Car insurance brokers

Are you curious about how to get the best possible car insurance? Well, a car insurance broker can help you here as they will not only help you find the best policy but will also …

Are you curious about how to get the best possible car insurance? Well, a car insurance broker can help you here as they will not only help you find the best policy but will also tailor it to your personal needs and budget.

Since car insurance is a legal requirement, you’re likely to want a good deal. Did you know that on average, a man in his twenties pays £1,013 for motor insurance? A broker can always get you a better rate.

About 20 million households in the UK have car insurance, and their claims add up to 13.4 billion pounds. So, with a good premium, you can be confident that any accidents will be covered for a smaller insurance fee.

In this article, you’ll get an overview of car insurance brokers and what they can do for you. You can find out more about car insurance too, and get familiar with what policies are available. Read on to find out where and how to get cover for your vehicle.

What are car insurance brokers?

Car insurance brokers liaise with insurance companies to find you the best car insurance deal on the market. Your car insurance broker will work for you and not a specific insurance company. That means that once they know your needs, they’ll give you a list of options that are advantageous to you.

Then, once you do need to make a claim, they help you. Brokers offer you guidance and negotiate on your behalf. They protect your interest at all times.

Can you get a better car insurance quote through a broker?

A broker can get you a better car insurance quote, but their service is not about getting cheap car insurance. It’s about bringing you the best price and the best insurance package. They are looking to find you the best value car insurance for your needs.

Your local insurance broker can reach out to multiple insurance firms to get you car insurance quotes. When they do this, they get access to outstanding premiums. They can negotiate the price on your behalf and get you the best price for your quote.

What is the difference between an insurance broker and an agent?

The main difference between car insurance agents and brokers is that agents work for insurance companies while brokers work for you. Brokers might charge a small fee. But, they offer you more options and can get you the best price on the insurance package you need.

Insurance agents have contracts to sell their insurance company’s policies to you. Insurance brokers, on the other hand, work for you. They get quotes from different insurance companies to bring you the best insurance value option.

When you work with an insurance agent, you’ll likely only get a limited list of options. An insurance broker will provide more deals and help you find the best one.

Why should you use a car insurance broker?

There are many benefits to using car insurance brokers. They deal with insurance companies and find you the right car insurance policy for the right price. Here are some reasons why you should use a car insurance broker:

  • They are on your side.
  • They have specialist expertise.
  • They have access to specialist insurers.
  • They can get you better quotes.
  • It’s easier for you.

How does all this help you, though? Let’s dive into the details.

They are on your side.

The British Insurance Brokers Association (BIBA) requires all insurance brokers to work in their customers best interest. It is their job to get the best insurance product for you. It’s a very personal service.

They’re your mediator with the insurance company and not the other way around. As we said above, your broker is working in your best interest and as such, they are putting your needs first.

They have specialist expertise.

Car insurance is a broad industry, and you might not be familiar with it. Whereas a car insurance broker knows all the trade secrets and can help you get the best deal for your car insurance.

They have access to specialist insurers.

Their access to specialist insurers means that they can contact a specialist insurer who will not directly work with the public. Some of them can provide niche insurance premiums for your car. This specialist insurance access includes cover for vehicles you’ve built or modified yourself, classic cars, and high-end performance cars.

They can get you better quotes.

Insurance brokers spend time working and building relationships with various insurance providers. They can usually ensure a better price for your insurance quote than you would get yourself.

It’s easier for you.

Apart from all the other benefits of getting insurance through a broker, convenience is a great perk. You don’t have to do much. Speak to your car insurance broker, and provide information. Then, they’ll do all the leg work.

Apart from sourcing and arranging your premium, they can also help you make your claims if it comes to it. Help in the claims process is a relief when dealing with an incident involving your car.

What is car insurance?

Car insurance protects your vehicle and covers you for any money you’d lose dealing with accidents, theft or damage. The type of policy you get matters. It affects what exactly you have covered by your car insurance.

You can choose the right car insurance policy with the help of an insurance broker. Or you can do this yourself by going on comparison websites.

How does car insurance work?

Once you have taken out a car insurance policy, you will be covered for a set period of time. If you end up needing to take out a claim, then you can either do this by contacting your insurance provider and providing your unique insurance reference number. Alternatively, if you’re working with an insurance broker, they’ll take it from there. Brokers can talk you through the process and make the claim on your behalf. Either way, you should be financially compensated if your claim is accepted.

What types of car insurance policies can a broker get you?

