How much does it cost to use an insurance broker?

Insurance brokers are typically paid through commissions from insurers, which are calculated as a percentage of the annual premium rather than billed to the consumer separately. Where state law allows, brokers may also charge fees for consultative or advisory services, but those fees must be reasonable and agreed with the client, and several states require a separate written agreement before any non-commission fee can be charged. Because fee rules differ by state, the terms of any charge should be set out in writing before work begins.