When you look for personal insurance, you will see that not only are there many different types of insurance, there are also several different ways of purchasing, and from many different companies.

Here is a look at some of the important information you should know before you start searching for insurance policies.

Buying Insurance Online

Many insurance companies are now offering insurance quotes online, with some allowing you to purchase the policy online. There are three different ways in which the internet can be used in directly buying an insurance policy:

(i) All Online

This is where a form is filled in online, a quote is given, and the policy can then be bought using a credit card over the internet.

(ii) Quote Online, Buy Offline

This is where a form is filled in online, and a quote is given (normally online, through email or phone). The actual buying of the policy is done over the phone or face to face.

(iii) All Offline

This is where the quoting and buying of a policy takes place entirely offline. The website is simply there to advertise the policies.

Advantages of Buying Insurance Online

(i) Convenient

Buying insurance online can save you a lot of time. Simply enter your details and then you either click through to your quote, or leave the enquiry until the insurer emails or calls with your quote. There is no need to stay on the phone, repeating your details and waiting.

If you use a broker, you simply fill in the form, and they can then get straight to work on your enquiry.

(ii) Cheaper

Buying personal insurance online is usually cheaper than buying offline. Many online quotes offer discounts (usually 5% of the offline cost); this is normally because the overhead (E.g.: Employee time, phone call bill) costs of an online enquiry are lower; and the insurer can then pass those savings on.

Disadvantages of Buying Insurance Online

(i) Less Personal

Buying insurance over the internet means that the policies are set, meaning that it is not always possible to take into account special situations. Some people also like to be able to discuss their policy in person (often to negotiate discount), and this cannot be done with an online sale.

However, many insurance companies allow you to choose from a range of options that add to or extend your cover. This means that in most cases it is possible to get a good, appropriate quote online.

When buying online you should always check the fine details of any policy, and should request assistance to find a better policy for your situation if you are not satisfied. A 'one size fits all' policy will not always be the best solution.

Should You Use a Broker?

A broker is a third party that provides advice and searches insurers on your behalf to find quotes that match your requirements for the best price.

Many brokers use online application/quote forms in the same way as insurers; although because the brokers do not sell the policy directly, the actual details and payment are normally made over the phone or face to face.

There are several advantages to using a broker:

Advantages of Using a Broker-

(i) Less Work

A broker will do the majority of the hard work for you in sourcing insurance quotes. They will have considerable experience in finding quotes for different types of insurance for many different types of people. This experience means they will know where to look, and will be able to spot missing areas or hidden charges on the fine print of the policy.

A broker can also advise you on whether it is worth taking additional cover, or whether you need specialist cover (E.g.: For a home office)

In the event of you having to make a claim, the broker will also be there as a source of advice, and can help ensure you get a satisfactory settlement in the quickest time possible.

(ii) Cost

As a broker deals with insurance companies on a regular basis, they have a vast knowledge of what a reasonable price should be. They also purchase large number of insurance policies over a period of time, and can often negotiate discounts which are then passed on to you.

Even with brokers fees (which are often covered by the commission from the insurer), the discount prices mean that a broker can usually get you a better deal than would be available by searching yourself.

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