Simply put, there are three primary coverage levels for car insurance:

  • Comprehensive car insurance
  • Third-party car insurance
  • Third-party, fire, and theft car insurance

So let’s look at each in more detail.

Comprehensive car insurance

Comprehensive coverage is the whole package. Comprehensive car insurance gets you complete coverage for your car and yourself. It includes any damage to your vehicle, even if you’re at fault for a collision. It also covers any personal injuries you might suffer from an accident.

Comprehensive car insurance will include everything that the other levels do. For example, legal fees, theft, and natural damages, like floods and fires. If you’re responsible for paying for the other involved party and their vehicle, this insurance will cover that too.

It’s also helpful to note that a courtesy car is usually given to you if your motor vehicle is taken away for repairs. If a specialist can’t repair your car, you can get a new one in some cases.

Third-party car insurance

Third-party car insurance is often more affordable, but it covers less. As you would assume from the name, you and your vehicle aren’t insured, but a third party is.

Third-party insurance is the minimum level of car insurance you’re required to have in the UK. It’s in place so other drivers are covered while you’re driving. If you’re involved in a collision that is considered your fault, then you can be confident that the third party’s injuries and damage are covered by this insurance policy.

Third-party, fire, and theft car insurance

With third-party, fire, and theft car insurance you have all the benefits of third-party coverage, plus fire and theft coverage. If you’re involved in a collision, your insurance policy will cover the third party, their injuries, and their vehicle. However, it will not cover your own. As the name implies, fire and theft incidents are also covered with this level of insurance.

Are there any exceptions for car insurance?

Car insurance comes with its exclusions. Any insurance does. Here are some standard car insurance exceptions you should know about:

  • If you are hiring out your car. If your car gets damaged while you use it for monetary rewards, hire, or fare, your insurance will be void.
  • If you are participating in motorsports. If you race, get into a contest or use your car for adventure parks, your claim will get rejected in the case of an accident.
  • General wear and tear. Cars age, components deteriorate, and they fall apart. Your insurance won’t cover normal wear and tear.
  • If you are driving an overloaded car. Too many passengers and excessive weight will have your car excluded when it comes to making a claim.
  • If you are driving an unmaintained car. If your car is weathered, requires repairs, or needs new tyres, you shouldn’t drive it. Any damages caused by a car that isn’t in good condition won’t be covered.
  • If you are driving under the influence. Your claim won’t be accepted if you’re under the influence of alcohol or drugs, except for prescription medications.

Car insurance broker FAQ

We’ve put together a section for frequently asked questions to answer some of your queries.

How do car insurance brokers make their money?

It’s simple. Insurance brokers earn a commission based on the policies they manage to help you find. This commission is often, but not always, paid by you as part of your premium.

They don’t earn money from insurance companies. So they won’t actively try to sell you a specific policy, like in the case of insurance agents. Instead, you employ them to find you the best car insurance you need.

Why did two different insurance brokers give me different quotes for the same policy?

Have you had two different brokers give you completely different quotes for a policy? That’s a common situation. Insurance brokers and insurance providers form relationships with each other. Like in the real world, some are stronger than others.

The broker who offered you a better rate has a stronger relationship with the insurance company. Which means you’re in better hands.

So, if two insurance brokers give you different quotes, you’re free to go with the more affordable one and save money.

What information do I need to get a car insurance quote from a broker?

Your insurance broker will ask you for a few pieces of information to get you started.

These are:

  • What vehicle you drive and its value
  • Your details, like license, job title, and age
  • How often you use your car and what for
  • Your average yearly mileage
  • Any modifications made to your car
  • A list of your claims history

How can I help get a better price for my car insurance?

Even when you do go through an insurance broker, there are some tips you can follow to get yourself the best price for your car insurance.

  • Install a black box. A black box is beneficial if you’re a young driver or just inexperienced. It shows your driving patterns and proves you’re trustworthy.
  • Limit your yearly mileage. If you’re on the road less, you present less of a risk for claims. So, if you can show a low mileage, you’re more likely to get a low quote.
  • Add security to your car. Get alarms, cameras, and anything that deters thieves. Insurers prefer vehicles that are hard to vandalise or steal.
  • No Claims discounts. If you’ve not made any claims in the past, you’re more likely to get a lower quote.
  • Choose your car carefully. If your engine is quite large, you’re more likely to pay higher insurance. If you’ve not yet bought a car, getting an insurance quote before buying it can be a good idea.
  • Watch where you park. A car that’s left in sketchy places is less likely to get the best insurance price. If you park your car in a private garage or driveway, you could get a lower quote.