Should I use an insurance broker or go direct?

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Making sure you are prepared for unforseen events that can have an impact on your ability to generate an income, or care for yourself and your family, makes good sense. With a wide range of insurance policies to choose from, it’s sometimes difficult to know what insurance company will offer the best coverage, and tailor a solution that’s going to meet your needs both personally and financially, now and in the future.

What you need to know about buying insurance online, directly or through an insurance broker

Making sure you are prepared for unforseen events that can have an impact on your ability to generate an income, or care for yourself and your family, makes good sense. With a wide range of insurance policies to choose from, it’s sometimes difficult to know what insurance company will offer the best coverage, and tailor a solution that’s going to meet your needs both personally and financially, now and in the future.

Buying insurance online or direct

If you are new to insurance, and are not quite sure what insurance company can provide the best cover, then it’s good to know the benefits and disadvantages of going direct, doing it yourself online, or using an insurance broker to assist you.

Purchasing insurance online has some pitfalls, especially if you lack the expertise to understand the details of what different insurance policies cover. For example, it can be confusing knowing when and under what circumstances you can make a claim, or even what the best policy is for you or your business. You may have a family and are considering a life insurance policy to look after their needs should the unexpected happen, or a business that requires future risk protection. It can also be time consuming sourcing and contacting multiple providers online to find out what they offer. And of course there is the unknown of which insurance company to choose, from the many options available.

Going directly to an insurance company also has its limitations in so much as you are limited to purchasing the policies they sell, meaning you have fewer options to consider. With both online and direct insurance purchasing, the ability to negotiate the best deal, understand what the right policy is for you, and lodging any claims, all need to be dealt with by you.

Buying insurance through an insurance broker

Using an insurance broker offers some distinct advantages, and in some circumstances at no extra cost compared to going directly to an insurance company. As experts in delivering tailored insurance solutions, they can add significant value by doing all the groundwork on your behalf, saving you time and the hassle of trying to compare prices and select a trusted provider.

As an insurance broker works with a wide range of insurance companies, they can provide greater insurance options and advice tailored to your specific needs. They have the expertise and knowledge of the insurance market to be able to provide you with the right advice, and answer all your questions so you can make an informed decision on what policy is best for you. They partner with you for the duration of your policy lifecycle and can provide you with up to date information on any compliance changes including renewal times, and make suggestions for additional cover to protect you should your circumstances change or as alternative products become available in the insurance market.

Engaging a broker also means that in the event that something unexpected happens, and you need to make a claim on your policy, they will handle the claims process on your behalf. This is hugely beneficial when you are under stress and require assistance. A broker can guide you through the process with expert understanding of both your policy and associated insurance compliance requirements. In essence, a broker does all the hard work to ensure you receive the best advice, find the right insurance company to engage with, and negotiate a competitive price on your behalf for any policy you take out.

To find out more about how an insurance broker can help your business, speak to an NZbrokers member today.