What Exactly is a Broker Fee?

A broker fee is the payment you make to an insurance broker for their expertise and services in helping you find the right insurance policy. 

This is a direct fee charged to you, the client. It might be a flat fee (e.g., $200 for arranging a policy) or a percentage of your premium (e.g., 10% of your annual premium). The fee is usually disclosed upfront, so there are no surprises.

Unlike insurers who create and sell insurance products, brokers act as your guide in navigating insurance. 

They don’t work for the insurance companies; insurance brokers work with you, searching the market to find policies that match your needs and budget.

Why Do Brokers Charge Fees?

You might be wondering why you still pay a fee when you’re already paying for insurance. It’s a fair question! 

Here’s why broker fees exist:

1. Expert Advice Tailored to You: Insurance policies aren’t one-size-fits-all. Insurance brokers assess your unique situation and recommend policies that suit your needs.
   
   
2. Market Research: Brokers compare dozens of insurers to find competitive premiums and coverage options, saving you hours of research.
   
   
3. Claims Support: If you need to make a claim, brokers can help you through the process and deal with the insurer.
   
   
4. Ongoing Support: Insurance change over time. Insurance brokers review your policies regularly to ensure they still work for you.

Basically, a broker fee covers the time, expertise and resources brokers invest to make your insurance experience smoother and more cost-effective.

Ready to find the right policy for you? Contact us at Tank Insurance! 

Don’t forget to also read our blog and our free Health Check eBook for more info. 

Remember: it’s best to have an expert in your corner.