Ask questions, save money
By David Waters, Managing Director CHIS and PrimeCare Insurance
September 2011
It's no secret - we all want to get the right insurance policy and pay as little as possible for it.
Who wouldn't, right?
But with so many options out there, it is becoming more and more difficult to nail it down to a hard answer and most times it becomes an exercise in what can be quite complex comparisons.
Realistically then, the goal isn't so much about "finding the right" policy (it's not a treasure hunt after-all) as it is about weighing up the options and making the best decision at the time. Sometimes the best cover for you may even be a customised mix of insurances selected from several providers.
Start asking questions
Now, don't be put off by this - if they're doing the right thing by you, your insurance specialist should be talking to you about your options and helping you come to the best decision. (That's what they're there for.)
To get this conversation started before your next renewal is due (and in the interests of securing the best value for your money), you might like to consider these tips and pointers:
Make a list of the kind/s of cover you really need. Buildings, contents, resident's effects, business interruption, employer's liability (£10M indemnity), public liability (£5M or £10M indemnity), malpractice (£5M indemnity) and legal expenses are all covers that most of us need.
Identify the covers you'd like but don't necessarily need. Computer and personal accident are typically covers some of us will want but may not be essential.
Strike out the covers you don't need. Book debts and goods-in-transit are examples of things that cost extra but may simply be wasted in some cases.
Get a second opinion. Better yet, get a third - summarise your information above including sums insured, gross fee revenue, indemnity period for business interruption, lists of resident's effects and details of any claims in the last five years with total costs, and issue three brokers with a quote request. Ask them specifically to confirm ALL the covers they are putting forward as part of their quotation.
Make price A factor, not THE factor. Compare the premiums and covers, and make sure you note the service offering - the cheapest may leave you too exposed, and the most expensive may be padded with things you'll never need.
Ask about the premium gap. Your broker pays a proportion of your premium to the ultimate insurer and retains a portion as their fee - you should know what this is.
Get references. Have you heard of this broker/insurer before? It's an obvious question that many fail to ask. Check up on them and their service, and make sure you can be confident they'll be playing for your team if something should go wrong.
And lastly…
Stay focused on the point. While price is important, it boils down to a question of value. This is about making the best decision you can to secure the protection you need.
These pointers should get you well on your way to being a well-informed and responsible insurance buyer. If you still have any doubts or issues to clarify, contact David Waters at CHIS on 01273 645921 to talk it over, or you're welcome to send an email to david@chis.net.
If this article has helped you make better choices, we'd love to hear about that too! Drop us a line and share your experience at info@chis.net.
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