People of our father’s and grandfather’s generation used to depend on the insurance agents for their insurance needs. In the absence of an insurance agent, they used to approach the insurance providers/companies directly for any insurance-related queries.
When this insurance agent, earlier loyal to a single service provider, became an agent for multiple insurance service providers, the concept of insurance broker came into being.
Although, nowadays there is a massive difference between a traditional insurance agent and an insurance broker.
It is necessary to understand the growth of insurance distribution to make a wise decision while renewing your car insurance.
Let’s now have a look to know the difference between an insurance agent and a broker, and some other popular ways to renew your car insurance.
An insurance agent is someone who embodies the interest of your car insurance company. An agent as per law can represent only one insurance company at a time. These agents are trained and licensed to understand your financial needs and accordingly sell car insurance products of only one insurance company to renew the car insurance. Since you are solely dependent on the insurance agent he/she could possibly misguide/mislead you into buying the wrong insurance plan.
An insurance broker is a trained and licensed individual with a different objective than the insurance agent. This broker directly represents you and not the insurance company. This is the responsibility bound by law.
An insurance broker has to understand your needs and study all the types of schemes of the different insurance companies in order to help with the best car insurance products as per your requirement.
The best and the most popular option to renew car insurance is by contacting an Insurance Broker. This helps you in saving your money when you want to renew your car insurance policy as well as to get the best coverage. Be it renewals or endorsements like the name change, mobile number change, the Insurance Broker does it all for you.
Nowadays, there are online insurance broking companies that do the work of a single insurance broker, through their team of service managers.
You can definitely sue your insurance broker because he represents you. You can approach IRDAI and the broker may lose his broking license if found guilty.
Directly from the Insurance company’s website
You can go online to any insurance company’s website, sign-up, and then compare the quotes, features, and other benefits before you renew car insurance policy. Many people believe in buying or renewing car insurance directly from the insurance company’s website.
Insurance Aggregators are the online portals that provide the potential customer with comparative quotes from different insurers. They allow customers to compare features, premiums, benefits, and coverages. These insurance aggregators are limited to provide comparisons and buying/renew car insurance policies. However, they do not have any after-sales services.
Which is the best option
What would we do without the internet? Buying or renewing car insurance online especially through online insurance broking portals is another best option. Simply because you save a lot of money, it’s quick and simple, hassle-free, and the most efficient way of renewing car insurance.
So, show your car the love that it deserves by renewing the car insurance either from an insurance broker or by buying online. Buy the right insurance plan for your car and reciprocate your love towards your car.