If you’re planning to buy insurance, you have two options— hiring an insurance broker and buying directly from the insurance provider. Although there’s nothing wrong with whether you prefer the other one, you should still get to know the difference between the two.
For some aspiring policy owners, directly buying from the insurance provider seems the best option to avoid an addition to the whole process of getting insurance. On the other hand, those who are familiar with the process tend to believe that it’s better to hire an insurance broker to help them make informed decisions.
In this article, we’ll discuss why hiring an insurance broker is a better choice than direct buying.
1. Expert Advice
Before anything else, you should understand what an insurance broker can do to help you with getting insurance. The first thing you should know is that insurance brokers work with various insurance providers, and aren’t tied up with just one. With this, you can ensure that the information from them doesn’t include any bias, and is solely for your sake.
In addition, insurance brokers have enough training, experience, and knowledge about everything you need to know about insurance. For instance, if you’re having trouble reading the fine print or don’t even know it exists, an insurance broker can and will be happy to discuss it with you.
2. Access to a Wide Range of Insurance Options
As mentioned, insurance brokers work with various insurance providers, which can help you get to know more options. It’s not just about the options for the insurance providers, but also for the insurance policy and coverage. The broader the network and insurance broker, the higher the chance of getting the insurance policy that fits your needs and preferences.
For instance, if you’re looking for business insurance, an insurance broker can offer you a policy that covers all your needs, not the “one-size-fits-all”. Additionally, it’s guaranteed that you’re getting your ideal policy.
3. Save Time and Effort
Unless you have a lot of time on your hands, shopping for insurance on your own can be a daunting task. For starters, you might not be aware of all the possible types of insurance coverages and policies available in the market. In addition, finding the right insurance providers can also take a while since you need to read online reviews and recommendations. Lastly, you won’t know how much premium you need unless you’ve done a risk analysis.
Meanwhile, once you hire an insurance broker, they already know everything about insurance, and they can directly explain what you need to know based on the type of insurance you want to avail yourself of.
4. Customised Service and Advocacy
When you hire an insurance broker, the first thing they do is understand your needs. Even if you have already informed them of the specific type of insurance you want to avail yourself of, they will study your case thoroughly before they start recommending. This allows them to curate the ideal options, answer your questions, and guide you through the entire process.
As you know, every policyholder’s case varies, so the personalised service that insurance brokers provide is one of the great benefits you can get. On the other hand, when you purchase insurance directly from the company, they can still assist you with the process, but their offers are mostly generalised.
5. Save Money
Although hiring an insurance broker may immediately seem like you need to spend more, it’s not always the case. Oftentimes, insurance brokers can help you save more money. Since they know enough about the insurance industry, they know the availability of bundle policies, and they can get the best deals and discounts.
In addition, if there is current news and updates about the insurance company and your current insurance policy, they can inform you about it right away. Meanwhile, if you’re buying directly from the insurance company, the updates are usually for all policyholders. Additionally, you might not be aware that you no longer need some coverage, and continuously to pay for them.
6. Long-Term Relationship and Support
A reliable insurance broker doesn’t just provide services in terms of getting insurance. They’re also there when you need to review and update your policy and file for claims. Additionally, whenever you have questions, you can just contact them, and they can answer and recommend the right thing to do.
When Should You Consider Buying Direct?
The best time to consider buying insurance directly from the provider is when you have specific insurance needs. For instance, if you’ve already done some research, and you’re confident about what you want, then availing insurance from the provider makes sense.
Final Thoughts
Getting insurance is one of the best investments you can make. Although there’s the need to choose between hiring an insurance broker and buying directly from the insurance company, you can base your decisions on various factors, including your needs and preferences.
Let us know which one you choose and why by leaving a comment below!