In recent years direct insurers have flooded the personal insurance market and insurance for car, home, landlords and travel is now only a click away!

Cheap premiums, convenience and cash backs have seen a lot of Australian consumers now opting to organise their personal insurances online rather than going through a broker.

When removing the role of a broker you expose yourself to some potentially serious risk exposures;

  •  Under insurance
  •  Restrictive or inadequate cover
  •  Low policy sub-limits

Under insurance is a serious issue and can mean that you will not have enough money to replace your lost or damaged property. We can provide you with tools that assist you calculate your correct sum to insure.

It is quite common that a cheaper premium will mean your policy only covers those perils nominated on the policy. Have you checked that list of perils? There are many different names that insurers use for their basic level of cover such as a ‘Listed Events’ or a ‘Nominated Events’ policy. 
We promote the Accidental Damage policy which offers considerably more cover. Whilst the cheaper premium of the Nominated Events policy may seem attractive, it is important to be aware that any accidental damage to your buildings or contents is excluded.

Consider the following example, the bracket that is holding your $5,000 television to the wall becomes loose which causes your TV to drop and shatter. This would be covered under an Accidental Damage policy and excluded under a Nominated Events policy.

Direct insurers may provide the benefit of fast quote turn-around times, but what impact do the ‘hidden’ policy terms and conditions have on your ability to claim? Do you check and compare these? 

In our research we have found that some of the direct car insurers require that you must visit one of their approved repairers in the event of a claim. Unfortunately, sometimes it could mean that you are off the road longer as you must work around the availability of the approved repairer rather than using your choice of repairer who has better availability to repair your vehicle and get you back on the road quicker! It is also not convenient for you to have your car repaired, at the insurer’s direction, at a repair location based 20 kilometres away!

Restricted low value sub-limits under the policy are important to understand as it means that you may have only partial cover in the event of a loss or damage. The policy sub-limits for jewellery and valuables tend to vary quite drastically between policies. Some policies cover up to $10,000 for any one item while other policies require any item/s over $1,000 to be individually listed on the policy. Some policies only cover travel within Australia & require you to notify the insurer when traveling overseas whilst other policies automatically cover overseas travel.

A broker has expertise in reading through your policy wording and highlighting the finer details that may be not be immediately apparent to you.
Insurance companies act within their best interest and Insurance Brokers act in their client's best interest.

What happens when the insurer tells you that your claim is not covered because of a certain exclusion in the policy wording? A broker is your advocate in arranging your policy cover and representing you in the event of a claim.  We can argue that a particular exclusion should not apply or that the policy interpretation they are using is incorrect.

Remember, that not all claims are “black and white”. Nearly every claim contains an element of “grey” and that is where our services can turn that “grey” to your benefit.

For more information please contact Morgan on 1800 077 933



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