The insurance broker is the most popular alternative to going directly to the insurance company when insuring your Mercedes car. They can help find you the best deals from a wide range of insurers and sometimes research on your behalf to find out where they can get the best deal. It is not the best way to buy insurance, but it can work for certain people.
What is an Insurance Broker
An insurance broker is someone who sells and sometimes administers Insurance. The main difference from an insurance agent is that an insurance broker uses their expertise to find the best deal for you but will do some of your research if you ask. Although they can offer personalized services, their main objective is to ensure that you get the best deal on your insurance. An insurance broker will look at your lifestyle and circumstances and advise you on the best cover to suit your circumstances.
Advantages of Using an Insurance Broker
1. They have Access to Information that will Help you Find the Best Deal
If you have a pre-existing condition that would prevent you from getting Insurance direct, if you are looking for cover as a young driver (19 – 25), or if you are self-employed and need cover for your business and the contents of your house, all of these things can be difficult to get directions. Insurance brokers who represent a wide range of insurers can find the best deals for these customers. Therefore, they can save their customers time and money by saving them the hassle of dealing with multiple insurers.
2. They can Buy Insurance for you – if you ask them to
Insurance brokers can give you information about which policies could be available for you, although this will depend on your circumstances and the type of cover sold. An insurance broker can also determine whether a policy not available to direct customers is available as part of some other policy, such as a soft life scheme. If a policy is not available directly, an insurance broker can buy the policy for their customer.
3. An Insurance Broker can Negotiate the Best Deal for you
A good insurance broker will use their expert knowledge and contacts to find out where they can get the best deal and save their customers money. They can also cut down the paperwork and reduce the burden on their customer.
4. They can Provide Advice on your Policy, in addition to being an Intermediary
Insurance brokers are not perfect, and some insurance agents use this as leverage to increase their commission. It does not mean that you must be a client of an agent to get good advice, as every reputable broker I have worked with has also been willing to provide me with practical, honest advice. Ask the broker who policies they sell and how, for example, whether the policy includes personal accident insurance or road tax.
What is Going Direct
Going direct is when you deal directly with the insurer. It is the traditional way to buy Insurance, and it will depend on your circumstances which way is best. If you are happy to deal with an insurer directly and fill in your information, this will be a better option than an intermediary. You will not have to pay a commission, and if you do find a broker, they may be able to discount the cost of your policy or offer some other added value, such as free breakdown cover or European cover.
Advantages of Going Direct
1. You can Fill in the Entire Application Form Yourself
You can fill in or have a broker fill in your application form. You will need to provide full details of your circumstances, so the broker has a basic idea about the type of cover that would be appropriate for you. It means that you do not have to pay extra for one-off extras. For example, some policies include ‘free’ breakdown cover and European cover, and you would have to pay for these if you went direct as part of your premium.
2. You do not have to pay a Commission
If you were to use an insurance broker, they would take a certain percentage of the premium from the insurer on top of their fee. As you are dealing directly with the insurer, this commission is not due, and therefore, your premium will be cheaper. You will pay for cover, but you will also keep any additional benefits included in some policies, such as breakdown cover and European cover.
3. You can Deal with an Insurer that your Broker Does Not Represent
I have worked with several insurance brokers who represented several insurers, and it was challenging to get all the information from them about all their policies. Going direct means you will have access to a broader choice of companies and policies, and if you do find a policy that your broker does not represent, it may be cheaper if you buy it directly. Your insurance broker may be willing to compare the cost for you.
There is no wrong way to buy Insurance, and if you would prefer to go direct, this may work for you. If you are happy to use an intermediary, then go ahead! The individual ensuring your house will be a broker, and there are no laws that require them to be a broker. In most cases, insurance companies will not check with the intermediary to see if they can offer better deals. In some cases, the broker may recommend a more expensive policy than one available directly.