How do Insurance Brokers get paid


Insurance brokers act as matchmakers between people wanting insurance and insurance companies. Brokers are also there to help with making claims or dealing with any problems a customer may have with an insurance company. They do not work for any insurance company. Their clients are the people that need insurance. This is often a free service. If it is a free service, then how does an auto insurance broker make money? Here is the answer from Blue Lion Insurance Brokers.

Insurance Companies Pay Them

Although they do not work for a particular insurance company, insurance brokers still get paid by any insurance company that sends new business their way.

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This is not a salary but a commission. It tends to be larger if the broker sends a new client than someone who is renewing a policy or making a change to an existing policy. Some insurance companies pay higher commissions than others.

Charging Fees

Not all insurance brokers work for free. Some will charge a fee. Legally, brokers who charge fees need to tell you this up front before doing any business with you. Fees can be one-time fees, such as a fee to start a policy, or they are recurring, such as whenever a policy is renewed.