Questions to Ask Your Broker

Choosing the right Insurance company to insure your most valuable assets is vital for peace of mind in today’s modern world, it’s taken you a lifetime to accumulate what you have and it only makes sense to insure those possessions from the bad elements of our society. When choosing an insurance company, it’s important to distinguish between the insurance company, itself, and the insurance brokers. These are two different processes, and there are different questions you should ask in each case.

Insurance Broker:

Insurance Brokers are essentially commissioned salespeople who work for specific insurers. As a result, they may not always offer the most competitive policies. Critics of brokers believe that they cannot be objective about insurance products. Others insist that the only way to find your way through the myriad of insurance options is with the help of a good agent. Just keep in mind that some are more helpful than others.

Here are some questions to ask when interviewing an broker:

  1. How long have you been in business?
  2. How are you compensated?
  3. Which insurance companies do you work with?
  4. What insurance carrier do you do the most business with?
  5. How much clout do you have to resolve a tough claim or coverage dispute?

If the broker is unwilling to answer or seems bothered by these questions, find somebody else.

Insurance Companies

Ask the broker or company the following questions about individual insurance companies:

  1. What is their reputation for paying claims?
  2. What is their financial rating?
  3. Have they been in and out of the market or are they a long-term player?

We suggest that before you make any decisions or purchase a policy, you should at least get 3 to 4 separate quotations from different South African Insurance Companies. Take you time and don’t be in a rush. Investigate each Company and the Cover options they offer thoroughly, also look at the extra benefits they have and what kind of cash back incentives they have, if you don’t make any claims.

The last thing you need is to be under insured at a time of crisis, because you didn’t read the fine print.