Buying Car Insurance Through a Broker

With the World Wide Web at our fingertips, the way we shop for car insurance has changed in recent years, so much so, that some may say that the traditional insurance broker is now obsolete, but do we really get the best deal by using price comparison websites?

According to Brokers Ireland (IBA), we could end up paying more for our car insurance if we don’t buy from a broker… but then, they would say that wouldn’t they? Here we cover everything you need to know about buying through an insurance broker, with a list of pros and cons to help you make a more informed decision next time your motor insurance policy is up for renewal.

What is an Insurance Broker & What do they Do?

Much like solicitors, accountants, and bank managers, insurance brokers are business professionals specialising in all areas of car, home, and life insurance. With years of experience and access to a variety of products from different providers, they do all the leg work when it comes to shopping around for a new insurance policy, so you don’t have to.

In addition to helping you secure the best, and possibly the cheapest car insurance in Ireland, your Irish Insurance Broker will provide impartial advice on cover, they will clarify all the legal jargon listed in your insurance policy, and they will help you make a claim is the need ever arises. They are extremely useful if you have neither the time nor the inclination to spend hours on the web searching for your next car insurance provider. But of course, they come at a price.

In Ireland, car insurance brokers typically earn 5% – 10% commission according to the IBA, although in a paper issued by the Central Bank of Ireland, that figure was listed at 7.5% – 10%.

Car Insurance Brokers Pros & Cons

When shopping for a new car insurance policy, you have two options. You can go it alone online with a comparison site, or you can employ the services of an insurance broker. While the latter will cost you a fee, could it save you money in the long run? Here we look at the pros and cons of car insurance brokers in Ireland:

The Pros:

• Impartial Advice – a good insurance broker will highlight the pros and cons of each provider/policy without being biased
• Extensive Knowledge– they know the ins and outs of car insurance, and can explain the small print in a language you will understand
• Contacts – with a long list of contacts, they can often secure a better rate than if you were to go direct
• Personal Touch – something you simply do not get when buying insurance online
• Convenience – they do the groundwork for you, saving you time and money
• Help with Claims – your insurance broker will advise if you need to make a claim on your car insurance and guide you through the process

The Cons:

• Cost – you can expect to pay a fee of up to 10% when employing the services of a car insurance broker
• Ghost Brokers – unfortunately, there are fraudsters in the world of car insurance and if you unwittingly purchase a policy from a ghost broker (the name given to these criminals), you could be driving without valid car insurance. The Central Bank of Ireland recommend that you check their online register to ensure your broker is authorised before handing over any money