The biggest difference between a Car Insurance broker and a Car Insurance Insurer is that the broker is not underwriting the policy.
The insurer is the one who is actually underwriting (taking the risk) your policy. Therefore, if you have to make a claim on your Car Insurance policy then it will be the insurer that pays out and not the broker.
A Car Insurance broker will generally offer products from multiple Car Insurance insurers. The broker will normally offer the customer a policy from the insurer who has come up with the best price on the broker’s system – though this is not always the case.
Insurers will give out their rates to brokers so that the the broker can sell the insurer’s product. The Car Insurance broker will take a commission on every policy they sell and send the money that the customer has paid for their Car Insurance policy back to the insurer.
Some insurers sell direct to the customer and may pass on any savings they make by not having to pay broker commission. However, they will only be offering you their own rates whereas a broker will be able to source multiple insurance company rates.
There are advantages and disadvantages of both which is why it is worth shopping around for your Car Insurance.