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Why Use A Broker?

Insurance is complex. There are many policies on the market to protect you and your business against a wide variety of risks.

By using a broker you engage a specialist who can save you time and money together with peace of mind should disaster strike.

Accepting quotes from 'compare' sites may be dangerous. They may seem cheaper but are they giving you the cover you need? Because of the complexity of insurance you will be far safer speaking to an experienced insurance adviser who can ensure the product you purchase suits your needs.

Here at Lifesure we represent you, the insurance purchaser, not the insurer. We offer professional advice on house, car, business and other insurance needs.

The Financial Services Authority (F.S.A) now regulate all insurance bodies for your protection and all insurance advisers must ensure, before they offer quotations or advice, that they are aware of your personal needs and requirements and offer a product that will satisfy both.

This may not be done extensively when completing questions on 'COMPARE' sites as the questions are rigid and cannot be elaborated upon. At Lifesure our advisers are trained to obtain greater details if they feel the information will ensure correct cover and better premiums.

EXTRACT FROM THE OBSERVER - "Sunday January 27th 2008 'Research from the British Insurers Brokers' Association show that more than half those who use such website's do not fully understand the differences between the policies on offer and only 6 per cent believe the policy details are explained fully. It also found that many price comparison sites use 'assumptions' as the base of their quotation which could lead to consumers purchasing a policy that is not appropriate for them."

The association has called for the F.S.A. urgently to review the way it regulates such websites'.

'Compare' quotes are always set. At Lifesure we are often able to offer bespoke quotes tailored to fit your needs with a premium agreed by a personal underwriter who will assess the risk sensibly.

Buying via a 'compare' site can have drastic ramifications, as our CASE STUDY demonstrates.

Case Study: Parents See Sons Claim Thrown Out

John Taylor bought a car for his sons 18th birthday. He was aware of the dangers of insuring the car in his own name to obtain a cheaper quote (fronting)** so went online to compare best quotes.

His son, Paul, had passed his theory test but was yet to take his practical test so still had a provisional driving licence.

The insurance was purchased, online , for £1077.00 with a well known insurer. The application was completed correctly.

Paul was then involved in an accident five months later.

The insurers refused to pay the claim because three months after buying the insurance Paul passed his test and failed to notify them.

John Taylor, acting for Paul, pointed out that nowhere on the application completed, when purchasing the insurance, did it state that the insurers must be informed when the proposer had obtained a full licence.

The insurer then pointed out that the information should be disclosed under the 'relevant information' disclosure.

The insurer says that had they been informed Paul would have had to pay an additional premium based on a revised annual rate of £2400.00.

On appeal the insurers met the claim on the understanding that Paul paid the additional premium.

Of course Paul had no choice but to make the payment

Had John have spoken to one of our advisors he would have been offered a competitive quote with an underwriter that will not increase the premium when a full licence is obtained.

**What Is Fronting?

Car insurance firms are rejecting a thousand claims a year as some parents and children lie to save money, says the Financial Ombudsman Service.

A fraud called 'Fronting' occurs when a young person has a car in their own name, but the insurer is falsely told that a parent is the main driver.

But critics question whether the insurers themselves are doing enough to discourage fronting or giving adequate warnings to people that might be committing insurance fraud.

During the online application process some firms - including Esure, Churchill and the Post Office - allow a car owned by a young person to be insured by a parent who then puts their child down as an occasional driver.

The insurance industry itself will not reveal any figures on how many claims it is turning down, but the Financial Ombudsman Service says it deals with between 100 and 200 fronting disputes each year, and that indicates that firms will be dealing with around 100 such cases annually.

Some details taken from the BBC Money Box 10.2007.