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What is an insurance broker and is a broker best for me?

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April 8, 2020
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Some people use an insurance broker such as Adrian Flux, others get their home and motor insurance through a price comparison or aggregator website, but what’s the difference and which is best for you? Here we answer your FAQs.

insurance broker

So what is an insurance broker?

An insurance broker is a professional company regulated by the Financial Conduct Authority (FCA) and it’s prime function is to help clients find suitable and cost effective insurance protection. Brokers act as an agent of the client and represent their best interests. 

Why use a broker rather than a comparison site?

On the comparison site you will search for your insurance using a set of questions on a website. When you contact an insurance broker you will be talking to a real person who will take the time (but not too much time) to learn about your personal circumstances in order to find the best policy for you.

Comparison sites tend to offer generic policies, it’s a one size fits all scenario, whereas a broker will know where to find a policy that is a better match for your individual needs. 

Computers on price comparison sites cannot make judgement calls, an insurance broker on the other hand can use common sense and make sensible decisions.

If I consult a broker I pay the broker, but who am I insured with?

Adrian Flux uses a panel of more than 40 insurance companies to search for the most appropriate cover for you. When you get a quotation, we will tell you who the insurance provider is and the terms of the policy. Once you take out the policy, all of this information is sent to you including your policy details, how to make a claim, your insurance documents and the full policy terms and conditions.

insurance broker

Does an insurance broker earn commission by selling policies for certain companies?

Just like comparison sites, an insurance broker will get paid commission by insurance providers for selling their products. That means you don’t have to pay the broker a fee for shopping around on your behalf.  

Does that create a conflict of interest between the insurance broker and the client?

No. All providers pay insurance brokers a commission so there is no benefit in selling one policy as opposed to another. Instead brokers can concentrate on finding a policy that is best for you and your personal circumstances. 

Why shouldn’t I just go to a comparison site?

Comparison sites are certainly convenient but they are not always the best way to search for your insurance.

The policies offered by comparison sites are pretty generic so if you want a policy that takes into account special circumstances — perhaps you want to insure a classic car or a valuable antique collection in your home — it would be better to use an insurance broker.

The comparison site will grade your insurance offers by price and certainly makes it easier to find the cheapest price they are offering. But you may find that using a specialist broker like Adrian Flux gets you a more competitive quote and saves you money, as they can assess each risk as an individual and not as a set of answers on a standard form.

The best Adrian Flux insurance deals are not found on price comparison sites and they are almost always better over the phone. In fact, 79.5% of customers could get a cheaper quote over the phone, based on information provided by them. 

insurance broker

Do staff at Adrian Flux have any specific training?

All staff go through an extensive period of training over several months. That’s before they have even taken a call from a customer.

And just as policies are specially selected to suit our customers’ needs, we take into account the interests and knowledge of each member of staff when deciding which area of the business they should work in.

If we have bike enthusiasts for example, they end up on motorcycle insurance, fans of modified and custom cars will look after queries in that department, classic car enthusiasts will likely end up in our cherished vehicles department and so on. 

We have a lot of enthusiasts, people who probably know as much about your car, van or motorcycle, as you do. 

Adrian Flux specialises in bespoke motor insurance and buildings and contents insurance. To discuss your needs with an experienced insurance broker call 0800 369 8590 — our best deals are always available over the phone — or book a call back at a time that suits you during office hours. 

 

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