Key Takeaway
- A car insurance broker is an independent, licensed professional who shops multiple insurers on your behalf to find coverage that fits your needs.
- Brokers typically earn commissions from insurers at no extra cost to you. Some also charge a separate service fee, which should be disclosed upfront.
- Brokers are most helpful for those who want expert guidance without the hassle of doing the research themselves, or for drivers with complex needs or poor driving records.
- Jerry is a digital car insurance broker, comparing 100+ insurers in minutes. No phone calls required unless you want to speak with a human.
A car insurance broker is a licensed professional who shops for coverage on your behalf, comparing rates from multiple insurance companies to find a policy that fits your needs and budget. Unlike agents, who represent insurers, a broker represents you and often has a legal duty to act in your best interest.
Jerry is a licensed insurance broker in all 50 states that has helped 1,194,269 drivers find coverage in the last year. Here is how brokers work, what they cost and how to decide if you need one.
Jerry pulls up to 20 quotes from top rated carriers.
What is a car insurance broker?
What sets brokers apart from other insurance professionals is who they answer to. Brokers are not employed by any single insurance company. They work for you, and they are often legally required to put your interests first.
In many states, insurance brokers have a fiduciary duty to their clients, meaning they are legally required to act in your best interest. According to the National Association of Insurance Commissioners, a broker represents you by searching the insurance market to find the right coverage at a competitive price.
Brokers can help with more than car insurance. Many also handle home, renters, life and other types of insurance, so they can help you find the right mix of policies.
Key takeaway: A car insurance broker works for you, not the insurer. They compare policies across companies to find coverage that fits your needs and budget.
Do you need a car insurance broker?
Whether a broker is right for you depends on your situation. Here is a quick decision guide.
Strongly consider
- You do not have time to research policies on your own.
- You want expert guidance on coverage limits and deductibles.
- You are a first-time car buyer or new driver.
- You have unique coverage needs like commercial or high-risk insurance.
- You have a poor driving record or recent claims.
- You own multiple cars or properties and need to coordinate policies.
You may not need a traditional broker if:
- You are happy with your current policy.
- You have straightforward coverage needs and are comfortable choosing a policy without personalized guidance.
Why it matters: Even if you do not need a broker, you should still compare car insurance quotes from multiple companies before buying or renewing. Rates for the same coverage can vary by hundreds of dollars between insurers.
How can a car insurance broker save you money?
One of the biggest advantages of working with a broker, or an app like Jerry, is the ability to compare rates across many insurers at once. Insurance companies use different formulas to calculate your rate, so the same driver can get quotes that vary by hundreds of dollars.
In 2026, the average cost of a full-coverage car insurance policy is approximately $2,578 per year, according to the Insurance Information Institute. With rates that high, even a small percentage in savings can add up. People who shop and save with Jerry save an average of 63%.
Here are the main ways a broker or broker-powered tool can help you pay less.
🔍 Multi-insurer comparison.
Rates for the same coverage can vary by hundreds of dollars between insurers. A broker compares quotes across many companies so you can find the most competitive price. Jerry compares quotes from 100+ insurers in minutes.
🛡️ Safe driver discounts.
Drivers with clean records can save 10% to 30% on their premiums through safe driver discounts, according to major insurers like Nationwide and The Hartford. A broker can identify which insurers offer the deepest discounts for your specific driving history.
📱 Telematics programs.
Usage-based insurance programs track your driving habits through a mobile app and reward safe driving. These programs can save you up to 40% on your premium at renewal, depending on the insurer. A broker can help you find the right program for your driving style.
🏠 Bundling discounts.
Combining your car and home insurance with the same insurer, or mixing and matching through Jerry, can save you up to 40%.
💰 Deductible optimization.
According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive costs by 15% to 30%. Going to a $1,000 deductible can save you 40% or more. A broker can help you weigh the trade-offs.
Jerry recommends: The right broker can help you stack discounts, optimize your deductible and find insurers that reward your driving behavior with a lower rate. Jerry does this automatically in the app.
How to find the right coverage with Jerry
Finding the right car insurance does not have to mean hiring a traditional broker or spending your weekend on the phone. Jerry is a licensed insurance broker in all 50 states that uses technology to compare rates from 100+ insurers in minutes.
Step 1: Create your profile. Share a few details about yourself and your car. It takes about two minutes, and we’ll never sell your data or spam you with calls.
Step 2: Compare quotes. Jerry pulls up side-by-side quotes from 100+ insurers. You can adjust your coverage limits and deductibles to see how they affect your price.
