Should you buy car insurance directly from an insurer or through a broker?

South Africans have several ways to go about buying car insurance and dealing with their insurers daily. Some South African families may have a ‘family’ broker who has been taking care of your family and your extended family’s car insurance for many years. Other South Africans perhaps took the alternative option of buying car insurance directly from an insurer when this became popular in South Africa. There may be certain factors that drive choice between the two ways of buying car insurance, which could include convenience, level of service, level of trust and value for money.

Buying car insurance in South Africa is popular in both ways. Some insurers work through brokers while other car insurance companies work directly with the public. Some insurers provide their own internal ‘brokers’ that offer personalised service from a qualified individual.

How will you decide how you buy your car insurance in the future? Perhaps consider what works best for you and your unique circumstances. Let’s dig a little deeper into this exciting topic.

Car insurance brokers1

Buying car insurance may not be a highlight for you and not a pleasant experience in some cases. It may be convenient for you to have someone you trust to take care of the leg work when dealing with car insurance claims, adjusting your premium when your risk profile improves, finding you better deals on an ongoing basis and other admin.

A broker deals with the car insurance company on your behalf, which may be beneficial to you. Brokers don’t work for free. This service comes with a price, which is carried by you should you make use of their service.

Buying car insurance directly from insurers1

Don’t want to pay for a broker’s fees? Do you prefer to be more in control of your insurance-related decisions? Perhaps consider buying your car insurance directly from the insurer of your choice. Consider researching multiple reputable car insurance companies online. Compare quotes. Read all of the fine print before you make your final choice. Also, be ready to deal with the associated admin. However, major insurers continue to ensure that the customer journey is as easy as possible. For example, some make it easy to submit claims through the use of apps. You may need to stay in regular contact with your insurer to get the most out of your car insurance.

Car insurance quote comparison websites1

There is a third way of buying car insurance which could be considered. Comparing car insurance quotes online through a convenient comparison website service could be handy. Always ensure that you are comparing ‘apples with apples’ when you study the pricing in the quotes. Car insurance comparison websites don’t offer this service for free. Insurers pay for these potential sales that they receive via the relevant comparison website. This cost might be considered when calculating premiums.

Disclaimer

Please always get advice from a certified financial adviser before you buy any car insurance product. This article should not be seen as providing advice, which is only for informational purposes.

Sources:

1. 1. Is it better to get car insurance from a broker or to go direct?