When you shop for car insurance in California, you can buy directly from an insurance company, go through a captive agent, or work with an independent broker. They can look similar, but they work very differently.
Captive agents sell one company
A captive agent represents a single insurer. They can find you the best policy from that company, but they can’t show you what anyone else would charge.
Brokers compare many
An independent broker is licensed to place coverage with multiple carriers. Because every insurer weighs your driving record, mileage, experience, ZIP code and vehicle differently, the same driver can get very different prices. A broker’s job is to find the one that prices you best.
Does a broker cost more?
Getting a quote is free. Insurers pay brokers a commission that is built into the rates they file with the California Department of Insurance. If a broker charges a separate broker fee, California requires it to be disclosed to you in writing up front.
When a broker helps most
- You have a ticket, accident, DUI or a lapse in coverage
- You’re adding a teen driver
- Your renewal price jumped and you want to see what else is out there
- You simply don’t want to fill out ten different quote forms