Important
Notice
You
may have seen advertisements for 'direct' telephone and Internet only
insurance which claim to reduce the cost of insurance by "cutting
out the middle man", i.e. your Insurance Broker.
As
with every thing else, you get what you pay for and, there is evidence,
collected by the Institute of Insurance
Brokers that what you get by not using an Insurance Broker
are claims settlements that are up to 30% less than settlements
negotiated by Insurance Brokers. That could be as much as £1,500
on a car valued at £5,000.
Furthermore,
we understand that these 'direct' Insurers are interpreting the wording
of the polices they issue very strictly and non-disclosure, no matter
how minor or accidental are leading to immediate cancellation of
the policy.
This
can be very awkward especially as the non-disclosure is often discovered
following an accident, which leaves the vehicle in question uninsured
and the policyholder facing a large bill.
As
Insurance Brokers, we cannot condone willful non-disclosure but in the
case of accidental incidents, we are able to negotiate, often
very successfully, with the insurer in question, to insure continuance
of cover and settlement of the claim.
Furthermore,
a recent survey has shown that around 7 out of 10 premiums obtained
from these 'direct' Insurers are subsequently increase when the policy
is issued.
It
is clear that the 'direct' Insurer is cutting its costs by more than
"cutting out the middleman" and may be at the expense
of you as well as us.
