In Canada you can buy home, auto and most other insurance through an independent broker, who compares several insurers for you, or directly from an insurer online, by phone or through your bank. Neither route charges you a separate fee in most cases; the differences are in choice, advice, speed and help at claim time. This guide compares the two, explains how brokers are paid, and sets out when each tends to work better. It sits in the travel, pet and other insurance hub alongside the other guides that apply across every type of coverage.
Broker vs Direct: Quick Comparison
Factor
Insurance Broker
Buying Direct
Number of insurers
Several companies
1 company only
Price shopping
Broker does it for you
You compare quotes yourself
Cost to you
No direct fee (commission from insurer)
No direct fee
Price
Competitive; may find a lower rate
Sometimes lower
Advice
Personalized, licensed professional
Self-serve or call centre
Claims support
Broker advocates for you
Deal with insurer directly
Speed
Moderate: broker gathers quotes
Fast: online quotes in minutes
Complex coverage
Strong: can bundle from multiple carriers
Limited to one carrier’s products
Availability
Business hours, some evenings
24/7 online
How Brokers Work
Step
What Happens
1
You contact a broker and describe your insurance needs
2
Broker assesses your risk profile and coverage requirements
3
Broker shops your policy across the insurance companies it represents
4
Broker presents the best options with their recommendation
5
You choose a policy; broker handles the paperwork
6
Broker reviews your coverage at renewal and re-shops if needed
7
If you have a claim, broker helps you navigate the process
How Brokers Get Paid
Brokers are paid mainly by commission from the insurance companies they place business with, so you don’t pay a broker a separate fee for a personal home or auto policy. The commission comes out of the premium the insurer charges. Commission rates are set between the insurer and the brokerage and aren’t published as a standard percentage.
You have the right to ask how a broker is paid, which insurance companies it represents, and whether it has any potential conflicts of interest. In Ontario, every broker licensed by the Registered Insurance Brokers of Ontario (RIBO) must give clients a commission disclosure letter that sets this out.
A direct insurer doesn’t pay a broker commission, but it has its own costs of selling policies (advertising, call centres, online quoting), so buying direct is not automatically cheaper.
Direct Insurance Companies in Canada
Company
Type
Where it sells
Sonnet (Definity)
Online direct
Car and home insurance in ON, QC, NB, NS and PE; online home insurance in BC and AB
belairdirect (Intact)
Direct
Car and home insurance; its quote tool lists AB, BC, NB, NS, ON, PE, QC and NL
TD Insurance
Direct / bank
Home and auto insurance; online purchase isn’t available in every province
RBC Insurance
Direct / bank
Home and auto insurance underwritten by Aviva; auto insurance isn’t available in MB, SK or BC
The Personal
Group home and auto
Group rates through an employer, association or other partner group
In the public auto insurance provinces, compulsory basic coverage comes from the public insurer: ICBC in British Columbia, SGI in Saskatchewan (with vehicle registration) and MPI in Manitoba (through Autopac agents). How those schemes work is covered in the car insurance hub.
When to Use a Broker
Situation
Why a Broker Helps
Bundling home + auto + umbrella
Can mix carriers for best price on each
Poor driving record (tickets, accidents)
Knows which insurers specialize in high-risk
New driver / young driver
Can find the most competitive rates for your age
Claims history issues
Knows which companies are more forgiving
Complex property (rental, cottage, condo)
Expert coverage advice
High-value home
Access to insurers that specialize in high-value homes
Ask friends, family, or your real estate agent for referrals
2
Verify the broker is licensed through the provincial licensing body (RIBO in Ontario, the AMF in Quebec)
3
Ask how many insurance companies they represent
4
Ask about their claims advocacy process
5
Compare the broker’s best quote against 2–3 direct quotes
6
Check Google reviews and complaints with the provincial regulator
The Best Approach: Use Both
Step
Action
1
Get quotes from a few direct insurers online
2
Contact a broker and ask them to beat your best direct quote
3
Compare coverage, not just price: deductibles, limits, exclusions
4
Choose the option with the best value for your coverage needs
5
Re-shop periodically, especially after a renewal increase (or have your broker do it)
Re-shopping matters most after a renewal increase; the reasons premiums rise, and which of them switching can fix, are in why did my insurance premium go up.