Insurance Brokers Vs Price Comparison Websites…..Who’s better?…FIGHT!

Insurance brokers are incensed by a mystery shopping exercise that accuses them of charging customers ‘wallet busting’ prices.

The survey claims rely on a broker rather than a price comparison web site can push up car and home insurance premiums by up to £500 a year.

The difference between the best broker and online deals varied by £310 for car cover, £123 for travel policies and £43 for home insurance.

Brokers, led by the British Insurance Brokers Association, their trade body, are furious with the research and they claim customers should focus on quality of cover rather than price.

“It is unfortunate that this is a negative piece in the wider context of much more positive broker coverage that we often receive,” said a BIBA spokesman.

“We don’t agree with the sentiment of the article so will continue our work with this publication and other national media to raise the profile of brokers and educate the wider public on the benefits of brokers, the complexity of policies, the need for advice and the need to focus on cover and not price alone.

“Brokers can provide explanation and advice for what are often complex issues. A travel policy for example is often promoted as a simple policy but it is anything but with over 20 sections of cover.”

So do insurance brokers damage your wealth?

Often insurance brokers provide the same price comparison service as a web site by offering a personal service to customers.

Customers who can gain the most are high-net worth individuals looking for personalised cover for custom designed homes, collections of art, jewellery and antiques and business customers.

Many brokers focus on offering a personal consultancy service rather than competing on price against the web.

If you are seeking standard car or home insurance, the best cover and cheapest cover may well come from a comparison site, but if you need a more tailored insurance quote, try a broker.

This entry was posted in Insurance. Bookmark the permalink.

2 Responses to Insurance Brokers Vs Price Comparison Websites…..Who’s better?…FIGHT!

  1. Brokers want to make money – they are in business after all, not charities. They will quote prices that leave them with a profit. On comparison sites, where price is king, only the cheapest attract business and that is completely price led. In these cases some brokers and insurers are supplying insurance at near or maybe even below cost to grow their books of business for various reasons. Price comparison will always allow the customer to benchmark and determine the lowest price.

  2. Comparing home insurance online is becoming increasingly popular amongst younger homeowners, who are comfortable with entering personal details into online quote forms, considering alternative pricing options, then buying online with their credit card or debit card. Comparison websites provide a wide range of alternative policies and can save consumers huge amounts of time shopping around for the best deal. With high profile advertising on TV, the Internet and radio, most homeowners are already aware of the major price comparison brands. The single, focused sales message, repeated again and again, is ‘use our service to compare hundreds of home insurance policies in order to get the cheapest quote’. It is certainly true in times of economic hardship the primary buying criteria for most people is price.

Leave a Reply

Your email address will not be published. Required fields are marked *