The Two Biggest Problems Insurance Clients Have

Posted: by Matthew J Denehy

I talk with prospective clients every day. Recommended by other business owners or existing clients, they typically come in and say “You’re the people I have been told will fix my insurance problems”

As a business that relies on referrals, it does not come any better than that, an active referral and endorsement, but I also know that I am going to run into two roadblocks.

I can get it online cheaper

Get “what” online cheaper? One of our clients, had all his insurance policies with us except his car because he could get it online cheaper. Unfortunately his Land Cruiser was stolen and his insurance company declined his claim.

He came to me for help but there was nothing I could do. He had bought it on-line because he thought he could save money. The problem was that his policy did not cover thefts of the vehicle if the keys were used and that’s exactly what happened.

Very few people ever read the insurance policy and even then do they actually understand it? If you don’t, then how do you know what you have bought? What are you getting for your money? There is a reason why the company lawyers go through the policies with a fine toothcomb before they are put to market.

We got him a policy for his new car, ironically from exactly the same insurance company and for not that much more in premium for a policy that DIDN’T have that exclusion in it. Cold comfort when you have written off $90,000 for the loss of your car.

Comparison web-sites regularly feature multiple products of which three probably come from the same insurance company under a different brand.

You need to check exactly what you’re buying and is it what you need?

Insurance is about protection against loss and providing peace of mind. That comes at a cost. If you buy cheap then there’s normally only one way to get there and that is by stripping out cover and protection. Generally, you won’t know as you won’t have read or understood the policy, leaving you exposed.

You charge a brokers fee

“You mean I pay you and I pay the insurance premium?” Yes. A broker provides advice and makes sure that you get the right policy that best suits your needs. They spend time understanding exactly what your real needs are only then look for products.

Brokers provide ongoing advice and regular reviews of your insurance so that as your circumstances change so do your policies. They support you at claim time. In the sometimes David and Goliath showdown between you and the insurances companies they are here to support you and uphold your rights.

Insurance companies are selling products that they want to sell. Things that make them the most money.

As an Insurance Adviser, brokers are under a “legal obligation” to protect clients and to provide the right protection (insurance) service that is fit for purpose. They can be sued if that is not the case.

Insurance companies have no such obligations. You have to sue them if you think you are right or at least fight them at the Ombudsman’s office, which all takes time and money. You know, the same time and money you saved buying online in the first place! So if you want a cheap price and don’t really care what you are buying then jump on-line; it’s probably the best medium to achieve this.

If you want advice about what best suits you; if you want service and support when there are claims; if you want peace of mind at the best price then you need an adviser for more information call: 08 9269 5400 or alternatively e-mail matthew@agileinsuranceadvice.com.au

General Advice disclaimer
Please note that this advice has been prepared without taking into account your objectives, financial situation or needs. You should, before acting on the advice, consider the appropriateness of the advice. If the advice relates to the acquisition or possible acquisition of an insurance policy, please read the Product Disclosure Statement (PDS) relating to the product and consider that PDS before making any decisions about whether to acquire the policy.

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