Why use an insurance broker to obtain your General insurance?
Well an insurance broker is able to save you not only time, but also money. They can take the worry away because you are getting advice from an experienced expert which in a way gives you additional protection. They owe a professional duty to you just like an accountant or lawyer who provides you with professional advice. A qualified Insurance Broker usually will have years of training and experience and is also able to give you true professional advice.
When arranging insurance, many people just do not understand everything that is needed to make sure the right protection is in place. Many will take shortcuts without seeking proper advice. They often not only do not understand the fine print or even skip it because it is simply uninteresting. So they would not even know if they are getting value for money. Then at Claim time they can be quite disappointed when their insurance doesn’t come to the rescue.
Direct Insurers generally will not give personal advice. They are selling one product, their own, so they will at best tell you why it is the best, but they will not tell you when it is not as good as another. An Insurance Broker will.
Then when it is Claim time, you are at the Insurer’s mercy. With an Insurance Broker on your side, they can assist in negotiating and settling any claim as they understand how the Insurance Policy is intended to work.
Despite the Federal Government’s best efforts to protect the consumer better with the Financial Services Reform Act, it has instead driven a clear divide between those providing personal advice and those that do not particularly on home or car insurance. Direct Insurers have improved margins by reducing paperwork that normally comes with Personal Advice. Insurance Brokers simply cannot compete when it is only price driven. Their advice, expertise and assistance is factored into all types of Insurance and this does come at a cost.
The best example of this are the recent flood claims many people sought to make on their Householders Insurance policies only finding out then they did not have this cover. The onus was on the Householder to ask questions of the Call centre staff about what was covered in their policy. Instead they were sent a 40 page Product Disclosure statement and asked to work it out for themselves. An Insurance Broker takes care of this for you.
With business insurance, brokers provide advice and assistance to make sure you are properly protected. Skill and knowledge is needed to advise a client on what their risks are and how they can be protected.
Using a broker doesn’t necessarily cost more. Often it costs less because brokers have knowledge of the insurance market and the ability to negotiate competitive premiums on your behalf. A broker will also explain your policy and any special issues you need to watch out for. Furthermore, a broker will advise you of any additional fees charged for services provided to you.
An insurance broker’s foremost duty is to act in the client’s best interests. An insurance broker works for you. That’s the reason to use an Insurance Broker, but call a good one.
CPR abide by the NIBA Insurance Broker’s code of practice
Call CPR Insurance – experts who will save you!