We are independent insurance brokers licensed to sell insurance by the Registered Insurance Brokers of Ontario (RIBO). Car Insurance Brokers of Canada Inc. (carinsurance.ca) has a Code of Conduct, a Privacy Statement and a Code of Consumer Rights and Responsibilities. All of these are accessible within this website.
Consumers are generally aware of the difference between buying through an insurance broker, who represents several companies, and purchasing from a single company through a captive agent or directly by phone. We are insurance brokers and therefore insurance consumers value choice and professional advice that we can provide. We also believe that consumers get the best deal in terms of coverage and price- and the most satisfactory experience over the long term- when they have an independent insurance broker advising them and advocating their interests.
Our Code of Conduct and the agreements we have with the insurers we represent require us to exercise the utmost diligence, honesty and good faith in performing our duties, in properly and promptly servicing policies, and in our communications and dealings with clients.
We are compensated in two ways: Firstly, we are paid a fixed percentage of the premium (a basic commission) paid by our clients. This varies by the type of business and details are accessible within this website. In a few instances we charge a flat fee for a service. We never charge a fee for a service if we are also receiving a basic commission for the same service. Secondly, many of the insurers we represent have an annual contingent commission program which recognizes brokers for helping them to write profitable business; allowing them to remain well-capitalized to pay claims and to keep premiums competitive. Insurers have the technical understanding and statistical evidence to know the premium that should be charged for certain types of business and they set prices to compete for that business. Contingent commission rewards those brokers who understand the insurer’s market expertise and whose insurance portfolio is made up of the kind of business the insurer seeks to write.
Neither we nor insurers know which policy will have a claim, so the objective is to have sufficient policies without claims to pay the claims of the rest.
Contingent commissions, if any, are paid after the end of a year and it is based mainly on the profitability of our total portfolio of business, often averaged over two or more years. The amount payable also takes into account the amount of business transacted. The total annual contingent commission received by us is rarely more than $1.50 per $100 of premium.