A broker fee is the amount you pay an insurance broker for their advice and work in finding and arranging the right insurance policy for you. It can be a flat fee or a percentage of your premium and is always disclosed upfront.
Why It Matters
Helps you understand what you are paying for when using a broker.
Shows how brokers add value beyond what insurers provide.
Makes it easier to compare policies and services.
Ensures transparency in the cost of expert guidance.
Show Transcript
Have you ever looked at your insurance quote and thought, "What's this broker fee and why am I paying for it?" Well, that's a totally fair question. Let's clear that up. A broker fee is just one part of how an insurance broker gets compensated. Most brokers earn a commission from the insurer, and that's a percentage of the base premium. On top of that, most will charge a broker fee to cover the time, advice, and service that they provide. Things like comparing policies, handling renewals, and managing claims. So, you're not just paying for paperwork. You're paying for expertise, experience, and advocacy when it matters most. So, next time you see a broker fee, you'll understand what it's for and why it's there. Because good advice and the right cover go hand in hand.
What a Broker Fee Includes
Insurance advice that fits your situation and risks.
Market comparison across multiple Australian insurers.
Help with claims, including speaking with the insurer on your behalf.
Ongoing policy reviews as your needs or business change.
Policy setup and paperwork, which saves you time and avoids errors.
Simple Examples
You pay a $300 flat fee for a broker to set up your small business insurance.
Your broker charges 10 percent of your annual premium for managing your farm insurance and providing year round support.
A broker reviews your home and contents cover each year and charges a small service fee for the review.
Common Mistakes or Misunderstandings
Thinking broker fees are hidden. They must be disclosed before you agree to anything.
Assuming brokers work for insurers. They work for you, not the insurance companies.
Believing the fee is unnecessary. It covers expertise, research, and claim support that can save you money and time.
Comparing broker fees without comparing services. Cheaper is not always better.
When to Speak to a Broker
If you feel unsure about coverage, want help comparing policies, or need support with a complex risk, a broker can guide you with clear and practical advice.
Need help?
If you want clear guidance on your insurance options, reach out to Tank Insurance brokers and we can walk you through what makes sense for you.
