We all love paying our monthly insurance premiums, right? We simply cannot wait until those payments start emptying our bank accounts like clockwork shortly after payday, right? I am sure that you will agree that those are two of the silliest statements you have heard in a long time! Then why, if paying our insurance premiums leaves such a bad taste in our mouths, do we settle for the first policy we can get our hands on? Why don’t we do a bit of homework until we find the most affordable policies with the best cover? Won’t paying our insurance each month then be a bit less painful?
One of the best ways to find insurance policies is by making use of an insurance broker.
Most “normal” people (and I categorize myself in that category too!) don’t have extensive knowledge of the insurance industry. To be quite honest, basically all I know about insurance is that it costs me a lot of money each month and that it will hopefully take care of me when I am involved in an accident, or when a thief decides that my 50 inch plasma screen television would look better in his home than in mine!
For that reason I will believe anything I hear. If the insurance company suggests that I make use of policy A, and that I must also select policy B, C, and D on top of that (to get the best coverage of course!) chances are that I will believe them and that I will most probably end up paying 5 times more than necessary.
An insurance broker on the other hand, makes a living off insurance! Selling insurance policies is their “8 hours a day 5 days a week” occupation and that makes them experts in the field!
The good news about employing a broker is that they won’t be costing you anything more – you might in fact end up saving money! Yes, of course these brokers need to get paid for their services, but this is usually in a form of commission from the insurance companies. These commissions already form part of your monthly premium, regardless of whether you use a broker or not. That’s right! If client A opts for policy A from company A without making use of a broker, client A will be paying the same for this specific policy than client B would be when making use of a broker.
Another plus point about using the services of an insurance broker is that they don’t work for a specific insurance company (don’t confuse an insurance broker with an insurance agent). For this reason your broker will be able to supply you with various quotes and options from various insurance providers. They will also know which policies and companies to steer clear of.