D'INSURANCE brokers

victor1

Hey,
How come brokers can get much cheaper quotes(ya know they may be on some backhanders from some), i got a renewal quote with quinn and decided to shop about, got hibernian for a hundred bucks or so cheaper online, then decided to use a broker a friend recommended, he was able to get me same policy with again over another hundred quid cheaper again? I realise they can get new businness a/c's discounts, but am just curious, when i filled out initial form, there was default settings, e.g how many years driving ect(like 8 years), when she ammended after giving quote and i initialed after the fact. If brokers are cheaper, how come everyone does not use em?Some agencies and quotes are just ridiculous. Also for quinn on the renewal of my third year they sent me out a quote, i decided to go online and put in all same details just a different name, i.e this would be a completely new customer and there were 125 euro cheaper, i.e i was with them for 2 years ncb and a new person could join for 125 cheaper starting off!!!!, i rang and gave out stink and they were using the usual , i then told them to stick it! - IT defo pays to shop about!

rebel.ranter

Brokers agree to "buy" a load of policies from an insurance company for a certain type of profile or range of profiles. They get a bulk discount & pass on some of that discount to you the customer.

Also the type of policy you get from the broker & the policy you get directly from the insurance company may not be the same. The excess you might be higher, there may be no windscreen cover, no breakdown assist. The legal fees cover may be more limited too. There may be other differences like step back bonus in the case of a claim, etc.

Brokers may also have lower overheads.

daveharnett

victor1 wrote: »

Hey,
How come brokers can get much cheaper quotes(ya know they may be on some backhanders from some), i got a renewal quote with quinn and decided to shop about, got hibernian for a hundred bucks or so cheaper online, then decided to use a broker a friend recommended, he was able to get me same policy with again over another hundred quid cheaper again?

The insurers offer a discount to brokers, so that they can match the online prices and still make their profit margin. Many brokers will reduce their 'take' in order to offer you a better price than the websites.

My impression is that underwriting companies 'behind the curtain' are so big that their systems are hugely complex and inflexible. The brokers and insurers are pretty much at their mercy, they can only do what the computer tells them.

victor1

am getting flash back from little britain...."computer says NO":) - Its just scandalous how they can differ in terms of price/conditions!

rebel.ranter

It pretty much has gotten to that stage now. Ironically the drive to be able to provide on-line quotes has probably accelerated the "Computer Says No" scenario. I think this affects most industries though, the "bargaining for cash deal" has all but been eliminated.
I remember years ago a story about a broker issuing their own insurance discs & taking fees but not actually registering the policies with the insurance company underwriting the policies. AFAIK there was a big court case about it in the 1980's.