An insurance broker is a professional advisor who negotiates insurance details with a number of companies on behalf of a client. Brokers are independent advisors who will act on the customer's behalf and also advise independently and professionally. The advantage with brokers is that since they work independently, a particular company will not influence them and use them to try to sell a customer a poor insurance policy. Insurance brokers are specialists in this field and have the experience, knowledge, and expertise required during these negotiations. They help the customer select a good insurer who will draw up an agreement to suit all the requisites.
Brokers charge some fee for their services. This fee would depend on the number of insurance companies the broker does business with, along with the amount if business the broker does. They can be considered over direct car insurers when the customer needs some valuable advise that is not available through any other resources. They may be able to guide the customer in choosing the best insurance quote available.
Brokers deal with helping the customer choose an appropriate policy, paperwork relating to legalities involved in purchasing insurance, negotiations with the companies, and later with the insurance claims. A direct insurer would definitely not offer such a wide range of services, which is the reason most individuals prefer to go through a broker than buy insurance all by themselves.
Intermediaries also advise individuals and companies on their car insurance needs. Intermediaries take care of negotiations and arrangement of policy on behalf of the customers. Banks are the best intermediaries in par with associations such as AAA and RAC.
In addition to the fee charged by the brokers, the insurers also provide them contracts when a customer ends up buying a policy from that company. It is good practice to shop around for a good broker who will not cheat just to get a larger commission from a badly reputed company.