Are You Better Off Buying Direct Car Insurance or Working with a Broker?
Purchasing car insurance via a broker has been touted as the best way for consumers to save time and money. But many are now finding purchasing direct car insurance is faster and cheaper.
It may seem like you're saving time by getting a car insurance broker to track down the best deal on cheap car insurance, but when you have to spend time comparing brokers first you could actually be wasting time, while taking out insurance with your car loan is rarely the best option as this insurance is tailored more towards protecting the finance company.
Working with a Broker
While industry standards for brokers have improved over recent years, there are still those who weight their advice heavily towards the insurer who pays them the highest commission, or those who will change you for their service. Without spending time comparing brokers, how are you to be sure which is which.
Put simply – when working through a broker you search for and compare brokers to find the one you feel most comfortable working with. You then provide them with all necessary details to find the best insurance options for you. You are then presented with several alternatives and will need to compare these and decide which is the best value. The car insurance broker can offer you advice, but the ultimate decision is yours.
Throughout the process you have assessed and decided on a broker, then assessed and decided on the car insurance company and policy for you. Now compare that process with purchasing direct from the insurance company. You actually cut out at least one step in the process and there are no broker fees factored in.
Purchasing Auto Insurance
Yes, you will still need to compare one direct car insurance company against a number of other companies, but by purchasing direct from the insurer you will be assured of getting cheap car insurance. Australia companies frequently offer consumers the option of an online direct car insurance quote, and by purchasing online consumers can often secure an even lower rate.
Searching the Internet will place dozens of insurance companies at your fingertips. Online facilities offer fast and easy quotes, asking a range of questions that result in accurate, tailored estimates. Web sites provide downloadable policy documents for comparison, and most companies provide a set cooling-off, money-back guarantee if you discover your first choice wasn’t the best choice after all, thereby removing any risk.
When you purchase direct, car insurance is economical and convenient to buy, and you are fully in charge of the process.
[via 1cover]