Step 3: Switch and save. Pick the policy that works for you. Jerry handles the paperwork and can cancel your old policy so you don’t have to.
Jerry also keeps an eye on market rates and lets you know when it is time to reshop. Plus, licensed agents are available seven days a week if you want help from a real person.
Jerry pulls up to 20 quotes from top rated carriers.
What is the difference between a broker, agent and comparison app?
Most traditional brokers work through an agent to finalize your policy, which means they stay focused on finding you the right deal rather than selling a specific insurer’s products. Jerry streamlines that process by handling everything in one app
Key takeaway: Brokers represent you. Agents represent insurers. Jerry is a licensed broker that combines the advocacy of a broker without any added delays or complexities.
How are car insurance brokers paid?
Most car insurance brokers are paid through commissions from insurers, typically a percentage of your premium. This commission is not added to your premium since it is normally considered a sales and marketing cost by the insurer. Some brokers also charge a separate fee for their services, so it is worth asking about their full compensation structure before you get started.
According to the NAIC, state insurance regulators set the rules for broker compensation and disclosure, which means requirements vary depending on where you live. Some states require written disclosure of broker fees before you agree to work with them.
Key takeaway: Brokers primarily earn money through insurer commissions, which means most drivers pay nothing extra for a broker’s help. Some brokers do charge a service fee on certain policies, so always ask upfront.
How do you find and choose a car insurance broker?
If you decide a traditional broker is the right choice, here are a few things to look for.
🤝 Look for someone who listens.
A good broker takes time to understand your full coverage needs, your budget and your driving situation rather than rushing to close a sale. That personalized attention is one of the biggest advantages a broker has over shopping on your own.
⭐ Check reviews and references.
Ask friends or family for recommendations. Look for brokers with experience in car insurance and a track record of satisfied clients.
🔍 Verify their license.
Every insurance broker must be licensed in your state. You can check a broker’s license status through your state insurance department’s website. The NAIC also offers a Consumer Information Source tool where you can verify licensing and check for complaints.
💰 Ask about fees upfront.
Get a clear answer on whether they charge a flat fee, a percentage of your premium or both. Find out if the fee is refundable if you cancel.
Key takeaway: A licensed, transparent broker can save you time and money. Always verify credentials and understand fees before signing anything.
Jerry: a digital alternative to traditional car insurance brokers
If you want the benefits of a broker without spam calls or in-person appointments, Jerry is a licensed insurance broker in all 50 states and Washington, D.C. with a team of over 100 licensed agents. Jerry uses technology to compare rates from 100+ insurers in as fast as two minutes.
Over 5 million customers have used Jerry to find coverage, and Jerry’s DataLock Guarantee means zero spam calls. You can do everything in the app, from comparing car insurance quotes to buying or switching your policy, and managing it over time.
Jerry also offers GarageGuard, a tool that helps you estimate repair costs, track scheduled maintenance and find trusted local shops.
The Jerry difference: Jerry is a full-service, licensed insurance broker that handles everything from quotes to purchase in one app, with licensed agents available seven days a week, a guarantee to never sell your data, and ongoing policy management after you buy.
It only takes 2 minutes to sign up at Jerry.
FAQ
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Is a car insurance broker the same as an agent?
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Is it cheaper to use a broker for car insurance?
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What is the downside of using an insurance broker?
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Can a car insurance broker help me find safe driver discounts?
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How long does it take to get a quote through a broker?
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Can a car insurance broker help with home insurance too?
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How does Jerry compare to a traditional car insurance broker?
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Do I need a broker to switch car insurance?
Kayda Norman is an insurance writer and editor with more than 12 years of content experience. She previously worked at NerdWallet as an insurance writer and content management specialist. She has covered a wide range of insurance topics such as high-risk drivers, auto insurance rate factors, and credit-based insurance scores. Her work has been featured in The New York Times, The Washington Post, and USA Today.
Everett Cook is an award-winning journalist and editor with more than 10 years of experience across a variety of industries. In editing for Jerry, Everett’s mission is to help readers have a better understanding of the costs of owning or leasing a car and to better understand their vehicle in terms of insurance and repairs. Prior to joining Jerry, Everett was an editor for Axios. His previous work has been featured in The New York Times, The Los Angeles Times, The San Francisco Chronicle, The Atlantic, Atlantic Re:think, The Boston Globe, USA Today, and others. He’s also been a freelance writer and editor with experience in SEO, audience building, and long-term content roadmaps. Everett is a proud graduate of the University of Michigan.
