Car Insurance - Direct vs. Broker:-

[Waaib]

What value to brokers add to the insurance chain? I've been trying to figure out what they do apart from sell you the policy.

I've heard people say things like 'Direct is fine until you try to claim!' What does this mean? Does having a broker influence the claim in any way?

I'm currently with M&F and Outsurance is R600 cheaper per month for the same cover so just wondering what value my broker ads to be R600 per month more expensive.

 

[Smurfatefrog]

Brokers are generally a lot easier to deal with, they sort out all the hassles with the insurers and i would think they get seen to before individuals. And you usually would just deal with 1 or 2 people which makes it a lot easier

Doesnt your broker show his fee separately? On my policy it splits the insurance & the broker fees

 

[supersunbird]

Brokers charge a small monthly fee. Its not your broker thats expensive, its the insurance provider. My Santam cover WITH the small broker fee is cheaper than Myway, Dialdirect, Outsurance and man, was Budgets quote expensive. So get your broker to shop around, and if he won't get a new broker.

They make my life easier. I just pop of a e-mail to mine, she arranges for cover to be adjusted (like market value of vehicle has dropped) or whatever with Santam and thats it. Insurance is not only about claiming but your daily admin over it, they know all the steps that need to be taken and whatnot.

 

[Waaib]

mmm .... R7200 a year to 'cut out hassles' seems a bit expensive. Thanks for the advice. I'll shop around. As far as I know my guy only deals with M&F.

 

[Fazda]

After fighting with brokers for many of my 66 cars, I finally switched to Outsurance about 7 years ago...what a pleasure!! NO extra costs, money back every couple of years, and instant payouts when I've needed them. They are also one of the few companies that doesn't screw you on excess.

FTR, my last broker was the wife of one of my best friends, and she still charged me through the nose when compared with Outsurance!!

 

[supersunbird]

Ja, shop around and maybe get a new broker, or lay down the line for yours. Are you in Pretoria perhaps?

 

[rorz0r]

When you go "direct" you're going through a broker anyway. The broker just works for the insurance company. Obviously though you calling the insurance place when you need to claim and not your broker. I think the broker would try a bit harder and fight for you so that they don't look bad when the company doesn't pay out.

I'm also with outsurance because they beat any broker out there and every other company on price.

 

[xrapidx]

Insurance companies like Outsurance, Dial Direct, Budget, etc - go out of their way to get out of a claim - they also go out of their way to find the cheapest repair shop.

Both Outsurance and Dial Direct stuffed up my cars by sending them to a cheap body shops.

With a broker, all I had to do was take my car to three panel beaters, get quotes, and then take it to the one of my choice.

 

[andres101]

I prefer dealing with my broker. I love the fact that I can submit my claim online! If I need anything on my policy changed, I just email them!
They also go the extra mile when the time comes to claim. They have more negotiating power than you do.

Doesnt your broker show his fee separately? On my policy it splits the insurance & the broker fees

Mine does. It is roughly 10% of my premium.

 

[Waaib]

They have more negotiating power than you do.

How can this be true? A contract is a contract and the insurers pay according to terms and conditions. What's the point of insurance if claims are negotiated?

 

[Fazda]

Insurance companies like Outsurance, Dial Direct, Budget, etc - go out of their way to get out of a claim - they also go out of their way to find the cheapest repair shop.

Both Outsurance and Dial Direct stuffed up my cars by sending them to a cheap body shops.

With a broker, all I had to do was take my car to three panel beaters, get quotes, and then take it to the one of my choice.

Not in my case. I insisted on going to the Panel Beater of my choice and Outsurance didn't hassle at all!

Just a question, why should you pay 10% to some idiot when you can pick up the phone, dial a toll free number and do it yourself!!

 

[xrapidx]

Not in my case. I insisted on going to the Panel Beater of my choice and Outsurance didn't hassle at all!

Just a question, why should you pay 10% to some idiot when you can pick up the phone, dial a toll free number and do it yourself!!

Which idiot? My broker is good - a bad broker is your own fault, you chose him?

If you're not happy, find a new broker.

My broker is cheaper than any of the above companies - they ALL quoted me a MINIMUM of R1,700 for my S2000 - with my broker, both my cars, house, all risk, etc - is R1,800 - the S2000 is R750.

 

[Fazda]

Which idiot? My broker is good - a bad broker is your own fault, you chose him?

If you're not happy, find a new broker.

My broker is cheaper than any of the above companies - they ALL quoted me a MINIMUM of R1,700 for my S2000 - with my broker, both my cars, house, all risk, etc - is R1,800 - the S2000 is R750.

You misunderstood me, I don't use a broker, I do it myself through Outsurance, and R375 for a 2007 Yaris Sedan with 10k mags on it is fine by me!

