Why brokers aren’t more expensive than direct insurers

Direct Insurers often claim that going direct to an insurer and cutting out the “middleman” will save you money. A study conducted by the Moneybags organisation, specialist saving advisors, states that the average direct insurer charges 13% more on car insurance than traditional brokers.

Angelique Ruzicka, editor of Moneybags, says that their car insurance comparative exercise proves that direct insurers are not always the most cost effective. In addition to monetary expenses, going through a broker means having the advantage of personalised financial advice. Going through a call center agent will not yield this benefit.

Choosing the route of broker equates to only dealing with one contact who is personally invested and accountable for helping their clients. When the time comes to claim, your broker will liaise with your insurer, saving you the time and hassle of waiting in call center queues.

In addition to the time and money saved, we found that insurer’s excess quotes were on average 16% more than those quoted by brokers. Direct insurers will often raise the excess amount in order to attain a lower monthly premium. This is not always advantageous as many cannot afford to pay the excess to get their car repaired. Paying less in excess charges will save you money.

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