Why an Insurance Broker is Better than a Comparison Website
People shop for insurance providers in two main ways. Some visit insurance price comparison websites while others contact insurance brokers. This article discusses why it may be better for you to choose an insurance broker over a comparison website.
Provision of Regulated Advice
Many jurisdictions have institutions that oversee and regulate the activities of insurance brokers. Such regulatory bodies help to ensure that insurance brokers provide advice that is in the best interest of the client. Price comparison websites may not fall under the jurisdiction of such regulatory bodies, so you are at a higher risk of being misled if you make a decision based on their advice. Would you rather take that risk, or hire a broker who is bound to provide the best professional advice?
Identification of Custom Products
Price comparison websites provide information on generic insurance policies. For instance, they will give you the rates charged by different companies that can insure your goods while they are in transit. However, an insurance company that specialises in insuring particular items (such as antiques) may serve you better. An insurance broker may be in a better position to refer you to a company that has experience in designing policies for such special situations.
Explanation of Policy Contents
Many laypeople may not be able to understand the insurance jargon used in insurance policy documents. An insurance broker helps such clients by explaining the contents of the policy. Such explanations can help you to make an informed decision on whether to purchase the policy, or not. Price comparison websites may not offer the same kind of detailed explanation of policy terms that a client needs in order to understand whether a given policy is the best for him or her.
Exploration of All Factors
Price comparison websites emphasise price when generating results for a person who has requested for a comparison of different insurance companies. This emphasis of price can lead some insurance companies into 'stripping' a policy in order to appear very competitive, as a study discovered. This denies the client an opportunity to explore all factors that may affect his or her cover (such as the exclusions to a policy). An insurance broker asks you to explain what your needs are, and then he or she makes recommendations of which policies may meet those needs.
As you can see, it may not be wise for you to think that you will save by not engaging an insurance broker, such as those at Ian Hewitt & Associates. This professional will provide invaluable expertise that will save you money in the long-term.