Typically, brokers are compensated through commissions paid by the insurance companies when they sell a policy. In some cases, they may charge a fee to the client. It's important to discuss payment arrangements upfront.

Dig deeper

Insurance brokers are typically paid by the insurance companies they work with, earning a commission on the policies they sell. This means their services are often free to you as the client.

Real World Example

When you purchase an auto policy through a broker, the insurance company pays the broker a commission, so you don’t have to pay for their service directly.

Expert Considerations

Ask your broker if their services are free to you as the client, and confirm that they disclose any commissions or fees upfront.

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