Why You Need a Car Insurance Broker
What is a car insurance broker?
A car insurance broker is a licensed insurance professional who helps consumers compare auto insurance products from multiple insurance providers. Unlike agents, who work directly for just one insurance company, brokers are independent professionals able to provide unbiased expert advice to insurance customers.
What does a car insurance broker do?
A car insurance broker requests and compares auto insurance quotes for you to find the best deal and coverage for your individual needs. A broker may work as an individual or with a team at a larger insurance brokerage.
Understand your insurance needs
A car insurance broker can help you determine what type and amount of car insurance you need based on your vehicle, finances, location, and other personal factors.
Car insurance is a highly-regulated and standardized product in Canada, but it’s not one-size-fits-all. Rather than issuing a basic boilerplate policy designed for the average driver, a broker can look at your actual situation and help you set priorities for your coverage.
Drivers who shop for car insurance without a broker are more likely to go with an insurance company’s standard coverage package, which could include features you don’t need, or provincial mandatory minimums, which could leave you seriously underinsured in the event of an accident.
Compare available insurers and quotes
An auto insurance broker’s most important function is their ability to compare quotes from multiple insurance providers across the industry, including companies you may not have heard of.
As of 2026, there are over 196 separate property and casualty insurers actively competing for business in Canada, according to the Insurance Bureau of Canada (IBC). There’s no way an individual consumer can compare auto insurance rates from every carrier, but brokers have access to live quotes from dozens of insurers at a time and can make comparisons on your behalf.
Comparison shopping is the only way to find the best price for the car insurance coverage you need, but it’s a time consuming process, especially if you’re requesting each quote separately. Too many Canadians skip or shortchange the comparison step, leaving valuable savings on the table.
Explain coverage, deductibles and exclusions
Brokers can explain how each type of car insurance coverage works, as well as what’s excluded from a given policy or coverage type. They’ll also explain how your deductible works and help you select the best deductible for your situation.
A recent survey by PolicyMe found that only 26% of Canadians say they know their home and auto insurance coverage in detail, while 13% have little to no idea what their policy covers. Only 72% of millennials and 54% of Gen Z said they felt “confident” that their home or car insurance policy would cover them in the event of a major loss.
The better you understand your coverage, the easier it is to make the right selections. It’s also easier to file a car insurance claim when you understand what your policy does (and doesn’t) cover.
Help arrange the policy and support policy changes/renewals
A broker doesn’t just help you compare car insurance; they’ll guide you through the actual purchase, confirm your coverage is active, and step in to support you when you need to renew your coverage, make changes, or file a claim.
For many Canadians, a car insurance broker is their first point of contact when they get into an accident, buy a new car, add a driver to the household, or make other insurance changes. Brokers often bring a personalized understanding of your location, your family, your vehicle, and other factors that the insurance company that backs your policy may not be aware of.
If you rely on an insurer’s call centre for customer service, you’re likely to talk to a different person every time you reach out for assistance. Working with a broker means that the person on the other end of the line knows you, your vehicle and insurance history, and your needs.
Broker vs. agent/direct: What’s the best way to buy car insurance?
There are two main ways to purchase car insurance in Ontario:
- Work with a car insurance broker to find the best policy and price
- Contact an insurance agent or complete an online form to purchase a policy from a particular insurer
Each shopping method comes with advantages and disadvantages.
What are the benefits of using a car insurance broker?
The primary benefit of using a car insurance broker is the ability to compare quotes from multiple insurers to find the best available price for the coverage you need.
Other benefits include expert guidance, the ability to customize coverage, and access to smaller insurers.
Are there downsides to using a car insurance broker?
Car insurance brokers may have a limited insurance network, charge broker fees, or prioritize certain carriers or products to earn a larger commission.
Questions your car insurance broker can answer
One major advantage of working with a broker is getting access to expert insights on a complex financial market. In addition to helping you save on insurance, brokers can answer your questions about Ontario’s insurance market and how car insurance works.
How do car insurance brokers get paid?
Car insurance brokers are paid by commission by insurance companies for placing business with them. Some brokers charge broker fees, but this is less common.
In most cases, a car insurance broker’s services are free to use. If a broker does choose to charge a service fee, they must disclose this fee in writing before you make any purchase.
How to choose a car insurance broker
Choose a car insurance broker that’s licensed to do business in your area, works with multiple insurers, and does not charge broker fees.
You can find a car insurance broker by searching for local licensed brokerages in your area or by asking friends and neighbours for recommendations. Use the following steps to decide between brokers:
- Verify each broker’s licensing: The Registered Insurance Brokers of Ontario (RIBO) online registry lists all licensed insurance brokers in the province. You can also search the directory by brokerage name.
- Evaluate network size: You can research a broker’s network online or ask directly how many carriers they work with.
- Ask about fees: Inquire upfront about any service fees the broker may charge.
What should you compare when a broker gives you multiple quotes?
If a broker shows you multiple car insurance quotes, start by comparing coverage to find out which policy offers the most robust financial protection.
- Compare coverage first: While auto insurance coverage options are largely standardized across Ontario insurers, some insurers may offer higher limits or unique packages and bundles.
- Look at deductibles: Most Ontarians need deductibles of $250–$1,000 for comprehensive and collision coverage, but some insurers offer higher or lower deductibles.
- Consider exclusions: Ask your broker about exclusions that apply to each policy.
- Research service and claims performance: Does each company have a positive reputation for customer service and claims handling? Ask friends, family, or coworkers for input or search online forums for discussions from real customers.
- Compare price and savings: Once you’ve identified the best coverage and company for you, consider whether that company is offering a competitive price. Take any available discounts into account, such as for paying your annual premium in a single lump sum.
Is using a car insurance broker worth it?
For most Ontarians, using a car insurance broker is worth it because it’s the most effective way to find competitive car insurance prices.
Because each insurance company sets their own complex pricing algorithms, it’s impossible to know without comparing quotes which insurer has the best rates for a given driver. Your driving record, age, location, and vehicle details all impact the quotes you’re eligible for from each insurer.
Brokers give consumers the power to cover as much of the market as possible when comparing quotes. You’ll also get access to expert insights and personalized recommendations that aren’t filtered through an insurer’s compliance guidelines.
Bottom line: If you want to find the best price for car insurance and gain a better understanding of your coverage, it’s worth working with a car insurance broker.
FAQ: Car insurance broker
Methodology
Survey findings discussed in this article are from a survey conducted by PolicyMe from June 26th to June 30th, 2026, among a representative sample of 1,506 online adult Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19 times out of 20.
This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.