Right now we're in a very interesting insurance market. Sometimes we can save a client over $1,000 on a budget direct to market insurance product, but other times we come in well above and we understand it's difficult to make the decision to pay more for something that seems to offer the same coverage.
There are undoubtedly differences in the policy wording, but often these appear to be minor variations that don't really swing the lever towards paying more. The biggest difference that I try to highlight with my clients is the attitude towards paying claims - because that's why you're purchasing insurance!
Direct market insurance companies (the guys that advertise on TV) spend a lot of their resources on their sales teams aiming to get a steady stream of new customers in the front door because they're playing the price game. This means they're constantly losing clients out the back door as well through poor customer service, excessive premium increases or worst of all - negative claims experiences.
The products we sell may be more expensive in some instances, but the insurers we work with all spend the necessary resources on their claims departments to make sure that valid claims are paid out in a reasonable time frame. You've also got the added benefit of having us in your corner to make sure things stay on track!
Car Insurance is so expensive because repair costs keep going up with the price of parts and labour, so the only way for an insurer to make money selling car insurance is to have a constant flow of new customers coming in the door while avoiding and reducing the costs of as many claims as possible.
Home Insurance is so expensive because repair costs keep going up with the price of materials and labour, combined with the increasing frequency of natural perils and extreme weather events. So again the only way for an insurer to make money selling home insurance is to have a constant flow of new customers coming in while avoiding and reducing the costs of as many claims as possible.
You shouldn't have to fight to get your claim paid, but it's a very real possibility when you're choosing insurance on price alone. My favourite review website is Product Review where you'll see lots of amazing 5 star reviews from customers who have saved a lot on their annual premium, but there's often just as many 1 star reviews from people who've had a nightmare claims experience.
The good news is that we work with amazing insurers who all offer quality products - and most importantly - the necessary resources in the claims departments. They have us selling their products so they don't need to spend a fortune on marketing and sales staff, which means that in most instances we can confidently recommend products from our panel based on price knowing that you're not compromising on product.
Sometimes I wish that insurance products could be represented in a tangible product that you can touch and feel to see the difference in quality, but that's why our job as insurance brokers is so important to explain the differences and help you make a fully informed decision.