Sometimes, when you’re browsing for insurance products, if it’s for your home to your pet, it can be a long tedious task, no one really likes to shop around for insurance let alone constantly filling out your details to obtain a quote, this is why many people obtain insurance using a broker.
Not only can a broker make the process easier, you provide them with your details once and they do the leg work and search for the best possible deal they can obtain for you and you have no obligation to actually take their insurance recommendation either, so it’s a win win situation.
Here are 10 reasons why you should consider using an insurance broker to find the best policy.
Experience
They have the experience – Insurance brokers are professionals who understand the market and how to find the best deals. In most cases, they’ve been doing it for years, so they know where to look and what to look for.
They work for you – Not the insurer
An insurance broker’s job is to find the right policy for you from the insurers they have access to. They don’t work for the insurer, so their loyalty lies with you.
They’ll save you time
Shopping around for insurance can be a time-consuming process. An insurance broker will do the hard work for you and provide you with a selection of quotes from different insurers, so you can compare and find the right policy for you. You’re not obliged to take their recommendation
Just because an insurance broker finds you a great deal on your car insurance, it doesn’t mean you have to take it – you’re free to choose any insurer you like.
They have access to a range of insurers
An insurance broker isn’t tied to any one insurer, so they can find you a policy from a range of different insurers, some of which you may not have access to if you went direct.
They can help you claim
If you need to make a claim, your insurance broker will be there to help and guide you through the process, making it as stress-free as possible.
They’ll review your insurance regularly
Your circumstances change over time, so it’s important to review your insurance cover on a regular basis to make sure it still meets your needs. Your insurance broker will do this for you and make sure you’re always getting the best deal.
You only have to deal with one person
When you use an insurance broker, you only have to deal with one person – your broker. This can be a lot easier and less stressful than dealing with multiple insurers.
They’re regulated
All insurance brokers in the USA are regulated by the National Association of Insurance Commissioners (NAIC), so you can be sure they’re qualified and professional. You can also do an online check to make sure that your broker is who they say they are before committing.
Knowledge
Because brokers deal with insurers on a daily basis, they tend to have better relationships with the insurance reps, knowing this, the broker will also know which insurer to approach depending on your situation and needs. If you have specific requirements for your policy, having a broker will allow you to explain to them your situation and they will know which insurers will cover your circumstances, thus avoiding insurance rejections.
Better Deals
Let’s not forget, brokers normally are paid a commission by the insurer when they offload a policy to you, some brokers also charge a fee to their clients as well, thus receiving a kick-back from both directions.
Knowing the above, they should earn their fee by producing very good deals, most times, brokers can obtain better insurance premiums prices which they have already pre-arranged with insurers as an incentive to bring my customers into an insurer, so always ask your broker if insurance providers have any discounted rates or deals for multiple vehicles, or home and vehicle bundles.
What are the disadvantages of using an insurance broker?
There are a few disadvantages to using an insurance broker that you should be aware of before you decide to use one. These include:
You may not be able to get the same level of cover as you would if you went direct to the insurer – This is because some insurers only offer certain products and levels of cover through brokers, so you may not have as much choice.
You may have to pay a fee – Some insurance brokers charge a fee for their services, so you’ll need to factor this into your budget as well as the cost of the insurance policy.
The process can take longer – Because you’re dealing with one person (the broker) instead of multiple insurers, the process of finding and comparing quotes and policies may take time and if you should need to make a claim, you would deal with your broker and your broker would deal with insurers instead of dealing directly with your insurers..
You may not be able to get the same level of customer service – When you deal directly with an insurer, you can usually go straight to their customer service team if you have any problems. When you use a broker, you may have to go through them to get in touch with the insurer, which can add time and frustration to the process.
Now that you know some of the pros and cons of using an insurance broker, you can make a decision about whether or not they’re right for you. If you do decide to use a broker, be sure to shop around and compare quotes from multiple brokers to get the best deal, as we mentioned you don’t need to proceed with their quotes, you are free to speak with more than one broker and let them all go out and retrieve your quotes, if one suits your needs and the price is right then go ahead, if not, then simply walk away and find another broker.
As you can see, there are some advantages and disadvantages to using an insurance broker. Ultimately, the decision of whether or not to use a broker is up to you and should be based on your needs and circumstances.
Most times, the reasons for using a broker is if you have special or “uninsurable” situations where high-street insurers simply will not insure you for whatever your reason may be, this is a good reason to approach a broker.
Final Thoughts
We hope this article has helped you to understand a bit more about insurance brokers and what they can do for you. If you’re still not sure whether or not using a broker is right for you, we recommend speaking to a few different brokers to get their opinion on your situation.
And remember, the best way to find the right broker for you is to shop around and compare quotes from multiple brokers. This will help you to find the best deal and the right broker for your needs, also remember, its always a good idea to be honest with your broker as they will find the best fit insurer for your needs.