5 Things To Avoid When Dealing With Insurance Brokers

things never do dealing with insurance broker

Most people are still clueless when it comes to dealing with insurance brokers. They often deal with insurance brokers without even knowing the true nature and essence of the profession. Insurance brokers help people in finding good insurance policies. They deserve to be treated fairly and honestly. To help you build a good professional relationship with your insurance broker, you should take note of the following things that you should never do when you’re dealing with them: 

what not to do with insurance agent

1. Don’t Underestimate The Role Of Your Broker 

Your insurance broker is not there to simply look for an insurance policy with the cheapest price. 

It is a fact that people work with insurance brokers to ensure that they get the best possible policy at a low price. The cheaper the policy, the better. This frame of mind becomes problematic when a person deals with an insurance broker with that alone in mind. 

We have to be realistic that money is of prime importance but it should never be the be-all and end-all of your work with your insurance broker. Don’t forget that you’re asking for their help because you want to be fully secured and protected. They are experts in the field and have access to hundreds of policies that you can choose from. This is why you are choosing to work with them. It will streamline and simplify your search for the best possible insurance policy. Blurting out in the open that you are just working with them to look for the cheapest possible policy undermines their work and expertise. Good insurance protection and security come at a price. 

If you are just after spending little, then you might as well look for an insurance policy on your own and choose the one with the cheapest price. But such is not the case. That is even the reason why you’re working with an insurance broker in the first place. When dealing with one, keep a balanced mindset and stay true to what is truly important. 

2. Don’t Pit Brokers Against Each Other 

Insurance brokers don’t have to compete with each other. 

It’s a common practice for most people to connect with different insurers in the hope of choosing one that can give them the cheapest possible insurance policy. You can do this but you’d only end up short-changing yourself. A cheap insurance policy does not equate to a good insurance policy. Choosing an insurance broker just because he or she presented a cheaper policy will end up biting you back in the long run. You should never base your decision based on pricing alone. You should base it on a policy’s capacity to fully protect you and secure you from all possible liabilities and damages in the future. A cheaply-priced insurance policy cannot promise to do that. Hence, you should never base your decision on policy price alone. This is why it’s ultimately a waste of time to have two insurance brokers compete against each other in the hopes of getting a cheaply priced policy when pricing should never be the sole basis of your decision. This wastes their time and your time. You need to know that insurance brokers only get paid once for work that they will be doing for 12 months. Having them compete with each other also divides the market. It is not an act made in good faith as you would have them work for you without the promise of work. 

3. Don’t Delay Your Choice Too Much 

It’s best for you to think things through at all times. But you should never overdo it at the expense of your insurance protection and security. You should be swift in choosing which insurance broker you want to work with. The sooner your decision, the sooner they can act on behalf of your concerns. Once an insurance broker knows that you’re fully relying on his or her good work, he or she can then immediately connect and negotiate with different insurers. The sooner your broker can connect with different insurers, the sooner he or she will be able to give you the best possible policy options for your needs. You don’t need to look for the number 1 insurance broker in Perth, you simply need to look for one that can understand your needs and effectively negotiate on your behalf. 

4. Don’t Withhold Important Business Information 

Never, under any circumstance, withhold important information from your insurance broker. You should be fully transparent and honest at all times. You should give your broker all the necessary information that he or she needs in order for him or her to look for the best possible insurance policy for you. It will do you no good if you will hide past incidents that you think will affect your possible policies. The more honest you are, the more equipped your insurance broker will be in looking for the best protection and security for you. 

dealing with insurance brokers

5. Don’t Be Timid In Asking Questions

Your insurance broker is there to help you. It will do you no good if you will be timid and too shy to ask questions whenever you don’t understand anything. Your insurance broker will be more than happy to explain every single thing to you. Never think twice if there are provisions that bother you and confuse you. You should fully understand your insurance policy as you need to clearly know the extent of your protection from damages and liability. Be proactive. Know that your insurance broker is there to help you every step of the way.

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