The Comparison Between Traditional Car Insurers and Direct Insurers
There are two different kinds of car insurance companies that you can go with.
We will discuss the difference between traditional and direct motor vehicle insurers.
Traditional Car Insurance Brokers A traditional car insurance broker will deal with you through an insurance broker.
An insurance broker is a sales and client relationship management person who has been appointed by the car insurance company to deal with clients.
The insurance broker will assist you in choosing the right car insurance policy for your individual needs.
The insurance broker develops a personal relationship with each of their clients, therefore building trust in the insurance company.
If you are dealing with an actual person at your insurance company, you will feel more secure and looked after.
The insurance broker will earn commission from your premium, leading some people to believe that their premiums are therefore more expensive because of this.
Direct Car Insurance Brokers Direct insurers are car insurance companies that have decided to cut out the middle man to save money on commissions.
By dealing directly with the client without going through brokers or intermediaries, they are saving money.
These kind of insurance companies have to use excellent marketing tools to grab the attention of the public, as they do not have sales people contacting the public.
They usually use media outlets to contact the public, such as television, newsprint, magazines and radio advertisements.
The direct insurer then has a call centre where the client can contact them.
All their details are then captured through someone at the call centre and then the policy contract is drawn up.
A commission fee is paid to the call centre agent, but this fee is once off, not like the broker's commission which is paid every month.
So how do you determine which insurer will be better, and will save you more money.
It can seem like a direct insurer will be a wiser financial decision, but you also have to consider that sometimes the money they have saved on brokers commissions has been spent on marketing.
Advertising is a VERY expensive business, and the direct insurers have to have a huge budget for that.
Regardless of which insurer to go with, you just need to ensure that you have done enough research.
Compile as many insurance quotes as possible so that you can make good comparisons.
Speak to your friends and family about who they are insured with.
Ask them for their honest opinions.
Remember that your insurance needs are unique, and you could pay less for your individual needs with one type of insurer than the other, whereas it may not be the same scenario for someone else.
We will discuss the difference between traditional and direct motor vehicle insurers.
Traditional Car Insurance Brokers A traditional car insurance broker will deal with you through an insurance broker.
An insurance broker is a sales and client relationship management person who has been appointed by the car insurance company to deal with clients.
The insurance broker will assist you in choosing the right car insurance policy for your individual needs.
The insurance broker develops a personal relationship with each of their clients, therefore building trust in the insurance company.
If you are dealing with an actual person at your insurance company, you will feel more secure and looked after.
The insurance broker will earn commission from your premium, leading some people to believe that their premiums are therefore more expensive because of this.
Direct Car Insurance Brokers Direct insurers are car insurance companies that have decided to cut out the middle man to save money on commissions.
By dealing directly with the client without going through brokers or intermediaries, they are saving money.
These kind of insurance companies have to use excellent marketing tools to grab the attention of the public, as they do not have sales people contacting the public.
They usually use media outlets to contact the public, such as television, newsprint, magazines and radio advertisements.
The direct insurer then has a call centre where the client can contact them.
All their details are then captured through someone at the call centre and then the policy contract is drawn up.
A commission fee is paid to the call centre agent, but this fee is once off, not like the broker's commission which is paid every month.
So how do you determine which insurer will be better, and will save you more money.
It can seem like a direct insurer will be a wiser financial decision, but you also have to consider that sometimes the money they have saved on brokers commissions has been spent on marketing.
Advertising is a VERY expensive business, and the direct insurers have to have a huge budget for that.
Regardless of which insurer to go with, you just need to ensure that you have done enough research.
Compile as many insurance quotes as possible so that you can make good comparisons.
Speak to your friends and family about who they are insured with.
Ask them for their honest opinions.
Remember that your insurance needs are unique, and you could pay less for your individual needs with one type of insurer than the other, whereas it may not be the same scenario for someone else.