Insurance is an extremely important aspect of our lives – whether it’s for individual or business needs. With an abundance of information available online, it’s not uncommon to feel stressed. Enter an insurance broker and you may have found the perfect person to help you navigate your way through the stressors of insurance.
Even with an insurance broker involved, dealing with insurance can be confusing and quite frankly, overwhelming. However, when you engage a broker, you’ve got someone on your side who is working for you, and not the insurer, so you know you’re getting the best advice possible.
Why use an insurance broker?
First things first – what is an insurance broker? An insurance broker is a specialist in insurance and risk management. They act on behalf of the client and will help to identify your individual and/or business risks to help you decide what to insure and how to manage those risks in other ways.
When you choose to use a broker, you’re choosing knowledge and therefore putting yourself in the best position to find the policy that’s right for you. Navigating the tricky waters of insurance can be devastating to get wrong – especially if you choose a policy you think covers something (like hail damage), but you find out later it doesn’t – so it’s important to put yourself in the best position possible.
Using an insurance broker equips you to understand the risks involved, and they can find the best insurer for your needs. When it comes to choosing a policy, finding the cheapest one isn’t always what’s best. There are many things at play when choosing a policy and many of us tend to avoid reading the fine print or product disclosure statement (PDS) that details what is included. An insurance broker will read the PDS in full to ensure you’re covered for exactly what you need.
Some of the other benefits of using an insurance broker include:
They offer expert advice: Insurance brokers possess a wealth of knowledge and can help you understand everything you’re looking at in a PDS as well as help you understand the insurance lingo you might come across. With the knowledge they have, they may also be able to access policies that aren’t available to most consumers.
They can assess your risk exposure: They will be able to assess your risk, so you’re protected if things go wrong. Insurance brokers can also let you know of any potential risks that might come up. If you’re looking for insurance as a business, they can find policies that are tailored to your specific business needs, as well as foreseeing risks involved.
They can save time and money: Investing in an insurance broker will save you countless hours trawling the net for the best policy, as well as finding you the best deal, so you’ll save on money in the long run. You don’t want to be paying too much on a policy that doesn’t meet all your needs.
They will communicate with the insurer: When you’re trying to find an insurer, the last thing you want is to spend hours on the phone listening to insurers trying to sell you their product. Your broker will do the leg work for you, liaising with each insurer to see what’s on offer. They will ask all the right questions and take care of the technical aspects involved, before coming back to you with the relevant information you need to hear without everything in between.
They can support you at claim time: If there ever comes a point where you need to submit a claim, your insurance broker is with you every step of the way to support lodging a claim, making this process as pain-free as possible. They help you work through the paperwork and take on what they can throughout the process.
They work for you: One of the many benefits of having an insurance broker is they work for you – not the insurer. Because they don’t work for the insurer, they aren’t trying to sell you a specific policy meaning they remain neutral throughout the process and are simply trying to get you the best value for money.
They regularly review: Regardless of whether it’s an individual or business policy, your insurance broker will review this regularly to ensure nothing is changing negatively in your policy and to keep seeking out the best value for your money, as newer and better policies may be emerging.
Your experience is personalised: As a broker is working for you and not the insurer, they are looking for the best policy to suit your needs. With their skill set, insurance brokers can prepare a customised insurance and risk management program for you or your business, where they design policies, negotiate the terms with insurance companies and place the cover with the insurer.
Overall, insurance brokers are team players who are simply trying to keep your best interests in mind.
Should I be using an insurance broker?
Reading through this blog, you may wonder whether you should use an insurance broker, or whether you should have someone review your current policies. While they can be extremely helpful in finding the best available deals, they aren’t compulsory.
Unsure whether you’d benefit from an insurance broker? They can assist you if:
- You need cover for multiple cars and homes
- You would like to fully understand the PDS, as well as the ins and outs of your current insurance policy such as exclusions and limits
- You are looking for insurance for your business
- You are looking for an insurance policy that is tailored to specific or complex needs
- You aren’t happy with your current insurance and are looking to shop around for a better deal, but don’t have the time to do the research yourself
- You want to deal with someone who has your best interests at heart
When you’re on the hunt for insurance or simply looking to update your current insurance policies, you may not have the time or experience to shop around and compare policies. Using an insurance broker helps to eliminate some of this confusion, as they operate on your behalf to find the best deal possible.
It’s important to keep in mind that everyone’s situation is different and the advice in this blog is general only. To talk to someone about your personal situation, get in touch with one of our team members today.