Choosing brokers over insurance companies

Are insurance brokers valuable? In what way is a broker better than a insurance company?

11:27 30 January 2014

Can an insurance broker provide you with value when handling your policy? Many people may wonder why go to an insurance broker instead of going directly to the company itself. There are several reasons why having a broker can actually benefit you more than if you go to the company directly.

 

Insurance brokers offer two significant advantages over going directly to the insurance company. The first is that they are not going to push a specific product onto because the company needs more sales in that area. They are going to find the policy that best fits your needs. Second, they have specific knowledge versus the general knowledge you will find when you call customer service at a major company. 

 

• Getting the best service – When you go directly to an insurance company, the insurance company is going to sell you the policy they want you to purchase. This does not necessarily mean that the policy is the best option for you or your needs. It is simply the product they want to push. It may be more expensive or less expensive than if you go through a broker but it also may not cover everything you need in either case. A broker is going to provide you with the plan that best fits your needs. 

 

• Specialisation – an insurance company will provide you with general information that is the entire customer service desk are trained to do. This information may not be what you need to make an informed decision or to deal with your problem. A broker, on the contrary, is going to have specific knowledge about the type of policy you could do with, the type of policy you have, and will be able to answer specific questions quickly. 

 

Here are some of the reasons why a broker can be of more benefit to you than direct contact with an insurance company.