Needing insurance is a moment most of us face at some point. However, jumping online can leave you flooded with too many options, sifting through policies, exclusions, limits, waiting periods, product fact sheets and unfamiliar terms. It’s no wonder only 1.5% of people who already have insurance don’t bother making the switch to a better insurer, and others just don’t sign up at all even when they know they should.
There is a smarter way. Introducing the insurance broker.
This guide to the benefits of using an insurance broker vs buying direct will help you learn what a broker actually does, how pricing works and why it’s often the easier, more cost-effective choice.
What do insurance agents do?
The job of an insurance agent is to help people select the right insurance coverage. They do this by:
- Understanding your risks, lifestyle or business: They ask questions about your work, family, finances and goals so they understand what’s at stake if something goes wrong.
- Finding policies that suit what you actually need, not just what is popular: For example, life insurance, income protection, trauma, TPD, key person or business expense insurance.
- Highlighting exclusions so you’re not blindsided during a claim: They look beyond price to things like definitions, exclusions, benefit periods and insurer reputation.
- Negotiating terms or pricing, where possible: So you know the important conditions and limitations before you buy, not at claim time.
- Helping with paperwork when things go wrong: From application forms to medical reports and claim lodgement, a broker can help keep the process moving.
Going direct usually means you’re only talking to one insurer and accepting their product as is. A broker helps widen the lens, comparing multiple providers, while explaining the differences in plain language so you can make a call with confidence.
A big part of an insurance adviser’s job is behind the scenes. They make calls, perform product research, assess risk and provide claims support, all to help you save stress.
Client Testimonial:
Big thanks to Steve for assisting me with my insurance needs. He truly simplified the entire process, making it easy to grasp. The application and forms were straightforward, allowing me to navigate them with ease. Now, I feel comfortable and have peace of mind knowing that my insurance is in good hands
– Peter Dawn, Customer
Is it cheaper to go through an insurance broker?
While yes, it can be sometimes cheaper to go through a broker, the real benefits of using an insurance broker is in the quality of the cover & options they provide.
Different insurers assess risk differently. One provider might see your situation as low risk and price accordingly, while another might consider the same higher risk and charge more. An insurance broker helps spot these variations fast and guides you toward the provider who suits your profile.
There is also the negotiation side of an insurance broker’s job. Direct-to-the-insurer customers normally speak to customer service teams who are limited to set pricing. Brokers have established relationships and can request better inclusions or more suitable terms.
The biggest money saver tends to show itself during a claim. There is nothing worse than thinking you are covered, only to discover hidden exclusions. Avoiding that scenario is worth more than shaving ten dollars off a monthly premium.
Do insurance brokers charge fees?
Some do, while others earn through insurer commission instead. Many operate on a mix depending on the complexity of the policy and the level of ongoing support you want.
Fees usually come into play for work that is heavy on research or if you want hands-on claim advocacy. The key is clarity. You should always know what you are paying for and why. No surprises and no half-explained charges.
Top benefits insurance brokers give you
There are several reasons many people prefer using a broker rather than going direct. Some of these are:
- Personal advice instead of one-size-fits-most.
- Time saved.
- More choices
- Backup during claims.
- Fewer nasty surprises.
- Your policy evolves with you.
Read our article on the top benefits of using an Insurance broker to dive deeper into these core benefits that going directly to the insurer won’t provide.
So, which option is better?
If you have a very straightforward insurance need and aren’t too worried about exclusions or potential cost savings, going directly to the insurer may work. For more options, transparency and less stress, going to an insurance broker can be a big time reliever.
Put simply:
Direct = more DIY, fewer options, more responsibility on you.
Broker = more guidance, more choice, more support.
If you’re still weighing up, direct vs using an Insurance broker, it can be worth having a simple, obligation-free chat with our team. That way, you can see your options clearly before deciding what’s right for you.
Insurance Advisers Top Tip:
Don’t just compare premiums, compare definitions. Two policies can look similar in price, but have very different rules around what they actually pay out for.
– The information provided here is general only and does not consider your personal objectives, financial situation or needs. Before you decide to purchase a product, it is important to read the relevant PDS.
