Don't Get Cheated By Your Motor Insurance Broker (Don’t Get Cheated on Motor Insurance)

Don't Get Cheated By Your Motor Insurance Broker (Don’t Get Cheated on Motor Insurance)

Usually, people living in rural areas such as the Shetland Islands are charged much lower premiums because very few people live in those areas and the claims per capita of the population are very few. People living in Inner London and Glasgow are charged the highest premiums because these areas have the greatest population density, larger number of accidents and a higher crime rates.
Fraud

In the UK, the premium amount you have to pay depends on :

The type of car - Is it a car model which is popular with car thieves? Is it a model which is easy to repair in case of an accident? Are the parts easily available and affordable?
The level of insurance coverage chosen – basic or comprehensive.
Claims, conviction, age and experience of the driver.
The district in which the car is kept overnight

There has been quite a bit of fraud going on in the insurance industry. Some brokers have secret agreements with insurance companies to “steer customers” to buy insurance from that company and be paid by the insurance company. The customer ends up paying premiums that are higher because of hidden costs that the insurance company uses to be reimbursed for the money it is paying the broker. For example, the New York State Insurance Department took action against Universal Life Resources, Inc. for violations of state insurance law. The following statements were made about this case : "Today's case demonstrates that the corrupt practices first laid bare in the Marsh suit are present in additional sectors of the industry…secret payoffs and conflicts of interest that infected the market for property and casualty insurance have taken root in the employee benefits market as well."

The costs of ULR's concealed payments were ultimately borne by their customers who did not have any way of knowing about or contesting these illegal practices. So such brokers can add hidden costs in any part of your policy. If you sense that anything is amiss, point it out to your broker. If they still quote unreasonably high premium amounts and do not provide any justification for the high charges, complain to the insurance ombudsman. When you call a brokerage firm or a broker, make sure you note down the name, telephone number and department of the person you spoke to.

In order to protect yourself from auto insurance fraud, you need to do a lot of research to be sure you are getting a fair deal.

Compare insurance quotes and read the fine print in the policies to make sure that you get the coverage you need. Each insurance company calculates credit scores differently, so you need to get quotes from several insurers to find the lowest premium charged. Also, find out what your credit score is because you can ask the insurance company for exceptions if your credit score has been adversely affected by divorce, the death of a family member, job loss or serious medical problems.

Database, which contains details of every insured vehicle in the country. Third P Insurance is a legal requirement in the UK. All motorists have to be insured against their liability for injuries to passengers in their car and those driving another vehicle, sitting in another vehicle or crossing the road and for damage to another persons' property resulting from the use of their vehicle on a public road or in other public places.

You should also be aware that, in the UK, The Motor Insurers Bureau compensates the victims of road accidents caused by untraced or uninsured motorists. The also manages the Motor Insurance

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What Your Car Insurance Broker Should Be Able To Do For You ?

What Your Car Insurance Broker Should Be Able To Do For You ?


The premium an auto insurance company will charge you depends on how old your car is, the engine power, size and theft rate. You car insurance broker should be aware of this and should get you the best quote possible keeping all these factors in mind.

Your car insurance broker should also advise you to reconsider you insurance policy if:

You buy a new car
You get married
You’re becoming old- some insurance companies offer a discount to senior citizens
Move to another part of the country

Based on these factors, he/she may advise you to change your insurance policy. In case of an accident, you car insurance broker will guide you about how you can make a claim on your policy and will help you with the paper work.

So basically, you car insurance broker will try and save your money, and this is how he/she will go about it:

If you took a loan from a bank to buy your car, your car insurance policy should have a “gap cover” on it so that in case your car is completely destroyed in a crash and has no resale value, the amount of money that the insurance company pays you can be used to pay off your auto loan. If your car is only partially damaged, the gap cover amount will be able to cover the loss4s you suffered i.e. the difference between how much the car originally cost you and how much it is worth after the crash. Your broker should be able to calculate how much gap cover you need.
Your broker will go through all the auto policies being offered in the market and will find you the best possible quote.
Your broker should try and get you discounts from the insurance company. You can get discounts for the following reasons:
You bought home insurance from the same insurance company- in this case you can opt for multi line insurance
If your average mileage is usually less than 40 miles per day you will be eligible for low mileage discounts
Installing car alarms and tracking systems, which reduce the chances of theft
If you haven’t received a ticket or had an accident for a long time you may be eligible for a “Good Driver Discount”.

You don’t drive all that often
You are a active or retired member of the military
If you want to pay the least amount of money to the insurance company per month, you’ll have to opt for a higher deductible. Your broker should be able to calculate how high the deductible should be.
Your broker should discuss with you the pros and cons of paying your premium on a monthly or quarterly basis or in a lump sum- paying off the premium in one go may get you a discount.
Your broker should guide you about whether or not you should opt for auto policy add-ons such as roadside assistance. Such add-ons might increase your premium.

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Why Not To Go For An Independent Insurance Broker

Why Not To Go For An Independent Insurance Broker


Since an independent insurance broker sells policies of several different insurance companies and is not restricted to selling the policies of one insurance company only, he or she will be able to find you a policy that meets your needs most closely and charges the lowest premium.

However, there is one major problem. An independent broker is usually an expert in a limited number of insurance types. On the other hand, when you seek the services of a commercial insurance broker who works for a professional company, they can guide you about a large variety of policies and discuss many different types of coverage available. In addition, these large companies are offered special discounts by insurance companies in an attempt to attract more clients. Commercial insurance brokers working for professional companies can provide you with the following services:

Risk and Insurance Services such as global risk management, financial solutions, risk consulting, insurance program management services for associations, businesses, public entities, professional services organizations, and private clients and insurance broking.
Risk consulting and technology i.e. investigative, financial, security, intelligence and technology services to law firms, corporations, nonprofits, government agencies, financial institutions and individuals.
Human resource consulting i.e. consultation in the field of HR and related financial products, advice and services. Consultation helps clients create and implement employee health care and insured group benefit programs.
Investment management. This involves offering equity and fixed income products to individual and institutional investors that are invested globally and domestically.

These services are ideal for businesses and corporations. Professional companies ensure that their brokers are up to date and get rigorous training. These brokers have access to a huge database of insurance companies and as a result, the can find the most suitable policies for you. A commercial insurance broker will prepare reports, maintain records and in case you suffer a loss, he/she will help your company settle your insurance claims. Some brokers also offer financial analysis or advice about how to minimize risk, as mentioned above.

On the other hand, an insurance broker offers paid advice to clients and represents that client rather than an insurance company. In some instances, the broker also receives commission from the carrier for placement of a policy, he points out. This increases the chances of fraud because some insurance companies actually offer illegal kickbacks to brokers in exchange for ‘steering’ clients to buy their policies.

These increased the cost of coverage for customers and made the premium go up. So if you opt to use the services of an insurance agent who represents a reliable insurance company, you will receive free advice and you won’t need to spend a penny. In addition to this, many insurance companies offer you a discount if you buy a policy directly from them rather than going through an independent broker because then they save on paying commission to the broke.

You obviously need the backing of a large professional organization with a lot of resources to provide such services. There is a major difference between insurance agents and brokers. Insurance agents do not get paid by the client i.e. the person who is planning on purchasing insurance.

The insurance agent receives compensation from the insurance company from which the client ultimately buys a policy. The compensation is usually a commission and this is disclosed by insurance companies to state insurance regulators as part of insurance companies’ rate filings. The agents rarely receive compensation from the clients.

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