How do car insurance brokers get paid?

Car insurance brokers earn a commission from the insurer, typically a percentage of the annual premium. Industry estimates put first-year commissions at roughly 5% to 15% of the premium on new auto policies, dropping to 2% to 5% on renewals. Brokers represent the customer rather than the insurer, and state rules govern when they may also charge service fees for advice, policy changes, or claims help.