Reasons to Hire an Insurance Broker

By Tokkie Ferreira       Last updated Nov. 23, 2017


Buying insurance has never been easier than it is today. You can easily search the internet for offers from recognized insurers, contact them for further details, and buy directly from them.

It is now easier to connect with insurance agents representing specific companies and buying from them.


Why Should You Consider an
Insurance Broker

An insurance broker is the contact between the insurance company and buyers. Usually, consumers see brokers as an unnecessary third party, interested in making a profit without adding any tangible value.

It is generally perceived that the insurance broker exists only to increase the cost of insurance, and an opportunity to cut them off should be embraced, which is far from the truth.

With the real interest of consumers in mind, we are going to look at the top reasons why hiring an insurance broker can be highly beneficial to you.


Better Pricing

better-insurance-policies

Conventional wisdom will tell you that using a broker will increase the cost of insurance compared to when you buy directly from insurance companies. This is highly inaccurate.

Brokers are experienced and possess market intelligence. They can help you to buy the best coverage at the best rate. They understand insurance better and will ensure that you are not under-insured or over-paying. Brokers also have special agreements with Insurers, which means they sometimes get special premium/discounts.


Trusted Councellors

When you have a good relationship with your broker, they become an integral part of your team.

The fact that they do not represent specific companies means that they can search for better offerings that may suit your specific need.


Ease of Transaction

Most consumers assume that buying insurance directly from the insurance companies is easier than engaging a broker in the process. This cannot be further from the truth.

Dealing with insurance companies on a daily basis gives the brokers an advantage of working relationship with them and this helps them to close deals with accustomed ease.

Also, when you need to be more informed about an offer, brokers are more likely to provide the necessary information and available options.


Accurate Valuation of Assets

accurate-valuation-of-property

One of the major causes of loss to insurance customers is an inaccurate valuation of assets. Assessing the true value of properties and assets to be insured is very crucial if you do not want to pay more for less value.

With the experience they’ve gathered from working with other customers, brokers are generally well informed about the valuation of properties and can help to ensure that whatever you need to insure is accurately valued.


Speed and Efficiency

The speed of direct services of insurance companies when it comes to generating initial quotation figures beats that of insurance brokers, but when it comes to mid-term changes, documentation requests and once-off queries, it is faster to obtain information from insurance brokers than from the direct service option of the insurance companies.

This is because the companies depend mostly on assistants who have very little knowledge about insurance. From the time of making enquiries, through the process of making a sound decision, and the ultimate purchase of insurance coverage, using an insurance broker can be faster than going through an insurance company directly.



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Expert Knowledge

You may think you have made the best decision and you are sure about the insurance cover you want to purchase; you may have a vague idea of the prevailing premium and the most trusted insurers (in your friends’ opinion).

The truth, however, is that you or your friends can never know as much as an insurance broker when it comes to the best offers on the market.

When you approach them with all your queries and sincerely trust them to do their job, they will provide you with a better deal than you would have received if you went directly to insurance companies.


Transparency and Trust

insurance-broker-benefits

Brokers are required to disclose their commission rates and their effect on the premium you pay. This policy is there to check that they don’t inflate your payment to enrich themselves. Broker’s compensation is included in the amount you pay as premium; therefore, they are required to make this information available to you to guide you in making a sound decision.

Brokers are also required to disclose any form of financial link (ownership or financial relationship) with insurance companies to avoid a conflict of interest. You should ask for this information from your broker in order to make an informed decision.


Detailed Coverage

You can be rest assured once you have decided to go with a good insurance broker. He or She will cross-check policies for the details you may not have the time or knowledge to put into serious consideration.

A broker will further educate you on vital details such as exclusions and policy excesses, guiding you to make the right decision. When you deal directly with insurance companies, there are chances that you will obtain the kind of coverage that will leave you at a loss when unfavourable incidents happen.


Assistance When You Need to Make a Claim

You will never know how stressful making an insurance claim is until it is time to do so. When you have a broker on your side, this process is made simpler. There are some documents that may be required when you want to make a claim; a good broker will ensure that you have these documents all prepared.


Security of Your Personal Information

why-hire-insurance-broker

By their code of ethics, insurance brokers are required to keep your personal information confidential.

From all indications, choosing an insurance broker to handle your insurance policy procedures is better than travelling the road alone. They offer professional guidance that will help you to make informed decisions and they are also helpful whenever you need to make claims.

You will also speak to the same broker every time and not need to deal with a call center. Having a broker to back you, will be the best decision you ever make.

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