Why should I consider an insurance broker?
A good insurance broker will give you expert advice on purchasing an insurance policy, ensuring you get the right level of insurance cover and potentially saving you money.
Many insurance companies in South Africa offer insurance quotes online with the promise to save money by dealing with them directly and cutting out the middle man. It makes sound financial sense to get quotes from all the major reputable insurance companies to find the cheapest policy possible.
So insurance brokers are a waste of time?
Not at all. In fact, an experienced insurance broker will do more than find you the best deal.
A good insurance broker offers two essential services: making sure you have enough cover and ensuring that you are not over insured.
If you do not have adequate insurance cover, this could prove costly when you need to claim. You may find that not all the items you thought were covered by a policy were in fact covered, or the payout for some items may be less than you were expecting.
Being underinsured is disappointing and inconvenient, but it can also be a real setback. For example, if your motor insurance policy does not cover all incidents, and you depend on your vehicle for your livelihood, you may find yourself placed in a very difficult financial position.
A seasoned broker will explain all these possibilities and take your personal circumstances into account before recommending an insurance policy.
On the other hand, paying for insurance you do not need is a waste of money. An independent broker is in a position to advise you on the most prudent options.
Too long; didn’t read
Reading the fine print is an insurance broker’s job. While you should always read the fine print yourself, your broker should explain clearly and fully all the details the insurance companies hide in tiny letters.
If you do choose to buy insurance through a broker, do not hesitate to ask as many questions as you need to get clarity on all aspects of your policy.
Reduce risk, save money
Your broker will also explain whether you can save money by finding a policy reserved for your risk profile.
No less important, your broker can help you save money on insurance premiums by reducing risk. For example, by improving home security to reduce household insurance premiums or by helping you get the best out of your health insurance by improving your lifestyle habits.