You may ask yourself, what is best, buying insurance through a comparison website or purchasing from a broker?
In recent years online comparison sites have become ever more popular. Likewise, the way we buy building insurance has changed dramatically. There are now many comparison websites that are becoming more popular. It means that consumers can easily compare the price of hundreds of insurance products from the comfort of their own home. But is it the best way to buy insurance? Do you get what you pay for?
Why have comparison sites become so popular and are they really the better option?
It may seem that comparison sites seem an easy option when looking for a better deal on insurance. It’s simple and easy to fill out the details and then have a wealth of quotes to choose from. They are usually ranked from cheapest to most expensive. It seems ideal for those of us that have a busy lifestyle who want the opportunity to shop around for the cheapest deal in the simplest way. However, cheap insurance is also likely to provide a very limited level of cover. The rise of comparison sites has brought about a rise in competition among insurers. They know they need to be at the top of any search results to be in with a chance of winning the sale. This has led to stripped down cover and high excesses.
You might feel that you have bagged yourself a bargain after using a comparison site. But you may run into further costs if you have to make a claim and find that you don’t have sufficient cover. Obviously, you take out insurance to make sure that you are actually covered when you need to claim. What you don’t want is to make a claim and suddenly find that your insurance doesn’t cover it.
You may also find that to keep prices low some insurers have now increased the excess or added a voluntary excess. This means that if you have a £1,000 claim you might end up paying for the first £750.00.
If you have ever used a comparison website, you may have seen that you are asked to state the amount of excess to pay on your policy. , this is usually the voluntary excess and, this is then added to any compulsory excess. So in the event of a claim, you could have to pay a much higher sum than first thought.
Did you know that insurers pay to be at the top of the list on any comparison site? Insurance companies choose to pay for preferential comparison site listings instead of advertising by other means. For them, it is a better use of their money. For the end user though it can result in a confusing and misleading sales journey. The quote at the top of the listing may not be the highest level of cover.
Why use a Broker?
Brokers such as us will work with a panel of insurers and so will have access to the whole market. Often brokers have access to insurance products that cannot be bought on a comparison website. Buying your building insurance from a broker can give you access to expert advice and help you gain the most suitable insurance.
We will, for instance, talk to you over the phone and go through what cover you actually need. Also, discuss the property in detail and your personal circumstances. We can check what cover you already have on your current policy and then match it or increase it. You may not appreciate that a lot of insurance companies offer insurance products with low levels of cover on comparison sites. Yet brokers have policies that cover a substantial amount of items such as:-
Property owner’s liabilities in case tenants injure themselves
Loss of rent cover and alternative accommodation when the property is uninhabitable.
Theft by the tenant (often excluded by many insurers)
Trace and access for damage to the property when finding a cause of a leak
No reduction in cover for up to 30 days when vacant
Eviction of squatters
We would be able to provide you with fantastic personal service and you won’t just be another number in a computer. We can identify what you need in relation to any specialist cover.
One of the major benefits in purchasing through a broker is to ensure that we are able to help you when you have a claim on your policy. You will often find that claims can be quite arduous and difficult to deal with.
What to do next?
If you decide to purchase from a comparable website it may be an idea to check the policy wording. This is to ensure that your property and possessions are adequately covered and you are aware of what is not covered should you make a claim.
We will be able to provide you with added benefits and look at the small print.
Please do not hesitate to contact us in this regard.