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Cutting out the middle man

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  • 14-04-2012 7:04pm
    #1
    Kungfu
    Closed Accounts Posts: 113 ✭✭


    Hi

    When insuring a motorcycle or car can a person buy insurance directly from an insurance company or can you only get insurance by going thru a broker? Can you cut out the broker (the middle man)? Actually the same question applies to home/life insurance as well. PS If you can cut out the broker wouldn't you then get your policy for less? Obviosly the broker is making money on the deal, so if the broker is cut out then you should have less to pay.


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    #2
    ravima
    Registered Users Posts: 848 ✭✭✭ravima


    it could actually be cheaper to go through a broker as some have super deals with insurers regarding commissions and extra commissions depending on how much business they place. You will not get it cheaper direct, the best you could hope would be that it would cost the same.

    broker can be handy if you have a query


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    #3
    cookie1977
    Registered Users Posts: 6,794 ✭✭✭cookie1977


    Kungfu wrote: »
    Hi

    When insuring a motorcycle or car can a person buy insurance directly from an insurance company or can you only get insurance by going thru a broker? Can you cut out the broker (the middle man)? Actually the same question applies to home/life insurance as well. PS If you can cut out the broker wouldn't you then get your policy for less? Obviosly the broker is making money on the deal, so if the broker is cut out then you should have less to pay.

    Of course you can call up many companies directly and ask for quotes. Whether you get your policy for less depends on the broker and the company you're directly dealing with.
    Some companies dont deal with brokers. Sometimes brokers can get you a better deal.


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    #4
    peteb2
    Registered Users Posts: 1,813 ✭✭✭peteb2


    ironically enough there are only 3 providers of motor bike insurance and none are accessible through other brokers!
    1. Aon Bikecare - Underwritten by AXA
    2. Carole Nash
    3. Quinn / Liberty insurance.


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    #5
    [Deleted User]
    Posts: 8,016 ✭✭✭ [Deleted User]


    peteb2 wrote: »
    ironically enough there are only 3 providers of motor bike insurance and none are accessible through other brokers!
    1. Aon Bikecare - Underwritten by AXA
    2. Carole Nash
    3. Quinn / Liberty insurance.

    Adelaide is another one.

    Sometimes going direct to an insurance company can be better normally when the risk isn't standard(Meaning a very old bike, modified bike/car, bad driving history etc) it's your best bet at getting better flexibility from the insurer, but if you're looking for the best price for a standard risk a broker is normally your best bet as they will compare the market for you in most instances to get the best price.


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    #6
    amen
    Registered Users Posts: 2,781 ✭✭✭amen


    You will not get it cheaper direct, the best you could hope would be that it would cost the same
    but if you're looking for the best price for a standard risk a broker is normally your best bet as they will compare the market for you in most instances to get the best price.

    but what you are all not mentioning is that in all cases the broker is making money. The broker is doing this
    A: Charging an extra amount on top of the insurance quote and including in the amount he then quotes to the customer
    B: Getting paid a commission on the policy sold to the customer. The broker may pick the company with the higher commission which may not be the cheapest price for the customer
    C: A combination of the above.
    You will not get it cheaper direct, the best you could hope would be that it would cost the same

    If the insurance company sells direct then most likely you will get it cheaper than the broker. The price that the insurance company quotes to the broker is includes the profit for the insurance company.
    broker as some have super deals with insurers regarding commissions
    and extra commissions
    Yes. Normally the more business they sell the higher the commission rate.


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    #7
    Kungfu
    Closed Accounts Posts: 113 ✭✭Kungfu


    Thamks.


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    #8
    MrPicante
    Registered Users Posts: 72 ✭✭MrPicante


    slightly off topic but I was previously insured with Carol Nash (not directly as they are a broker) for my 1st year motor cycle insurance in Ireland. I decided not to renew with them but have left my bike off the road for a couple of months. 1) do I need to get some documentation to say the bike is off the road b) is carole nash supposed to send me out my no claims documentation?
    Is this something they make me chase up?


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    #9
    [Deleted User]
    Posts: 8,016 ✭✭✭ [Deleted User]


    MrPicante wrote: »
    slightly off topic but I was previously insured with Carol Nash (not directly as they are a broker) for my 1st year motor cycle insurance in Ireland. I decided not to renew with them but have left my bike off the road for a couple of months. 1) do I need to get some documentation to say the bike is off the road b) is carole nash supposed to send me out my no claims documentation?
    Is this something they make me chase up?

    They should have sent you the No Claims Bonus at your renewal. If not call them like car NCBs they expire after two years.


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    #10
    juan.kerr
    Closed Accounts Posts: 2,766 ✭✭✭juan.kerr


    Best to get quote through a broker and try a few insurers directly.

    A broker is there to make money, sometimes they will get you the best quote (cost and cover) sometimes they won't.

    I had my insurance through AA for the last few years, this year the quote went up by EUR100.

    I got a few quotes online for either identical cover or better cover (e.g. lower excess). The best quote was over EUR200 cheaper than the AA quote.

    When I queried the original quote AA said they had other cheaper quotes but only sent details of the one with the 'best' cover. I do think it was poor show that they did this, perhaps unethical but legal.


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    #11
    Cork Boy
    Registered Users Posts: 626 ✭✭✭Cork Boy


    amen wrote: »
    but what you are all not mentioning is that in all cases the broker is making money.

    And...?

    A: Charging an extra amount on top of the insurance quote and including in the amount he then quotes to the customer

    The Broker Fee must be declared prior to policy inception and a seperate receipt issued for same.

    B: Getting paid a commission on the policy sold to the customer. The broker may pick the company with the higher commission which may not be the cheapest price for the customer

    Highly illegal, all policies incepted must have a copy of the top ten quotes along with it and they have to justify to you in a statement of suitability or reasons why statement as to why they recommended your particular policy

    C: A combination of the above.



    If the insurance company sells direct then most likely you will get it cheaper than the broker. The price that the insurance company quotes to the broker is includes the profit for the insurance company.

    Yes but it also includes money saved in not administering the policy and 'bulk buy' discounts

    Yes. Normally the more business they sell the higher the commission rate.

    True


    juan.kerr wrote: »

    When I queried the original quote AA said they had other cheaper quotes but only sent details of the one with the 'best' cover. I do think it was poor show that they did this, perhaps unethical but legal.

    The broker has to issue a Statement of Suitability or Reasons Why Statement regarding the product they have offered. If that mentioned best price you have grounds to seriously land them in it. Then again, there are shoddy policies out there that aren't suitable to a serious asset like a 2006+ Audi but may be perfectly fine for a 98 micra, hence the Statement of Suitability

    .


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