Why Should I Use an Insurance Broker?

Why Should I Use an Insurance Broker?

When looking for a new motor trade insurance policy, the easiest option can often be to jump onto a comparison site. Whilst this can possibly give quick results, it’s quite likely that a cheap deal will not be giving you the coverage you need, or you may be paying for expensive and unnecessary add-ons.

Comparison insurance websites allow you to view different policies available, but not all insurers will be on the sites – and therefore you are only seeing some of the companies available on the market. Also, if you are looking for motor trade insurance, it’s necessary to note that comparison websites are unlikely to compare like with like, making it difficult to know what features are included in each policy.

Then there is the cost - the cheapest policy may not offer you all the cover you need for your business. There may be a higher excess or some exclusions you weren’t aware of when accepting the cover.

A specialised motor trade insurance broker is experienced in getting you the exact insurance you need for your industry, can advise on new policies as your business expands and get you the best deal for your business.

Here are just some of the reasons you should be investing in an insurance broker for your motor trade business.

What is an Insurance Broker?

Insurance brokers are independent experts and are particularly important if you are looking to cover a business that needs specialist motor trade insurance. Brokers are able to source a competitive policy, ensuring that you are covered for everything you are going to need for your business.

An insurance broker acts as the middleman between the individual seeking insurance and the array of companies offering motor trade insurance or even van insurance.

What are the Advantages?

There are many advantages to using an insurance broker rather than using comparison sites.

  1. Finding the right cover for you: if you are starting a new business, a broker will be able to consider all your personal circumstances to find a policy that is tailored to suit your needs, including professional indemnity or liability insurance, buildings and content’s insurance or goods in transit. In addition, specialist brokers will look at any policies you already have in place to avoid duplication and extra unnecessary costs.
  2. Personal service: when starting out in business, understanding insurance terminology and legal jargon can be daunting. An insurance broker can talk you through the policy to make sure you understand what your cover includes, arrange it with an appropriate insurer and check that all the documents are correct. Having a dedicated person to oversee your account means there is always a direct line to them when questions or updates arise in the future.
  3. Finding specialist providers: insurance comparison sites tend to be broad in their policy options. If your business needs specialist coverage, such as protection for work on high value or performance cars, then a broker will know the right insurance companies to contact. Most brokers will already have relationships with specialist insurers that offer affordable rates suitable for your motor trade business.
  4. Better premiums through an insurance broker: it’s often a misconception that getting your insurance through a broker will be more expensive. In fact, brokers often offer more cost-effective polices than a direct insurer. An insurance company is more likely to offer a lower rate to a broker as the insurer knows that the client will have been thoroughly risk assessed. Also, with such a huge selection of insurance companies in the UK, an experienced broker will know the market and the best rates available.
  5. Support when making a claim: When things don’t go quite as planned with your business, it can be a stressful time. An insurance broker will provide invaluable advice and support throughout the process. They will already be up to speed on the details of your policy and, in the unfortunate even of a claim being disputed, they are able to argue the case on your behalf. Most brokers have an in-house claim’s team that work closely with insurance companies and have access to specialist loss adjusters.

When choosing the right broker for your business, check that they are regulated by the Financial Conduct Authority and have links to trade body associations such as the British Insurance Brokers Association.

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