Many generally think they benefit when they buy insurance direct but is this true? Many may even feel that the ‘middle man’ is just an unnecessary third party member and with that comes additional costs and more room for error.

However, when you look at the most important factors, you may be surprised to find just how beneficial a broker can be…

COST

Contrary to popular belief, broker pricing is actually better than direct insurance pricing. Reason being, insurers provide different rates to brokers, in order than premiums are lower. Why would insurers provide special broker pricing? To put it simply, because the risk is lower for the insurer. Brokers are professionally trained to select the correct policy for their customers and not to under insure, therefore avoiding many unnecessary claims while maintaining the correct income.

EASE

With the evolution of comparison sites, many believe buying policies directly is an easier option for them. However, with most brokers offering an online service and proving to be far more pro-active after receiving the initial quote request from the consumer, brokers shine through. Also, most direct services fail to deliver when faced with queries or changes that are not as common, particularly later in the policy life cycle.

PEACE OF MIND

Brokers are much more efficient at cross checking policies and very good at educating customers about the types of cover available as well as answering queries. When purchasing insurance directly, there is too much focus on the customer to do the work themselves therefore direct service cannot compete with the level of service provided by brokers. In particular, when it comes to a customer having non-standard requirements or being classed as ‘high risk’, direct services often fall short.