Many consumers are under the impression that buying insurance directly is more beneficial but is this correct?
Let’s take a look at what details are most important to consumers when making the decision to purchase insurance. Based on our experience, the following factors greatly contribute to one’s insurance buying process.
1. Dollar Amount
2. Flexibility
3. Peace of mind
4. Security of personal information
Now let’s go through each of those items and have a Barrie Insurance Broker like Will Marshall weigh in.
1. Dollar Amount
While many consumers believe that cutting out the middle man and directly purchasing insurance is cheaper, this practice holds many long term costs.
Direct writers are able to offer lower premiums because often their auto underwriting rules are strict, reducing your driving record to a zero rather than a five star like it would in a broker office. Direct writers also treat every person the same so if you do not qualify they will cancel your insurance at renewal and leave you to find insurance from another carrier.
While auto insurance is regulated with the Financial Services Commission of Ontario (FSCO), home insurance is not. No two homeowner policies are created equal. Because brokers have relationships with their customers they demand what is best for the customer. Direct writers will sell a homeowner policy and not offer the various coverage options; the best example is water damage, now exceeding fire as the leading claims cost water damage or sewer backup as it is also known is being drawn back. Where a broker will sell a policy to include sewer backup limits in excess of $100,000 often more, direct writers offer cheaper policies that include $10,000 – $50,000 of coverage. These limits are simply not sufficient to truly indemnify you in the event of a catastrophic loss.
2. Flexibility
Once you are cancelled with a direct writer you often have no relationships to call upon to find insurance. Calling around looking for quotes can be a painful and time consuming experience often pointing you back to the broker channel. Brokers on the other hand have many insurance carriers that are able to offer coverage regardless of driving record. This can elevate a great deal of stress. Because an insurance broker like Will Marshall in Barrie works for you and not one specific company, we do not have ties to any single company in particular. We will ultimately search several insurance companies to find the best offer to meet your individual needs. Furthermore, Will Marshall in Barrie, is a member of RIBO (Registered Insurance Brokers of Ontario), in which we are obligated to source out the best coverage available under the Code of Ethics.
3. Peace of mind that Everything is Covered
Insurance Brokers are knowledgeable and professionals in their field. Brokers have experience with a variety of products and services and are qualified to suggest policies that will most benefit you. In addition to expert advice, we can successfully guide you through a claim process, which can otherwise be a stressful time. Brokers tend to have several ties to bigger insurance companies, which in turn increases the amount of personalized support that’s obtainable, if needed. In addition, by law, every insurance broker needs to be bonded, implying that you are protected if it’s discovered you are the victim of dishonest behavior.
4. Security of Personal Information
Ontario Insurance Brokers are licensed through the Registered Insurance Brokers of Ontario (RIBO). Licensing dictates that Brokers must adhere to all RIBO regulations outlined under ethical conduct, professional ability and insurance related financial duties. At the end of the day, these policies are in place to protect you, the consumer. Brokers are mandated by their Code of Ethics to also maintain your privacy and keep all client discussions and information entirely private. Remember also that banks are going to treat you as a credit risk; no different than a mortgage. While Direct writers put themselves in front of the consumer, a broker will always put the customer first.
Trust Will Marshall as your independent Insurance Broker, and let us do the work for you! Will Marshall Insurance Brokers in Barrie and Orillia is proud to be family owned and operated; as a customer you become part of our family.