Fair pricing and why you should use a good insurance broker

You may think you know your home or car insurance needs better than anyone, but there are many things to consider when it comes to policy details and prices.

These last two years have shown us that we never fully know what is around the corner – and this is where insurance comes in. Only by preparing for the unexpected can you be fully protected.

But uncertainty amongst consumers means they can be easily preyed upon. The Financial Conduct Authority (FCA) recently found that some home and motor insurance providers were not operating with complete clarity.¹ In a practice known as ‘price-walking’, many firms deliberately charged existing customers more to subsidise cheaper rates for new customers. Customers were ‘rewarded’ for their loyalty by paying more for their policies, even if their circumstances had remained the same. At Marsh Commercial we have always offered our customers the best price we can access and with the new FCA rules coming into effect from January 2022², we hope you can also take advantage of using a professional insurance broker to ensure you obtain a better deal.

Here are our top five reasons why you should use an insurance broker:

1. Insurance can be complicated

Lots of policies look like they overlap at first glance. These are not details that you are always likely to know, but a good broker will, and can help you understand all the complexities involved in home and car insurance and simplify it for you.

2. Brokers are impartial

This is your home and your personal possessions. It’s difficult to feel objective. A broker is there to be objective; so they can simply look at the facts, offer you the best possible advice and make sure there are no overlaps in your cover so that you only pay once for what you need.

3. Well connected

A good broker is privy to a wealth of information; they’ll be connected to the right insurance providers and know the range of options available to you. They will give you the right advice, and go out of their way to try to save you money and save you time. Searching through all the options yourself could take a lot of time, and still find you don’t have up to date information at your disposal. Using a professional broker will cover all this off.

4. Specialist expertise

Brokers operate in specific sectors – agriculture, technology, construction, personal lines etc. This means that your broker will not only be well connected with the right insurance companies, but they will also be entirely up to date on any new laws and legislations as well as any market trends in your area. This allows them to provide you with the right technical and professional advice, and ensure that you adapt your policies for maximum protection in the most cost-effective way.

5. Claims support

If the unfortunate situation arises that you find yourself having to make a claim, your broker will support you through the process.

Many of us have started working from home over the last 12 months. Our cars may be used a lot less. Things have changed and will likely continue to, which is why a good personal lines insurance broker can be helpful. Stay informed, benefit from the best advice and get a fair price.

You can find more information about our home and car insurance cover in our At A Glance document, or talk to one of our specialists  for more information.

^{Sources;
1. https://www.fca.org.uk/publication/policy/ps21-5.pdf
2. https://www.fca.org.uk/news/press-releases/fca-confirms-measures-protect-customers-loyalty-penalty-home-motor-insurance-markets}