When it comes to insurance, there are two ways you can go: either you can buy an insurance product directly from an insurance company, or you can buy it through an insurance broker.
Here are the main differences between the two:
1. Advice
When you buy insurance through a broker, you’ll gain access to help and advice about choosing the policy that’s right for your needs. Brokers can point out potential risks you may face and recommend you cover for these, which is something you don’t always get when buying insurance directly from an insurance company.
In contrast, buying insurance directly from an insurance company doesn’t offer you as much personalized service, but if you already know what you want then this may be the way to go.
Which option you choose will depend on how much you know about insurance. If you have enough experience and knowledge, going directly through an insurance company can work well for you. However, if you’re just starting out and know nothing about insurance, a broker may be the better option.
2. Communication
If you need to query your insurance policy or get help should something go wrong, most insurance companies offer a call centre that you can contact. While this is convenient, you won’t be assigned the same consultant every time you phone, which can mean that you’ll need to explain your specific circumstances each time.
In contrast, an insurance broker will know your personal circumstances, and so will be able to give you the personalized help you need as soon as possible. Most brokers will also make themselves available whenever you have questions, need help submitting a claim or even if you just want to chat about a particular issue.
Ultimately it depends on how much support you need for your insurance requirements. Buying insurance directly through an insurance company is perfectly adequate for most people, but if you want more personalized service and one-on-one communication then using a broker may suit you better.
3. Help with different insurance types
As you journey through life, your insurance needs will change. Buying a house, getting married and having children are just some of the events that could affect the type of insurance you need.
Going directly through an insurance company means that as your needs change, you’ll need to contact the insurance company yourself to apply for new products as they become necessary.
If you use an insurance broker, you benefit from the context of a long-term relationship. Brokers can also help you assess your insurance needs annually, and will suggest that you alter your coverage as your circumstances change.
4. Convenience
Buying insurance directly from an insurance company is usually a single transaction, which means it’s fast and extremely convenient. If you use a broker, the process may take a bit more time, since you’re not buying it directly.
5. Type of insurance
The type of insurance you’re looking for should determine which is the most suitable option for you.
If you’re looking for specialist insurance such as tax, art, or antique insurance, then using a broker would be a better option. Specialist insurance brokers have extensive experience and a hands-on understanding of different industries. This means they know how best to help minimize risk.
On the other hand, if you’re buying more general insurance such as car insurance or life insurance, going directly through an insurance company can be quick and cost-effective.
Hollard lets you buy insurance such as household, car, life, and funeral insurance directly, or via an insurance broker. Start by getting insurance quotes directly from them, or find an insurance broker today to see how they can help you.
