Head or Heart? How to Compare Deals put Forward by Insurance Brokers

You have managed to narrow down your search to two insurance brokers you like and they have presented you with two competing quotes. Now you have successfully narrowed down your broker candidates, how do compare what they are putting in front of you?

Premium

Of course, the money you are paying is very important and the easiest thing to do is compare the two quotes. If it is just down to the number at the bottom of your quote this clearly is the simplest way to choose a preference. When taking this approach, avoid any surprises by making sure you are aware of all applicable costs including tax, administration fees and broker fees that may come in addition to your quoted figure. But there may also be other factors that you may want to consider before making your decision purely on cost.

Value for Money

The issue with just focussing on the premium is that it leaves no way of actually comparing what you get for your money! As with restaurants, you often get what you pay for!

For example, does one quote provide more cover than the other? Do you have a larger insured limit on one policy or a particular cover that will be useful to your business? Is there the option to extend your limit or add these extra covers in? Does one have a higher excess to pay in the event of a claim?

What about the brand of the different insurers where these quotes have come from? Have you heard of them before? What can the brokers tell you about them? Do you know their credit ratings or which one has the better claims service? Do you have the option to roll in all of your other insurance policies with them if you would like to do that?

Included in this consideration is how much the broker is earning. This is either made up with a pre-agreed fee, or as a commission on your premium. Do you know how much your broker is taking to handle your renewal? If not, why not? If so, are you happy to pay this for the service you have received? How do the broker earnings compare for your two options and is it justifiable to you?

The Big Step Back

There is a certain element to this which isn’t just going to be down to the numbers put in front of you.

How has the overall experience been for you? Does a broker front-runner emerge based on your whole journey? Would you be willing to pay a little more, in exchange to dealing with your preferred broker? Perhaps the one who has clearly demonstrated their superior knowledge or has done more to build trust with you?

Maybe this is the broker you have the longer existing relationship with or it might just simply be down to the overall feeling you get when speaking to them. It may be the service you receive from one broker over the other or even just their overall manner. The relationship you hold with your broker is going to have certain aspects you can’t fully quantify and the way you chose to proceed is always your final (and very important) call to make.

If you’re still trying to work this bit out have a look here to see the sort considerations to make when weighing up two brokers.