What an Ontario insurance broker does
A broker gathers your details, compares quotes from insurers they work with, recommends coverage, arranges the policy, and helps at renewal and claim time.
Brokers have contracts with a set of insurers. That list varies by brokerage, so two brokers may not have access to the same companies. Some insurers sell only directly to consumers and are not available through brokers at all.
Once you choose a policy, the insurer — not the broker — issues it and pays claims. Your broker is your point of contact and advocate.
How brokers are regulated in Ontario
The Registered Insurance Brokers of Ontario (RIBO) licenses and regulates property and casualty brokers. RIBO sets education requirements, a code of conduct, rules on fee disclosure and conflicts of interest, and handles complaints.
The Financial Services Regulatory Authority of Ontario (FSRA) regulates insurers and licenses life and health insurance agents. If you have an unresolved complaint, you can go to your broker, then RIBO, or for insurer issues the insurer's ombudsperson and the General Insurance OmbudService (GIO).
How Ontario brokers are paid
Most brokers earn a commission from the insurer that is included in your premium — you do not pay it separately. Some brokers also charge a fee for certain services. RIBO requires brokers to disclose fees in writing, and you can ask about any compensation that might influence a recommendation.
Independent broker, direct insurer or captive agent: what is the difference?
An independent broker can compare several insurers for you. A direct insurer sells only its own policies. A captive (exclusive) agent represents one company.
In Ontario you can buy home and auto insurance three main ways. None is automatically better — the right choice depends on whether you want one company's offer or a comparison.
- Independent broker — licensed by RIBO, can place you with several insurers they have contracts with, and works on your behalf when shopping.
- Direct insurer — you deal with the insurance company itself online or by phone. Simple, but you only see that company's price.
- Captive or exclusive agent — represents one insurer (or one group). Can be knowledgeable, but cannot compare outside that company.
How to check that a broker is licensed in Ontario
Search the broker's name on the Registered Insurance Brokers of Ontario (RIBO) public registry at ribo.com before sharing personal details.
Property and casualty insurance brokers in Ontario — those who sell home, auto and business insurance — must be licensed by RIBO. Life insurance agents are licensed separately by the Financial Services Regulatory Authority of Ontario (FSRA).
The RIBO registry shows whether the person and the brokerage are licensed and in good standing. It takes about a minute and is free.
Coverage basics a broker will review with you
Every Ontario auto policy must include mandatory coverage; the rest is your choice:
- Third-party liability — minimum $200,000; many people choose $1 or $2 million
- Statutory Accident Benefits, Direct Compensation – Property Damage and uninsured automobile coverage
- Optional collision, comprehensive and endorsements such as OPCF 20, 27 and 43
- Home: dwelling, contents, liability, and optional sewer backup and overland water
- Business: commercial general liability, property, commercial auto and professional liability
What to have ready before you call a broker
Having these details on hand makes your quote faster and more accurate:
- Driver's licence number and date first licensed for each driver
- Vehicle year, make, model and VIN (on your ownership or insurance slip)
- Your current policy and renewal date
- Any claims, accidents, tickets or insurance cancellations in the past 6–10 years
- For home: year built, square footage, and the age of the roof, wiring, plumbing and heating
- For business: what you do, annual revenue, number of employees and any vehicles used for work
Questions worth asking any broker
A good broker will be happy to answer these clearly:
- How many insurers can you quote for someone with my profile?
- Do you charge a broker fee on top of the premium? Is it refundable?
- Which coverage limits and deductibles are you recommending, and why?
- What is not covered — for example sewer backup, overland water or a rental car after a claim?
- Who do I call if I need to make a claim, and will you help me through it?
- How do you handle my renewal — will you re-shop it if the price rises?
How xinsurance.ca can help
If you would rather not call around, you can share your details once or call (855) 554-4848. We connect you with an independent, RIBO-licensed Ontario broker who can compare options available for your situation. It is free for you, there is no obligation, and you are always welcome to check the broker on the RIBO registry first.
xinsurance.ca is an independent marketplace. We are not an insurer or a licensed brokerage and are not registered with FSRA. We connect consumers with independent, RIBO-licensed Ontario brokers, who give advice and arrange any policy.