Why should you use an insurance broker?

DATE: 29/03/2019

Using an independent broker

Outside of the insurance industry, why you should use a broker can be a confusing idea. People have many misconceptions about what can be achieved and whether it will cost them more money. When purchasing any form of insurance, there are a range of routes you can go down such an agent who represents a specific provider, a comparison website or an independent broker. In many cases, an independent broker is a better option for several reasons.

Firstly, the insurance broker works for you and not the insurance company. Generally, there is no tie to one specific provider, cover or product, especially for personal lines products such as motor and home. A range of deals and offerings will be looked through to find the best one. When it comes to more complex products such as commercial lines however, brokers may only have one or two avenues and will not be able to complete cross market analysis. The broker will pay attention to detail and get to know your individual needs, therefore being able to recommend the most suitable coverage. A broker has the knowledge to be able to advise and investigate the situation on a more personal level, depending on their Financial Conduct Authority (FCA) sales status.

Brokers must be FCA registered

As a professional with experience, all brokers must be registered with FCA, which provides the consumers with confidence that they are being protected. Every broker has an individual FCA registration number, meaning their status on the FCA register can be looked up, giving a client that additional peace of mind. Brokers can give advice and guide through situations that involve the claims process and dealing with losses. Using a broker is a form of reassurance, and in event of dishonest conduct, you are protected as every broker must be bonded. By the Chartered Insurance Institute Code of Ethics, your privacy should be maintained, and all client discussions are confidential.

It is often wrongly assumed that getting expert advice will cost you the earth. Just like comparison websites, brokers get paid commission by the insurance provider for selling their products. The majority of brokers will charge their clients an administration fee when they purchase a policy from them. All the broker fees fees will be confirmed within the broker’s own terms of business agreement and should also be confirmed during the quotation process to the client, so they are aware prior to purchase.

Peace of mind

A final benefit of using an insurance broker is that many will assist with claims. Brokers will direct their clients to their insurers who will be deal with the claims accordingly.  Brokers may speak to the insurers on the client’s behalf, however, the claim will be between client and insurer. This helps with peace of mind as often, making a claim can be an intimidating and confusing process.

To get in touch with Commercial Express, visit https://www.commercialexpress.co.uk/contact-us