Personal Liability Insurance: What Happens When Someone Gets Hurt on Your Property

Have you seen online or heard the misinfoirmation that insurance brokers pocket 80% of your premium?

And are you now wondering whether working with a broker is just throwing money away compared to going straight to an insurance company?

Here’s the truth: that 80% number is wildly misleading. In this article, you’ll learn what brokers  actually  get paid, why that compensation exists, and how brokers often  save  you money—especially at renewal time.

A few social media personalities have spread the idea that insurance brokers take up to 80% of your premium. But what they’re not telling you is this:

That number typically refers to  certain one-time life insurance commissions , not to your  home, auto, or business insurance premiums —and even then, it doesn’t reflect actual earnings after service costs, taxes, and overhead.

Let’s clear it up: brokers typically earn  between 11% and 15%  of your premium. This isn’t just for selling you a policy—it covers:

• Year-round customer support
• Claims assistance
• Annual policy reviews and remarketing
• Access to multiple insurance carriers
• Local, personalized service

And yes, that commission keeps staff employed in your community. We’re not faceless call centers—we’re your neighbors.

📊 A quick breakdown of your $1,000 premium:

• Insurance company: ~$880
• Broker compensation: ~$120

I started as an agent in 1980—selling for one company only. If rates went up or coverage changed, you were stuck.

That’s why I became a broker. Brokers aren’t tied to one company. We shop  10 or more  carriers to find the best deal, especially at renewal time when your premium might unexpectedly jump.

Agents = 1 option.
Brokers = Multiple.

Which one gives you more leverage?

Not always. If you already get discounts for bundling through a direct insurer, or if you’re loyal to one company no matter the rate, working directly may suit you just fine.

But if you want flexibility, price comparisons, or someone to handle the messy parts of insurance for you—brokers are built for that.

Now that you know brokers don’t take 80%—and in fact, often  help you avoid  overpaying—what’s next?

If you’re tired of rate hikes, limited options, and waiting on hold when things go wrong, we can help.

Let us compare your policy across multiple carriers.  You might be surprised what you’re missing.

The team at Vargas & Vargas Insurance can be reached at 617-298-0655 to help you get clarity, control, and confidence in your coverage—year-round.

Curious about how switching from an agent to a broker actually works?
Watch: Is Your Insurance Agent Or Broker Working For You?