Insurance Brokers vs Insurance Aggregators
How many insurance brokers does it take to get a cheap insurance premium? We don’t know, we don’t use them. Insurance.co.za is one of a host of online insurance aggregators that source long- and short-term insurance quotes for users to help them find a more competitive insurance policy.
The internet may be quick, smart, and made of cats, but can it beat an insurance broker? We’ve compared online insurance quote aggregators with insurance brokers to figure it out.
How do Insurance Aggregators Compare with Insurance Brokers?
1. Number of Insurance Quotes.
Insurance brokers earn their keep by getting a percentage of your premium from the insurance company that covers your possessions. Some insurance companies pay more of a percentage. Brokers, to earn more, prefer to source quotes from these insurers despite the cover it affords you. This means you might not be getting the best cover, nor the cheapest.
Online insurance aggregators don’t receive a percentage of your insurance quote. They’re unbiased and send your details simultaneously to each insurer, who then contacts you directly. This allows you to choose the policy that meets your needs.
2. The Small Print.
Online aggregators of insurance quotes get insurance companies to respond to you via telephone in order to enter into a legally binding contract with you. This makes understanding the terms and conditions of the insurance policy difficult. It’s easier to read the terms and conditions than hear them repeated to you monotonously.
An insurance broker, however, can go through the policy document with you before you sign it, so you understand the extent of the cover.
3. Customisability of the Cover.
Aggregators of insurance quotes deal with direct insurers. Direct insurers offer standardized insurance policies that aren’t very customizable. This means the type of cover you get from aggregators may be cheaper, but may also not cover all your bases.
Insurance brokers on the other hand, deal with insurers that provide specialized insurance policies that cater for your unique risk profile. Although it’s more expensive, insurance brokers are a better option if you’re insuring a specialist item, such as a vintage car. Insurance brokers will also make sure all your risks are fully covered.
4. Cost of the Policy.
As previously mentioned, insurance brokers are paid by the insurance company. This cost is built into the price of the premium or offset across the insurance company’s member base. You’re more likely to payer higher premiums through a broker than a direct short-term insurer.
Aggregators of insurance quotes make use of direct insurers. These insurers offer cheaper premiums because they don’t have to pay brokers’ fees. You’re also more likely to get a cheaper policy by comparing them through an aggregator than with a broker as they usually deal with more insurers.
5. Time.
Insurance brokers contact insurance companies in much the same way you would, if they’d listen to you. Insurance brokers are reduced to contacting each insurance company individually to source a range of quotes for you (if this is the M.O.) Oftentimes, insurance brokers rely on their knowledge of the insurance industry to go directly to the insurer they believe will cover you.
Online aggregators send your details simultaneously to each insurer. The delay you experience between filling in your details and getting a call from the insurer is most likely a result of the insurer’s customer response than the aggregator. This, then, gives you an opportunity to measure each insurer’s response time.
Online insurance aggregators function differently to an insurance broker. If sourcing insurance quotes is what you’re after, an aggregator is a better bet. If you’re looking for someone to manage and compile an insurance portfolio (from life and health insurance to short-term insurance) then a broker can be worth the cost.
About Insurance.co.za
Insurance.co.za is a local insurance resource for consumers to help them source medical aid and insurance quotes from South Africa’s leading short- and long-term insurers and medical schemes. Just by comparing different insurance companies’ offerings, you can save on insurance premiums.
[vc_row css=”.vc_custom_1586440870239{background-color: #16b7e5 !important;}”][vc_column][vc_row_inner][vc_column_inner][vc_column_text css=”.vc_custom_1590757419944{margin-bottom: 5px !important;}”]
GET FREE INSURANCE QUOTES NOW!
[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]
