Insurance brokers vs insurance companies: What’s the difference?

An insurance broker is licensed to sell insurance policies to people, but they don’t work for one insurance company. Instead, they work for their customers. Insurance brokers are effectively a liaison between the customer and the insurance company and find you the best policy among multiple insurance companies and at the best possible rate.

An insurance company is a corporation that provides insurance policies to its customers and in some cases, can sell directly to the customer. The insurance company assesses the risk and uses this to determine the premium (price of the policy). If you need to make a claim, the insurance company will be the ones to pay out for the claim.

What are the benefits of using an insurance broker?

Considering the information above, the obvious benefit is that an insurance broker can do all the comparison work for you. Many believe that comparison sites are the cheapest option (you can read more about this here). However, in a climate where premiums are ever increasing, an insurance broker has the knowledge and access to the market, finding you the best possible policy and premium. Other benefits include:

• Guidance – brokers can give advice and help define and explain the often-confusing language in an insurance policy
• Claim assistance – brokers ensure your claim is managed quickly and efficiently, keeping the insurance company accountable.
• Choice – the more insurance companies a broker has in their network, the better the choice. Although brokers generally don’t have access to the whole market, there’ll be plenty of options available to you, often tailored to your needs. For example, if you own a listed property, you can use a broker that specialises in this area (like Abode).

It’s important to keep in mind that an insurance broker is working on your behalf, so if they present you with a price or policy that you aren’t happy with, you can ask to see something else. Likewise, if your broker is telling you that a policy is the best they can offer, their hands are probably tied with high premiums set by insurers, and it really is the best they can offer you.

Abode is an insurance broker so we’re on your side. We do our very best to ensure that our clients receive excellent service, competitive premiums, and comprehensive policies.

Not only are we working on your behalf, but we’re also listed property specialists, meaning we understand your listed building needs. We have a panel of trusted, specially selected insurers that also understand listed properties and the quirks that come with them.

Using a specialist broker saves you time and can save you money, whilst ensuring you get the most suitable protection for your listed property. And with that in mind, you can be very sure who is always on “your side”.

Contact us today on 01622 476433 or click here to find out more.