Reasons to use an insurance broker when looking for insurance

There has been a kind of growth in self-determination over recent years and it has been nurtured by the omnipresence of the Internet and the ability of consumers to go direct rather than use experts to help them buy services. Insurance is no different, in fact it could be seen to have been in the vein of cutting out the traditional brokerage or agent from the process. To put it in a nutshell; some people believe it is better to 'go it alone' than to use an insurance broker, but are they right?

Turn the clock back to before Amazon and EBay (1994/5) and the world of finding insurance carriers was very different - not that the two sites mentioned were comparison sites. The 'traditional' route if you wanted to get yourself a, say, auto policy was to go thru your local broker who was revered as an expert in the field for selling insurance and handling claims. They had local premises with a front office staffed by friendly people who simply wanted to help, or are my eyeglasses simply to rose-tinted for words. Yet the role of the broker was clearly defined in the continuum of insurance, they had access to the leading insurance carriers, had a wealth of knowledge about the differing types of cover and could even help customers through the difficult choice of choosing a policy that was right for them - so why do we view them so differently today?

Whilst the environment has changed considerably and, particularly in the British Isles, comparison sites have developed personality - just look at the Meer Kat's catch phrase 'Simples!' and the way in which some opera singer of dubious quality urges the Brits to 'Go Compare' to see that this is big business writ big.

So, why chose to ignore the leviathan that is the comparison site in favor of the web-based options? The Bureau of Labor Statistics suggests that there are close on 435000 insurance agents in the USA and that figure is forecast to grow thru to 2018 to almost half a million and the research company 'IBISWorld' suggested that there were around 900000 people employed in 350000 business within the brokerage industry. Therefore it shouldn't be too difficult to find one close by you.

If you can find one, why should you consider using them? First off they are human beings who (to paraphrase King Louis) 'walk like you, talk like you..', they really ought to be able to understand what you want - because they will ask you questions that matter.

Next up, they have access to all the resources that you do but are able to interpret them so much better - they spend all day, every day looking at what's on offer.

Their offerings are not based on the ubiquitous questionnaire that pervades the web alternatives - they have probably done the same for countless thousands of other motorists like you across the years and that experience is invaluable.

If its your first time insurance then their role is to guide you through the many choices available to you, to try and help you find the right policy and cover to suit your circumstances and pocket book. A comparison site will only ask questions, filter some possible solutions based on what you have told them and what the carriers say is available and leave the choice to you. They can't recommend based on experience.

If you have doubts then you can call your broker to discuss them - that option isn't, normally, available on a comparison site, but a small word of warning; not all brokers are altruistic, they have favored carriers that offer them great commissions for persuading you to 'Walk this way'. So, whilst you might think you are getting objective advice they might simply want to place your business with the highest commission carrier - not always but bear it in mind.

If you are renewing your cover you may have been with the same carrier and broker for a good while - they want to keep your business and if you are not happy with the renewal quote then tell them and they should be able to look for something that suits and come back with some recommendations based on knowledge not facts.

For a moment let us look at the options for finding insurance cover: you may know of a brand thru recommendation, advertising or because you have used them previously, so you go direct. Its relatively easy - just one phone call or visit to their web-site and 'Hey presto' you got covered. But there was no choice, you took what was on offer and whilst you get the benefit of no claims discounts that's about it.

Turn to the comparison site and plug in your details - the site will do what it says on the box and compare a number (often hundreds) of carriers' product that fulfill your criteria and list them in descending order of relevance to you - but which one to choose is up to you. You will be choosing on objective criteria, data not information. But it's as easy as pie, quick and painless not having to talk to that pesky call center. And it's cheaper too! Or is it? Studies here and in Europe have shown that the cost of buying via a comparison site versus direct or even thru a broker is no different.

Off then to the brokerage, it's all about the human interface combined with experience. It is true that many brokers have an online service and that once you have made contact that they demonstrate proactive approaches to getting you the right product at the right price for you and if there is a problem or you want to change something - they are able to do so fairly quickly.

If time is of the essence to you rather than the personal approach then go via the web, but if you want to talk to a person who understands your issues, whether it's by phone or face to face, choose a broker every time.