Why Use an Insurance Broker?

25 Jul 2018

Why Use an Insurance Broker?

Let’s face facts, insurance isn’t sexy and often doesn’t get the attention it should, yet this purchase is valuable to your protection. Today I’m posing the question Why use an Insurance Broker?

Imagine, it’s that time of year again, the annual insurance renewal and as a prudent business owner with an eye on overheads and profit what do you do, go online for a quote, that's the best approach right? With media bombardment and direct insurers promising to beat any quote, why wouldn't this be the best way?

Answer me this, with the average house price in the U.K. at £224,144 if you were buying a property and signing a contract to that value, surely you would take professional advice? Of course, you would.

Well, that's what you do every year with insurance being an annual renewable contract. In the event of a claim the policy would pay to the full value and that's a big gamble to take when the buying choice has often been based on the cheapest price. And that’s just a household policy, as a business owner, the covers you buy are infinitely more complicated. What could possibly go wrong?

Here are 3 Insider Top Tips when it comes to buying insurance:

  • Professional advice. Online providers do not provide advice. The onus is 100% on you to ensure that the information you have provided is accurate and correct. If it isn’t and you are unfortunate enough to make a claim, you could find this being turned down or your settlement reduced – regardless of whether the error was accidental or on purpose.
  • Value for money. There is a common strategy among online providers to price their quotes to lose money for the first two years; after this time, the prices start going up. Why? Because most people are too busy to search around every year for new insurance quotations and simply renew having previously benchmarked the price. A good broker will constantly review the price you pay and the value you get.
  • Claims. The 1 true test of any insurance policy. This is the primary reason most of us purchase insurance – in the event of a loss, our insurers will help put us back in the position we were immediately before the claim. If you buy online, then you are on your own dealing direct with an insurer at a time when you need a specialist on your side.

Buying from a broker is the best value you can get, with wide policy choice and lots of insurers looking to win your business, a good broker will tailor cover to suit your cover requirements and budget and be there to help you in the event of a claim.