know their stuff, so you don’t have to.
5. Brokers can advocate for you
While brokers can’t file claims for you, they’re still a great support system through the process. They can guide you through the claims process, help you understand what to expect, and offer support if things get complicated.
Next steps: Use an insurance broker like YouSet for the best policy
Using a trusted insurance broker like YouSet is one of the easiest ways to save money and get coverage that fits your needs. Our technology compares quotes from several Canadian insurers at once and helps you lock in the best deal with exclusive discounts, all under 4 minutes, making it one of the best ways to find more affordable home, tenant, condo, and auto insurance in Canada.