How to find a reliable insurance broker in Port Elizabeth
Everything you need to know about insurance brokers
Port Elizabeth, Eastern Cape, South Africa
Do you need insurance advice or help finding the best insurance package for your needs and budget? An insurance broker located in your area could be the solution. There are many insurance brokers in Port Elizabeth (PE), South Africa, but not all brokers are unbiased or trustworthy.
Any advice-giving service must be scrutinised beforehand to ensure you get sound advice to make an informed decision. To assess whether an insurance broker is trustworthy, you need to know how they operate, how they make money, what laws apply, and more.
Can an insurance broker really benefit you? Are there hidden costs involved? How can you know if the broker has your best interests at heart? Here’s everything you need to know about insurance brokers in PE and how to assess whether the broker you want to hire is reliable.
What do insurance brokers in Port Elizabeth do?
In every part of South Africa, an insurance broker plays the same role – working for you, the insured person or company. Brokers should have your best interest at heart and should work to get you the best deals and results. Their job is to help you find the insurance you need at the best price. They should also offer you advice regarding matters of insurance and help you with processes, forms, and claims.
Insurance brokers can communicate with the insurance company on your behalf and represent your needs in a knowledgeable way. A good insurance broker will have experience in the field of insurance that you need, whether business, personal, vehicle, or specialised insurance. Their insights into how the industry works can help you find good deals and make the most of your insurance experience.
Brokers in PE often start by gathering insurance quotes for you either as sole packages or as combined insurance solutions. A good broker won’t be inclined to offer you plans from only one insurance provider unless it really is the best plan. Once they have shown you quotes and discussed the options with you, you can ask any questions and raise any concerns. When you’re happy, the broker will help you with the process of acquiring the policy or a combination of policies, taking the stress out of the application process.
What questions should I ask my insurance broker?
- Ask for references and the history of the business
This information can help you determine the longevity of the operation and whether there are reliable testimonials and case studies proving the broker’s trustworthiness and results. Insurance brokers that have been in the business for a while are often more experienced and can benefit you more. When looking at testimonials, references, and case studies, assess the experience of other customers and ask whether a pattern of bias towards a certain insurance provider can be observed. Such bias could mean the insurance broker is likely to offer you insurance from this specific provider and may have ulterior motives.
- Ask about their fee structure and what they will charge you
Sometimes insurance brokers in PE do not charge their customers a fee at all because the commission they get from the insurance provider is enough for their business to function well, while others may charge you a fee. The law states that your broker should discuss fees with you upfront, and this could be a sign of trustworthiness. You should agree to fees in writing before the broker commences with any work on your behalf.
- Ask about their processes and advice
A good insurance broker can advise you on the details and has in-depth knowledge and experience in the industry. Good insurance brokers are also easier to work with. Not all insurance brokers are the same. Some will give you a lot of paperwork and things to get done, while others take the burden of administration on themselves and make your life easier. You’re looking for an easy to work with, reliable, experienced, and thoughtful insurance broker to get the best results. A broker who seems reluctant to share information may not be a good fit, as one of the biggest benefits of a broker is their insightful and personalised advice.
What do brokers in Port Elizabeth charge?
Insurance brokers in PE can only earn a living in two ways. First, through commission received from insurance companies, and second through fees charged to their clients. The commission an insurance broker receives from an insurance company forms a percentage of the monthly premium of the customer. This percentage is prescribed by law and can be up to 20% depending on the kind of insurance. The broker will have an arrangement or agreement with insurance providers.
Sometimes brokers can be biased towards a provider who offers them more returns, but any professional or reliable broker won’t put together your insurance solutions based on their commission. Many reliable brokers also charge each customer fees, and these fees are decided upon by the broker. It will be different from broker to broker, so it’s best to compare fees before choosing a broker. Remember to consider the other benefits of the broker before deciding.
Information quoted is correct at the time of publishing this article. The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.