Frequently Asked Questions
Why Use an Insurance Broker?
Insurance Brokers must have adequate qualifications/experience to give professional insurance advice and must adhere to strict accounting rules at all times as laid down by the Financial Services Authority (FSA). Insurance Brokers must be covered against claims brought against them by clients for errors or omissions. Insurance Brokers put their client’s interests first at all times.
Direct Dealing
Some insurance companies offer policies direct to the public, often with temping low premiums and sometimes a free gift thrown in too. But beware - Insurance is an extremely complicated subject that takes years of specialist training to understand properly. There is an old saying amongst legal circles “He who acts as his own lawyer has a fool for a client". Sadly, the same is often true of people who try to act as their own insurance experts and arrange policies themselves, direct with the insurance company. If they get it wrong – even minor details – the financial consequences can be disastrous, with no one but themselves to blame! That is why it always pays to consult an INSURANCE BROKER first.
What is insurance?
Insurance is a way of protecting yourself and your belongings against a particular adverse event, for example, a burglary, or losing your income because of illness. If this happens, insurance will pay out an agreed amount, or an amount to cover the damage, as appropriate. Of course, it may not happen, but you have to decide whether you're willing or able to take that risk. Some insurance, like motor insurance, is compulsory – you have to have it if you drive.
How does it work?
The amount you pay for insurance will be based on the information you give the insurance company (the underwriter) and the type of risk you want to insure. Insurance companies use underwriting criteria, for example, where you live, if you smoke or what type of activity you would like to be covered to help them work out the price (premium) of the insurance.
Some insurance companies may not be able to give you a price for the cover you need. This could be because that particular insurance company doesn't offer insurance for the type of risk you want to insure (for example things like motor caravans or vintage cars).
The insurance company agrees to pay out if the event which you're insuring against happens. For example, your travel insurance policy may pay out for loss of luggage. It is important that you give the insurance company the correct information when buying insurance as incorrect information might affect your claim.
Most insurance lasts for one year at a time and you can renew your policy when it ends. An Insurance Broker will check to see how competitive the renewal invitation is and advise accordingly. An Insurance Broker will always check that a new policy covers what you need it for. In addition an Insurance Broker will always compare what's covered by a policy, not just the price. Some might be cheaper than others, but they may not offer the same level of protection.