 

[xrapidx]

You misunderstood me, I don't use a broker, I do it myself through Outsurance, and R375 for a 2007 Yaris Sedan with 10k mags on it is fine by me!

I didn't misunderstand you - I'm saying if you had a bad experience with a broker, its you're own fault - you chose your broker.

Out of interest, my girlfriends Yaris would have cost me R156 exactly (just checked on the quote) - she had a 2007 Hatch.

 

[Fazda]

I didn't misunderstand you - I'm saying if you had a bad experience with a broker, its you're own fault - you chose your broker.

Out of interest, my girlfriends Yaris would have cost me R156 exactly (just checked on the quote) - she had a 2007 Hatch.

Great, I can understand that too, as it is linked to a large insurance...try getting that price if that is the only thing you are insuring. Not arguing, just making something very clear before everyone who reads this thinks that they will get that sort of insurance price on a one off!

BTW, and your insurance may well be the same, do you pay a fixed excess, or a percentage on the price of the car? Many deals sound great until you suddenly find that you are having to fork out something like 20% of the value of the car in excess on a claim, depending on how much of the fine print you read. I pay 2k end of story, even if my car is written off...best to check the tiny writing

 

[andres101]

How can this be true? A contract is a contract and the insurers pay according to terms and conditions. What's the point of insurance if claims are negotiated?

Say for instance your tyres have less than the legal amount of tread and someone drives into the back of you while you are stationary. Insurance companies all have the clause that states they do not have to cover the accident if your car is not roadworthy, so they might not pay the claim.

If you have a good broker, they can negotiate with the insurance company. Good luck doing that with a call centre agent.

The above is perhaps not the best example as the insurance ombudsman would probably agree with you and order them to pay. But really, close family of mine were involved in an incident that no insurance company would ever pay for, but the broker managed to convince the insurance company to pay the claim.

Just a question, why should you pay 10% to some idiot when you can pick up the phone, dial a toll free number and do it yourself!!

At the time I took out the insurance I was younger than 25, had no insurance record and was driving a 325i. According to the insurance companies, this was a "performance vehicle" and the cheapest quote I got was R2500.

My broker on the other hand negotiated a discount on my premiums, while I maintained my accident-free record. The monthly premium was considerably less than R2500. Even after my first accident my premiums were still much cheaper.

 

[xrapidx]

Great, I can understand that too, as it is linked to a large insurance...try getting that price if that is the only thing you are insuring. Not arguing, just making something very clear before everyone who reads this thinks that they will get that sort of insurance price on a one off!

BTW, and your insurance may well be the same, do you pay a fixed excess, or a percentage on the price of the car? Many deals sound great until you suddenly find that you are having to fork out something like 20% of the value of the car in excess on a claim, depending on how much of the fine print you read. I pay 2k end of story, even if my car is written off...best to check the tiny writing

I pay R1500 - and I double check EVERYTHING - the only item I had to query was the S2000, which was 10% due to it not having an alarm - but fitting a tracker removed the 10%.

 

[Fazda]

I pay R1500 - and I double check EVERYTHING - the only item I had to query was the S2000, which was 10% due to it not having an alarm - but fitting a tracker removed the 10%.

I have no problem with that at all, all I AM saying is that you would not get that rate on a one off basis. What your girlfriend is paying on her Yaris is many hundreds of rands less than what she would pay if her insurance was not linked to household, plus a couple of cars....simple!

 

[Fazda]

Say for instance your tyres have less than the legal amount of tread and someone drives into the back of you while you are stationary. Insurance companies all have the clause that states they do not have to cover the accident if your car is not roadworthy, so they might not pay the claim.

If you have a good broker, they can negotiate with the insurance company. Good luck doing that with a call centre agent.

The above is perhaps not the best example as the insurance ombudsman would probably agree with you and order them to pay. But really, close family of mine were involved in an incident that no insurance company would ever pay for, but the broker managed to convince the insurance company to pay the claim.


At the time I took out the insurance I was younger than 25, had no insurance record and was driving a 325i. According to the insurance companies, this was a "performance vehicle" and the cheapest quote I got was R2500.

My broker on the other hand negotiated a discount on my premiums, while I maintained my accident-free record. The monthly premium was considerably less than R2500. Even after my first accident my premiums were still much cheaper.

Have you ever considered that your broker might have "swayed" things slightly???

I worked for a broker in London, and I actually got insurance for a 23 year old driving a Ferarri...don't ask me how...I intend watching SA screw up the World Cup

 

[xrapidx]

I have no problem with that at all, all I AM saying is that you would not get that rate on a one off basis. What your girlfriend is paying on her Yaris is many hundreds of rands less than what she would pay if her insurance was not linked to household, plus a couple of cars....simple!

Two cars (yaris sold) and household - not exactly much - most people would be insuring one car and house hold.

The same insurance would have cost well over R3,000 with Dial Direct, Outsurance, Budget, etc....