"what are car insurance brokers actually?"
Up until fairly recently, only registered members of the British Insurance Brokers’ Association (BIBA) were entitled to call themselves car insurance brokers. What a car insurance broker does is act as a go between or intermediary to match potential customers with insurance companies. They go to the whole market and select the best deal for the customer.
Under BIBA’s operating rules all car insurance brokers must be independent and are obliged to champion consumer interests first and foremost.
What standards can be expected of a car insurance broker?
BIBA registered brokers must adhere to strict operating practices and standards, much of which is designed to protect consumer interests. In order to register with BIBA as a car insurance broker, a company must meet certain criteria including:
registration with the Financial Services Authority (FSA)
independence from car insurance companies
BIBA’s solvency and financial standards.
What are the advantages of using a car insurance broker?
The main advantage of using a car broker is that they are experts in their field and can more easily and accurately compare insurance quotes on a like-for-like basis. No-one likes the tedium and time-consuming nature of shopping for car insurance. Car insurance brokers, then, are like personal shoppers who do all the legwork. And because car insurance brokers are obliged to go out to the whole market in search of the best deal, you can be reassured that their recommendations are not biased or skewed due to other business considerations.
Car insurance brokers also have access to special rates not open to the public and will generally do a much better job of negotiating for discounts on car insurance quotes. In addition, a car insurance broker will fight your corner with the underwriter should you have a problem or need to make a claim.