Insurance broker or comparison website?

An insurance broker works for you, not the insurer, and can approach a wide range of insurance providers to find cover that fits your circumstances. A comparison website does the opposite: it gathers quotes from the insurers that have signed up to it and lets you sort them by price. Both are free to use in most cases, and both are paid by commission from the insurer whose product is sold. The difference is who does the work and how much the cover is tailored to you.

The choice usually comes down to how complicated your needs are. If you want a standard car or home policy and you are happy to compare prices yourself, a comparison site is quick and shows you a lot of options at once. If your circumstances are complex, out of the ordinary or you are insuring something unusual, a broker can advise on the type and level of cover you need and recommend a suitable policy. MoneyHelper puts it plainly: "If your circumstances are complex, out of the ordinary or you're insuring something unusual, you might want to use a specialist broker."¹

Whichever route you take, the same protections sit behind it. Brokers are regulated by the Financial Conduct Authority, complaints can go to the Financial Ombudsman Service, and eligible insurance is covered by the Financial Services Compensation Scheme if the insurer fails. This page sets out how each route works, what it costs, and where the protection stops.

Brokers act for you, not the insurer

An insurance broker is a regulated financial adviser who specialises in general insurance. Their defining feature is whose side they are on. As BIBA, the trade body for brokers, puts it: "An insurance broker will put your interests first. They work for you, not the insurance company."² MoneyHelper describes the same relationship from the consumer's side, calling a broker "a regulated financial adviser who specialises in general insurance"¹.

That duty shapes everything else. Brokers act as intermediaries between customers and insurance providers, and they have permissions and legal authority to act on behalf of their customers⁵. In practice that means a broker can ask an insurer questions on your behalf, argue your case at renewal, and take on some of the paperwork that would otherwise fall to you.

It is worth being precise about what a broker is not. A broker does not offer insurance itself; it helps you find an insurer⁶. The insurer carries the risk and pays the claim. The broker's job is to match you to the right insurer and to represent you in the relationship.

There is also a distinction between a broker and a comparison site that is easy to miss. A comparison site is a shop window: it displays prices and lets you choose. A broker is an adviser: it asks about your circumstances and recommends. MoneyHelper notes that the policies you will be offered on a comparison website "will be fairly generic", so if you want cover that meets your individual needs, that is where a broker comes in¹.

Access to a wide range of insurers

Brokers can provide advice and access a wide range of insurance providers to help you find solutions for all types of cover². That breadth is the main practical advantage. Where a comparison site shows you the insurers that have signed commercial agreements with it, a broker can approach insurers that do not appear on comparison sites at all.

That matters more than it sounds. Not all insurers are on price comparison websites. Direct Line and NFU Mutual are both examples of insurers that do not appear on them⁷. A consumer who only ever uses comparison sites will never see those providers, however many sites they visit.

The same limitation applies within comparison sites themselves. Independent Age advises consumers to "always use more than one site, no one site can list all the different providers"⁸. The main comparison sites for insurance are Compare the Market, Confused.com, GoCompare and MoneySuperMarket⁷. Each has its own panel of insurers, and the panels overlap but do not match.

A broker's access is not unlimited either. Some brokers are whole-of-market and some are not. Mortgage Advice Bureau, for example, is not a whole-of-market broker⁹. If breadth matters to you, it is worth asking a broker directly whether they search the whole market or a panel.

Costs and fees: what a broker must tell you

Brokers are usually paid by commission from the insurer whose product you buy. MoneyHelper states it directly: "They are paid by commission, and their professional opinion can be valuable if your insurance needs are complicated."¹ Comparison sites work the same way: "Like comparison sites, they get paid commission by the insurance provider for selling their products."¹

Commission is not the whole picture. Brokers must provide clear documents and information including details on the costs of insurance and any fees charged². If a broker charges a fee on top of the premium, that fee has to be disclosed to you. The rule exists so that you can see what you are paying for the advice, rather than having it buried in the premium.

The FCA's rules on what firms must tell you are detailed. Before a pure protection contract is concluded, a firm must communicate information including the name of the insurance undertaking, the definition of each benefit and option, the term of the contract, the means of terminating it, premium information, cancellation arrangements, tax arrangements and complaints arrangements¹⁰. At renewal, a firm must provide in good time the premium to be paid on renewal, the last year's premium for comparison, a statement that the level of cover is appropriate and may be compared with prices from alternative providers, and whether the contract will automatically renew¹⁰.

