Car Insurance Broker in Canada: 2024 guide

Have you ever wondered what a car insurance broker does? How do they stack up against insurance agents? Oh yes, they differ from each other in a lot of aspects.

But did you know you can buy insurance without a broker? How do you get quotes? Find all the answers here.

In this guide, we take you through how car insurance brokers work, what they do, and their pros and cons. You can also use our free tool to compare the best car insurance quotes right here and find the best deals based on your unique needs.

What is a car insurance broker?

A car insurance broker is a licensed professional who is an intermediary between you and insurance companies to help you find the best car insurance policy. They work for you, the customer, instead of a specific insurance company.

Here's what a car insurance broker usually does:

• Assesses your needs: They'll talk to you to understand your driving habits, car type and budget to determine the right level of coverage.
• Compares quotes: They get quotes from multiple insurance companies based on your needs.
• Recommends a policy: They'll explain the different quotes and recommend the policy that best suits your situation.
• Assists with claims: Some brokers can also help you navigate the claims process if you're in an accident.

In short, a car insurance broker can save you time by shopping around for you and ensuring you get the right coverage. You don't necessarily need a broker to shop around, though. You can use our comparator to compare plans from different Canadian companies. It's free to use and gives you results in a few quick steps.

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How does a car insurance broker differ from an insurance agent?

Both insurance brokers and agents help you find insurance policies, but they differ in who they represent and the options they offer.

Who they represent

• Insurance broker: Works for you, the client. Their job is to find the policy that best suits your needs, regardless of the insurance company.
• Insurance agent: Works for a specific insurance company (or a small group of companies). Their primary function is to sell policies offered by their company.

Finding policies

• Insurance broker: Shops around and compares policies from multiple companies. This gives you a wider range of options and potentially better rates.
• Insurance agent: Can only offer policies from the companies they represent. You might get a good deal if it aligns with your needs, but you have fewer choices.

Focus

• Insurance broker: More of an advisor. They assess your needs, recommend policies and help you navigate the insurance landscape.
• Insurance agent: Primarily focused on selling policies. They'll explain the coverage offered by their company but may not do a deep comparison with other options.

Other factors to consider:

• Compensation: Brokers typically charge a fee for their service, while agents get a commission from the insurance companies they sell for.
• Expertise: Brokers often specialize in certain insurance types, like business insurance, while agents might have broader or company-specific knowledge.

Which one is better?

• Use a broker if you need complex coverage, want a wider selection of policies or prioritize unbiased advice.
• An agent might be suitable if you have simple insurance needs, prefer a trusted representative of a particular company or are budget-conscious (as brokers might have fees).

Ultimately, it's good to talk to both brokers and agents to see which one best suits your situation.

Can you buy car insurance without a broker?

Yes, you can buy car insurance without a broker.

It's becoming increasingly common for people to purchase car insurance directly. Here are the two main ways to do it:

1. Directly from the insurance company: Many car insurance companies allow you to get quotes and buy policies directly through their website or mobile app. This is a convenient option, and you can often compare different coverage options and get an immediate quote.
2. Online insurance marketplaces: These websites allow you to compare quotes from multiple insurance companies in one place. You can enter your information and get quotes from several insurers at once. This can be a good way to find the best rate for your needs.

We have a free tool that you can use to compare car insurance policies from leading companies in Canada. Just fill in some basic details and start comparing your options.

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Still not sure about getting car insurance directly? Here's a quick comparison of buying with and without a broker to ease your decision-making:

Factor	Buying With a Broker	Buying Directly
Convenience	Less convenient (requires talking to the broker)	More convenient (can be done online)
Selection	Wide range of companies and policies	May be limited to companies the broker represents
Cost	May involve a broker fee	Potentially cheaper (no broker commission)
Expertise	Broker can provide guidance and answer questions	Requires you to understand different coverages

To sum it up, consider buying without a broker if:

• You are comfortable researching and understanding different car insurance policies.
• You have a good understanding of your car insurance needs.
• You are on a budget and want to avoid broker fees.

