First-time Car Insurance - Broker or no?

[NicJLock]

Hey all,

So here's the situation:
I'm 25 and have settled into a job that I can see myself doing for the long haul. Pay isn't fantastic yet, but I've been there 6 months and can already see the potential for growth.

I'm looking to take over my car insurance. Currently a registered driver on my mom's profile.

I've gotten decent quotes, just under R700 a month on OutSurance with a R4500 excess. For my age I've heard a lot worse, so I was surprised. Other direct quotes were within about a R200 range of that.

My question is, is a broker worthwhile? Will they be able to offer me a more competitive quote? Is the extra that I'll end up paying worth the benefit of having someone deal with claims for you?

If you're pro-broker, any recommendations for brokers in Cape Town?

 

[6spdmanual]

Yes, I'd recommend a broker. They can help you find a good deal and if they don't come back with anything you like, there is no commitment to them. You don't owe them anything.

Note however that if you do take a quote from a broker, there will be a small broker fee added to your monthly premium, which would be about +-R70 if your premium is R700. Give them a shot.

I don't know of any Cape Town specific brokers, but I know a few with a national reach. Consider AON, Marsh or Indwe Risk Services. Try Indwe first because for me they are better at personal insurance than the others.

 

[NicJLock]

Definitely going to start looking into Indwe, thank you!

 

[Hemi300c]

Yes, I'd recommend a broker. They can help you find a good deal and if they don't come back with anything you like, there is no commitment to them. You don't owe them anything.

Note however that if you do take a quote from a broker, there will be a small broker fee added to your monthly premium, which would be about +-R70 if your premium is R700. Give them a shot.

I don't know of any Cape Town specific brokers, but I know a few with a national reach. Consider AON, Marsh or Indwe Risk Services. Try Indwe first because for me they are better at personal insurance than the others.

"Note however that if you do take a quote from a broker, there will be a small broker fee added to your monthly premium, which would be about +-R70 if your premium is R700. Give them a shot."

Not all brokers charge fees, in fact they are slowly but surely becoming illegal and the client has to agree to the fee or can waive it.

@OP yes get a broker and work through one. These direct insurer's are not to be trusted and rather go with a well established company.

In general the additional punitive excesses are in your case basically verby
Under 25
Drivers licence less than 2yrs

Get a claims experience from your mom's policy if good and utilise that to get a better claim free group or no claim bonus.

 

[123Eish]

I was in the exact same situation as you in February this year. Except I am 24. I asked my mother to give the insurance company a call and tell them that she was intending on canceling the insurance as I would be taking my own cover the following month.

I told her to ask the salesman if they would consider giving me cover at the same rate that she was paying.

They called me, did their assessment and offered me the same rate that she was paying only on my own policy.

The rate was fair and inline with my cheapest quote from another less reputable company. I accepted it.

 

[Venomous]

I was in the exact same situation as you in February this year. Except I am 24. I asked my mother to give the insurance company a call and tell them that she was intending on canceling the insurance as I would be taking my own cover the following month.

I told her to ask the salesman if they would consider giving me cover at the same rate that she was paying.

They called me, did their assessment and offered me the same rate that she was paying only on my own policy.

The rate was fair and inline with my cheapest quote from another less reputable company. I accepted it.

Call them again a day or so after your 25th bday. And if your DL is not older than 2 by then call them again after it is older than 2.

 

[jman]

Try naked.insure they have an app. No call centres, and worked out pretty cheap for me. They are underwritten by Hollard. They also have cool features like pausing your cover from full to theft when you aren't using the car for a day or more, and you're refunded the difference at the end of the month

 

[a88277]

Yes, I'd recommend a broker. They can help you find a good deal and if they don't come back with anything you like, there is no commitment to them. You don't owe them anything.

Note however that if you do take a quote from a broker, there will be a small broker fee added to your monthly premium, which would be about +-R70 if your premium is R700. Give them a shot.

I don't know of any Cape Town specific brokers, but I know a few with a national reach. Consider AON, Marsh or Indwe Risk Services. Try Indwe first because for me they are better at personal insurance than the others.

Broker fees must be aggreed apon in writing and the reason they are charged. The broker gets commision on the premium. This is for the service they should deliver, so for what other reason will a fee be raised. Call Efficient Insure. Check their website for no.

 

[HeftyCrab]

In my experience they are next to useless, so I dropped my broker and just went direct, as they were just like a middleman passing along info. Could be different with a better broker though.

 

[Merlin]

YES.

Brokers are a collective, legal force for a few Rands per month.

In my family's case, we hold a fair amount of sway with the brokerage as we have a sizeable array of property and vehicular insurance. We've built up a very good, personal rapport with our broker.

On two occasions in the past few years I've had two insurance claims which went hostile. Had I been fighting solo, my chances of a quick, easy win would've been abysmal.

Brokers are tantamount to lawyers, and should be used as such. They do the work for you. The small fee you pay every month will pay itself back a thousandfold WHEN you have a problem.

In my last claim (someone drove into me), despite a mountain of evidence, their insurer tried palming me off and failed to follow due process in doing so. It became increasingly hostile and dragged on for a long time. I called on our broker who represents the brokerage as a whole. Would you fight solo or have an entire brokerage fighting on your behalf? It's a no-brainer.

As with everything, there are good and bad brokers and good and and brokerages.

Your broker needn't be in the same locale as you.

I recommend Fargo Brokers. We've had success with PSG too.