We have on the Car Insurance Blog at carinsurance.arrivealive.co.za discussed the importance of comparing car insurance quotes. We have even provided some advice and suggestions on how to approach this important method of finding the correct product to meet your needs. But why are so many not comparing car insurance quotes? We have decided to share a few thoughts on car insurance comparison – and why this is neglected too often!
• I don’t think it is necessary – I am insured
The car insurance industry has experienced significant changes over the past 10 years. The internet has made possible new business models and has increased competition in the industry. Direct insurers and insurance aggregators/ comparison websites have provided competition to the traditional business models, benefitting vehicle owners both on product range and price.
Your car insurance premium should recognize these changes. By not comparing car insurance quotes – and communicating with your existing insurer – you might be missing out on significant savings.
• My broker knows best – I trust my broker with my car insurance
This might well be true – but even if you have a very effective and professional broker, you need to ask whether he is comparing car insurance quotes on your behalf. Your broker might have a long standing relationship with a specific insurer – and only market the products of that car insurance provider.
Ask your broker with which car insurance provider he has contracts with – and ask him to provide you with some comparative quotes.
Should you only rely on the advice of your broker – you will be missing out on offerings from the direct insurers who are cutting out the broker or “man in the middle” in an effort to reduce the costs of car insurance. Reducing or cutting out broker commissions could provide huge savings.
• I am afraid to do the car insurance comparison myself
Many might fear not being able to compare car insurance quotes. We do not all have the same level of financial expertise and might fear being lead on the wrong path. It might be worthwhile to test the car insurance aggregators or comparison websites. These are designed to allow for easy and swift comparison of car insurance quotes for basic needs.
You should be able to do so with ease. It is important to recognize that you can still use a financial adviser to assist in comparing these quotes. Rather pay him a fee for his professional services in assisting with car insurance quotes – and then save on the monthly broker fees and reduced premiums gained!
• I am not computer literate / Not comfortable with the internet
Many older vehicle owners might not be as comfortable doing business online as our younger generation. Car Insurers and especially direct insurers have however made the process of acquiring and comparing car insurance very simple.
You need not fear the internet – and even if you are cautious of technology – you can ask a broker or financial advisor to assist in using the internet. The internet could be used not only to compare prices – but also to do find and read more information about car insurers and their products.
• I am loyal to my broker
Many people have a blind loyalty towards their broker. They would stay with that broker or might even have “inherited” them from their parents. They will tend to stay with that broker come hell or high water – and might believe that raising the request for comparative quotes might be regarded as a lack of loyalty.
Times have changed however – and there is much less loyalty towards brands. If your broker is not comparing car insurance quotes or not keeping you updated on new products and possible savings – your loyalty might be misplaced.
There is nothing wrong with loyalty – but the professional broker or advisor will respect your desire to receive more information and to compare insurance quotes in the search for the correct product to meet your needs!
• I do not know how to compare car insurance quotes
There is no shame in admitting that you are not comfortable with the “How to?” of comparing car insurance quotes. This recognizes that you are someone not jumping into the process of making financial decisions. On the Car Insurance blog we will guide you towards making the correct comparisons. With the correct approach you will be able to find either confirmation that you are adequately insured – or will make big strides towards financial security and saving on expensive car insurance premiums.
• I have recently compared my car insurance
This is the best answer to the above question. We would advise that this comparison be made every year – either by yourself –or your broker. There is increased competition in the car insurance market, and “new generation” products are developed every year. Keep in mind that there are many other variables on the side of the vehicle owner as well, such as changes in occupation, marital status or even changes pertaining to your vehicle.
Compare your car insurance yearly to ensure that you have the best car insurance for your specific vehicle!!
During recent years there has been a significant swift in the way South Africans acquire car and other insurance cover! When I joined the financial services sector in 1999, the direct insurer was still a very young role player in the short term insurance industry. Most people purchased insurance through brokers/ financial advisors and these persons were mostly the same people to assist them with life insurance, investment policies etc.
I believe that the dedicated and well –qualified financial advisor is not at risk – the financial advisor at risk will be the opportunist who is not willing to specialize and position himself as someone with “specialized knowledge”. The direct insurers are well positioned to satisfy the needs of the individual and small to mid-size business and can provide affordable premiums. The client with a rather complex portfolio or the large company with a fleet of vehicles would still be searching for the short term insurance advisor. This person would be the experienced, qualified and most probably independent advisor who has built a strong reputation in his field.