The role of a motorcycle insurance broker is occasionally either misunderstood or at other times, simply not understood at all. Let’s set the record straight!
In terms of technicalities, motorbike cover is based around the idea of a policy.
A policy defines what protection you are being offered, under what circumstances/conditions, by whom and typically also things such as exclusions.
The policy is typically provided by an organisation called the insurer or insurance company and may be guaranteed by people called the underwriters.
It isn’t really necessary to explore any further, the technicalities of the role of underwriters and individual components of these companies.
All that it is worth saying is that these organisations tend to market their products directly to the public, to the public through brokers or sometimes only to brokers and intermediaries rather than directly to the general public.
Differences In The Source Of A Policy
As a member of the public and a consumer, in terms of philosophies it doesn’t really matter very much where you purchase your policy from.
Providing it is a bona fide policy, underwritten by a duly authorized and regulated organisation, then it will be capable of providing you with the financial protection it documents.
That will apply whether you have purchased it through a broker or directly from one of the insurance companies.
The Role Of A Broker
The broker will have access to a large number of potential insurers.
Unlike the average member of the public, they will have an in-depth understanding of the marketplace and the options that exist out there.
By contrast, a typical individual biker won’t have and may only be able to get a fairly general understanding by contacting numerous individual insurance companies.
The broker’s role is therefore to understand a biker’s exact situation and to try and recommend a number of options that they know to be suitable for his or her needs.
For example, if you have a number of bikes, a broker might be able to recommend a specific multi bike insurance policy that they know might offer you a significant financial advantage over others.
That might be an option you may miss entirely if you were trying to source your own policies directly from individual companies.
The price issue
A misconception that is occasionally encountered relates to the belief that it must be cheaper to purchase your cover directly from an insurance company rather than a broker. This runs along the lines that a broker must be adding their percentage.
In fact, that may well be mistaken.
It is worth remembering that some insurers offer special policies to brokers that are not available to the general public. Brokers may also receive bulk discounts that they may be able to pass on to you.
So the bottom line is, don’t make assumptions. Look carefully at the prices offered by brokers and compare them against other options. You might be pleasantly surprised!