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Thread: DIRECT OR BROKER INSURANCE?

  1. #1
    Email problem Phil Cooper's Avatar
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    DIRECT OR BROKER INSURANCE?

    When looking at complaints figures in the 2012 OMBUD FOR SHORT TERM INSURANCE report it is clear that broker-originated business generated the least claims to the Ombudsman for Short-term Insurance, those originating from Banks second most complaints and direct insurance business generated most complaints.

    The real value of using a broker lies in the fact that clients who do business via a broker are probably most informed, their expectations are better managed and there is better facilitation and representation during the claims stage.

    Brokers and insurers should market this aspect to improve the image of the broker fraternity.

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    Diamond Member adrianh's Avatar
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    My honest opinion is that insurance is a total waste of money. I would rather buy cheaper stuff and pay it off, then save the money so that I could replace or repair should anything go wrong.
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    Yes & no adrianh. Even if i were driving a banger worth R10 000, i'd much better have some sort of insurance. Take the instance that i drive my banger into Phil's Merc, Phil without hesitation would take me to the cleaners

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    Bronze Member Didditmiself's Avatar
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    The real value of using a broker lies in the fact that clients who do business via a broker are probably most informed, their expectations are better managed and there is better facilitation and representation during the claims stage.


    I was a client of OUTsurance for a number of years. From my experience, insuring without using a broker may be (a bit) cheaper in comparison to going through a broker. But hell do you have hassles! My wife was parked outside a client and some guy on his way to synagogue reversed into her car (R8000-00 +- damages). Besides the fact that the guy was not interested in assisting her in any way (he gave her the name of his ins co. and that's all), it took us almost a year to get settlement. Add the cost of wasting time on (20min waiting time) tel. calls, petrol wasted on quotes (no assessors came to look at the damage - we had to email photographs), sign and forward declarations, get affidavits and and and. We have left outsurance after we received our bonus for not claiming for 3 years and are now insured through a broker. We had a claim for damage to my sons' car. The whole matter was sorted out including repairing the damage, in 5 weeks. Could've been sooner but the motor industry strike made getting parts a bit difficult. So, yes it is a bit more expensive, there is no cash-back carrot but the claim is sorted asap with 1 phone-call to the broker.
    And yes, some people feel insurance is a waste of money. When you've been the victim of circumstance and you've suffered considerable loss like a fire at your business, I'd rather be insured than not. But I still regard it as a grudge purchase....

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    Diamond Member Justloadit's Avatar
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    Quote Originally Posted by adrianh View Post
    My honest opinion is that insurance is a total waste of money. I would rather buy cheaper stuff and pay it off, then save the money so that I could replace or repair should anything go wrong.
    Its not the insurance on your vehicle that is really required, but third party. If you have no insurance, you sure have have a long uphill battle defending yourself, even if it was not your fault, as you personally have to defend the case.

    What about if some one knocks into you? OK so you can write your banger off, and get a new one, but surprise, you will not find anything decent for less that R50 or R60K, which still needs a bit of TLC and bucks to make it reliable again.
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    Gold Member Dave S's Avatar
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    I am insured (two vehicles) through a broker and it's a lot cheaper than when I was direct with Outsurance, and that's after the broker fee. Had my first claim a coupla' weeks ago and it went off without any hiccups, the broker took care of all my queries, etc. Saved me a lot of hassle.
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    Email problem Phil Cooper's Avatar
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    I have recently found, when quoting on Outsurance business, that I come in considerably - 20%+ - less costly.

    With much wider covers too.

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    Diamond Member Justloadit's Avatar
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    Quote Originally Posted by Phil Cooper View Post
    I have recently found, when quoting on Outsurance business, that I come in considerably - 20%+ - less costly.

    With much wider covers too.
    It's all a master plan, start off with low premiums, and when the public is sort of comfortable with the barrage of advertising, you push up the premiums on new policies, as people are tricked into thinking that they getting the best deal cos there is no broker to collect his commission.
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    Bronze Member Didditmiself's Avatar
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    Quote Originally Posted by Justloadit View Post
    It's all a master plan, start off with low premiums, and when the public is sort of comfortable with the barrage of advertising, you push up the premiums on new policies, as people are tricked into thinking that they getting the best deal cos there is no broker to collect his commission.
    Precisely!! When we started off with OUTsurance, the quotes were MUCH lower than brokers. Things looked very rosy. Our first claim for water damage due to a leaking roof was repudiated, due to "poor maintenance" as they put it. The following year our premiums went up - not by a helluva lot - but up they went. I immediately queried this; " The risk is greater because the house is getting older." WTF? When they originally inspected the house they accepted it as it is (It's in a very good all round condition for a 60 year old house and we keep it well maintained) but we don't go climbing all over the roof looking for bloody chipped/broken tiles. Anyway after threatening to go to HelloPeter.com, (and cancel my insurance), they reverted to the previous premium (which has been going up year after year anyway). But no more brokerless insurance for us....

  10. #10
    Email problem Phil Cooper's Avatar
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    They tell you "while other Insurers are using double digit increases we are only 4%".

    But do it 3 - 4 times a year.

    People see a SMALL increase - and ignore it because it is small. But it adds up!

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