Although it\'s never been easier to buy your car insurance using the internet, it\'s even easier if you can get an expert to do it all for you. If you choose the right insurance broker you could get the best policy for your needs at a great price without lifting a finger.
However, it is in your best interests to be aware of and know how to avoid some of the tricks and tools that some brokers use in order to increase their profits. Even though their intentions are honorable, giving customers the best service and advice possible often clashes with a brokers desire to earn the best commission. Listed below are a few simple points you should be aware of when shopping for motor insurance through a broker.
How to Avoid the Sales Questions
Remember that a broker is still a salesmen with targets and bills to pay and will have ways to extract information from you. That information could be used quite legitimately but also to judge how much they can get away with charging you for a policy. If they know how much you are prepared to pay you are immediately in a weak bargaining position. You should never answer questions about specific premiums but instead answer questions such as "How much have you budgeted for car insurance? with "How little can you arrange it for?" Answer the usual question of "What other quotes have you had?" with "Let me hear your lowest quote first." Make the broker work for your business and demonstrate that they can offer you the best price.
Paying in Monthly Installments
You are simply financing your entire premium when paying in monthly installments rather than paying the premium all in one go. This could result in you paying interest rates of as high as 29% APR. Even if you can\'t afford the full annual premium, pay for the year on a low interest credit card and avoid the high interest charges.
Profiting from Premium Changes
Be aware of your insurers approach to policy alterations such as a change of car, address or name drivers. Some of these events could result in an increase or reduction in premiums. Some brokers may or may not be entirely honest about the cost of any changes. You may move to an area that is less risky, whereby your premium will be reduced. Your broker may, however, inform you that there is no change in your premium and pocket the difference along with any administrative fees levied for making the alteration for you.
Finding a Good Broker
Like any profession, not all brokers are created equal or entirely competent. In the worst case scenario, you may find yourself driving with a policy that won\'t pay out because something that your broker omitted to check voided the cover. More likely, you could miss out on extra benefits or premium savings because your needs are not matched with the best policy. However, the truth of the matter is, that it is your personal responsibility to ensure that your broker has all relevant information that your insurer may wish to know.
Some of the important details your boker will need to know include:
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