There is a wider point about how insurance is priced. Insurers consider a variety of factors when calculating a premium, and it can vary depending on the insurer, your individual circumstances and the particular risk being covered¹¹. That is why two brokers, or a broker and a comparison site, can return different prices for what looks like the same cover.

Help when you need to make a claim

This is where the difference between the two routes shows most clearly. If you need to make a claim, your broker might speak to loss adjusters and claims departments on your behalf¹. BIBA lists "support at the time of a claim" as one of the core things a broker provides². MoneyHelper adds that this can "reduce the chances of your claim being rejected"¹.

The practical steps are the same either way, but who you contact differs. Where a broker is involved, the notification rule is to notify the broker as soon as is practically possible on believing a claim is needed; where the policy is held directly with the insurer, the insurer is contacted instead¹². For vehicle theft, the guidance is to tell the insurance broker as quickly as possible¹³.

Where a broker's involvement can matter most is in disputes about what was sold. The Financial Ombudsman Service has looked at cases where a broker was acting as the insurer's agent in connection with the sale of a policy, which changes who is responsible for what¹⁴. In underinsurance complaints, the ombudsman asks whether the broker was acting for the insurer or for the customer, because that determines where the fault lies¹⁴.

If a claim is rejected, the route to challenge it runs through the insurer first. The complaints process is to appeal to the insurer first, explain clearly what went wrong from the customer's perspective and how the problem would like to be resolved¹⁵. If that fails, the ombudsman can look at it.

Broker or comparison website: how each one works for you

The two routes suit different situations. Set side by side, the differences are about tailoring, breadth and who does the work.

A broker tends to suit you if your circumstances are complex, out of the ordinary or you are insuring something unusual¹. MoneyHelper gives two examples: a high-value antique, or travel insurance with a pre-existing condition¹. Brokers can also help identify insurers or products for people with complex and pre-existing health conditions, with details provided by some patient groups¹³.

A comparison site tends to suit you if you want a standard policy and you are willing to do the comparing yourself. Independent Age's advice is to use more than one site, get at least three quotes including one not on a comparison site, and compare like with like⁸. That last point matters: a cheaper premium often reflects a lower level of cover, not a better deal.

Complaints and protection: FOS and FSCS

Two schemes sit behind both routes, and they do different jobs. The Financial Ombudsman Service handles complaints about how a firm treated you. The Financial Services Compensation Scheme pays out when a regulated firm fails and cannot meet its obligations.

On complaints, brokers offer a free and easy-to-use complaints service via the Financial Ombudsman Service². The ombudsman can order a firm to put things right. In one case it told a broker to refund the costs of setting up and ending a mortgage¹⁷. The ombudsman's compensation limit is £455,000, plus interest, for complaints referred on or after 1 April 2026⁴.

On failure, brokers provide security for eligible classes of insurance through the Financial Services Compensation Scheme². The levels depend on the type of insurance:

• Compulsory general insurance, such as motor cover, is protected in full at 100%³.
• Most other general insurance, including property and health cover, is protected at 90% of the claim³.
• Credit insurance, marine insurance, aviation insurance and contracts of reinsurance are not eligible for FSCS protection¹⁸.

The FSCS also covers some situations where a broker itself has failed. If you were mis-sold an insurance policy and lost money and that firm failed, or you were the victim of fraud where the broker has gone out of business and cannot return premiums or money owed, you may be able to claim¹⁹.

There are limits to what the ombudsman can do. In multiple-occupancy buildings insurance, policies may involve insurers, brokers, property managers and others whose firms may not be regulated by the FCA, meaning the ombudsman cannot investigate the part they played²¹. That is a reminder to check who you are actually dealing with.

To check whether a firm is covered, the FCA register can be searched using the provider's firm reference number; if the status shows "authorised", the FSCS may compensate if the firm fails¹⁸. The FSCS protection checker also confirms that protection applies at firm level and may be shared across brands under the same authorisation²⁰.

Where to get free help

If you are unsure which route to take, or you want to check a firm before you use it, several free and impartial services can help.

• MoneyHelper explains when to use an insurance broker and how the two routes differ¹.
• BIBA's Find Insurance service lets you search for a regulated, authorised insurance broker, and you can call it on 0370 950 1790¹.
• The Financial Ombudsman Service handles complaints about insurance firms and brokers, and is free to consumers².
• The FSCS protection checker tells you whether a firm is covered and at what level²⁰.

If you are struggling with debt and insurance costs are part of the problem, the Debt Advice Foundation and other free debt advice charities can help. Comparison websites generally offer better deals than going to suppliers direct, according to the Debt Advice Foundation, but that is a general observation about shopping around rather than a reason to skip advice where your needs are complex²².