How to find a car insurance broker near me?

There are many ways to find a car insurance broker in Canada. You might already be familiar with some of these. For instance, you can use review websites like Yelp or Google My Business to find brokers in your area and read reviews from other customers.

Alternatively, you can ask for recommendations. Talk to friends, family, colleagues or your mechanic for recommendations on car insurance brokers they use and trust.

And then we have online directories:

1. Insurance Broker Association of Canada (IBAC): The IBAC website has a broker locator tool that allows you to search for brokers by region and area of expertise.
2. Canadian Brokers Network (CBN): The CBN website offers a directory of independent insurance brokers across Canada.

And how can we forget the easiest and most convenient way: search engines? You can use a search engine like Google to find brokers in your city.

You got the idea, right? Just the thing you’re looking for + the location where you’re looking for it. That’s it, and you’ll find something relevant.

How to become a car insurance broker in Canada?

The process of becoming a car insurance broker in Canada varies slightly by province, but here's a general roadmap:

1. Complete educational courses

Most provinces require you to complete specific insurance broker courses before taking the licensing exam. These courses provide you with foundational knowledge about insurance products, regulations and client service.

Look for the relevant insurance council in your province. Here are some resources:

• Insurance Council of British Columbia
• Registered Insurance Brokers of Ontario (RIBO)
• The Autorité des marchés financiers (AMF) for Quebec

2. Pass the broker licensing exam

Each province has a licensing exam for becoming a broker. The exam tests your knowledge of insurance principles and practices relevant to your province. The provincial insurance council resources we mentioned earlier have information on the licensing exam.

3. Gain work experience (optional for some provinces)

While not mandatory in all provinces, some require working under a licensed broker for a specific period (e.g., one year in Ontario) to gain practical experience.

4. Obtain your broker's license

Once you've passed the exam and met any experience requirements, apply for your official broker's license through the provincial insurance council. Most provinces require brokers to complete ongoing continuing education courses to maintain their licenses.

How to file a car insurance claim through your broker?

Your car insurance broker can assist you with filing a car insurance claim. The first step would be to reach out to your broker as soon as possible after an accident. They'll be able to guide you through the claim process and answer any questions you have.

Moving on, your broker will start gathering information, such as:

• Accident details: Your broker will likely ask for details about the accident, including the date, location and parties involved (if any).
• Documents: They may also request copies of relevant documents such as your driver's license, car registration and police report (if filed).

When it comes to claim initiation, in most cases, your broker will initiate the claim on your behalf with the insurance company. They'll handle the communication and paperwork.

Here’s what comes next: the repair process.

• Recommendations: Some brokers might have preferred repair shops they work with. They can help you get an estimate for repairs on your car.
• Your choice: You are not obligated to use a recommended repair shop. You can get quotes from other shops as well.

Claim follow-up:

• Your broker: They will stay in touch with the insurance company and keep you updated on the claim status.
• Questions and concerns: If you have any questions or concerns throughout the process, don't hesitate to reach out to your broker.

Throughout the process, your broker will offer you guidance and support. They can explain the claim process and help you navigate the paperwork. In some cases, they may advocate for you to ensure you receive a fair settlement.

How to find a good car insurance broker?

Finding a good car insurance broker can be challenging, especially if you don’t know what to look for. Here is a small checklist that you must follow when looking for a broker:

• Check their license and credentials: Make sure the broker is licensed to sell insurance in your province.
• Ask about their experience: Look for a broker who has experience working with clients in your situation (e.g., young drivers, high-performance vehicles).
• Ask about fees: Some brokers charge a fee for their services, while others get paid commission from the insurance companies they sell for. Be sure to understand how the broker will be compensated before you decide to work with them.

Also, don't just go with the first broker you talk to. Get quotes from a few different brokers to compare rates and coverage options. You can do it right here, using our comparator.

Compare Canada's best car insurance plans

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