Unless you’re a highly trained industry insider, insurance is difficult to wrap your head around. You’ve got premiums, claims, terms, and risks to consider, on top of more bewildering facets, such as quota share treaties and recital clauses. With such a complex array of regulations and terminology to wade through, it makes sense to get a bit of professional help.

Here are 8 reasons why getting in contact with an insurance broker is the right decision for you.

1. They Work in Multiple Sectors

Insurance brokers are well versed on all different types of insurance. Therefore, they can advise on the ideal coverage for every aspect of your life. From life and car, to home and professional indemnity insurance, a qualified broker will find the best policies for you.

Best of all, brokers have access to specialist insurers, many of whom don’t sell directly to the public.

2. They Do a Custom Job

Insurance brokers calculate a whole range of personal factors including your assets, family, health, income, and risk to various hazards. Through this information, they can determine your insurance requirements and seek out the most appropriate policies on the market.

Working with an insurance broker is a truly bespoke experience.

3. They Won’t Cost You Extra

Insurance brokers don’t charge the end user for their services. Instead, they earn commission directly from the insurance companies for each policy you sign.

Therefore, you won’t pay a cent more through an insurance broker than you would by doing it yourself. On the contrary, they often negotiate better rates which end up helping your bottom line.

4. They’re Honest and Transparent

You’re probably sceptical about an insurance broker signing you up to whoever pays you the most commission. After all, salesmen use this classic trick in countless other industries. But, you needn’t be.

With insurance, the broker earns the same commission from every provider, which means it’s in their best interests to provide you with unbiased advice. Insurance brokers operate on an ethos of transparency, meaning they’re always happy to talk about their commissions and earnings.

5. They Know Their Stuff

Every insurance broker in Australia is a fully licensed and qualified professional. Many have done graduate degrees in finance or economics, often majoring in the insurance sector. Others have completed TAFE insurance broker training programs, before working as an apprentice.

In either case, your broker has amassed a wealth of industry-specific knowledge over the years which they can use to pinpoint the best kinds insurance policy for you.

6. They’re Easy to Work With

During the initial or first few consultations, you’ll likely want to meet your broker face to face, to discuss the options available to you. For later correspondence, however, you probably won’t have time.

Insurance brokers understand the busy 21st-century lifestyle as they live it themselves. Consequently, they’re flexible and happy to communicate through a variety of different means.

7. You Can Trust Them

Insurance brokers must abide by a range of regulations and legal obligations, all of which are outlined in the National Insurance Broker’s Association Code of Practice. In essence, brokers must provide advice that follows the principle of utmost good faith and that serves the interests of the client over the insurance company.

This prospect is further consolidated by the fact that insurance brokers don’t earn extra commission for recommending specific companies.

Consequently, you can rest assured their recommendations are suitable for your personal requirements.

8. They Can Help You Make a Claim

Insurance brokers do more than just recommend insurance; they can help you through the claiming process as well.

Making an insurance claim is an overly complicated ordeal, one which many everyday Australians fail to comprehend. Having assistance from a highly-trained professional with extensive industry contacts could well make the difference, between a valuable claim being accepted or denied.

Choosing an Appropriate Insurance Broker

To get the best possible insurance for you, it’s crucial to go through a reputable company, rather than a fly-by-night operator. Ideally, opt for an insurance broker with decades of experience and a tailor-made approach in strict adherence with the Code of Conduct.

If possible, try to find one who is a member of a large-scale Australian insurance broking group, such as Steadfast. If you can find a company that boasts all of the above, you can be sure they’re well positioned to recommend the best insurance for you.

Categories: Personal Finance