Choosing the correct insurance solution is a big decision that can seem daunting. It can be helpful to simplify your options when searching for the right fit. When it comes to securing insurance, you’ve got two main routes:
- Buy directly from an insurance provider
- Work with an insurance broker or adviser
Each option offers distinct advantages. The best fit depends on your level of insurance knowledge, the complexity of your needs and how much guidance you’d like throughout the process.
Advice and guidance
Insurance brokers in South Africa provide personalised advice based on your needs. Brokers can identify risks you may not have considered and recommend policies that provide the right level of cover.
Going direct is better if you already know exactly what you want and buying directly from an insurer can be quick and straightforward. However, you won’t receive tailored advice.
If you’re new to insurance or unsure about what cover you need, a broker may be the better option.
Communication and support
With a broker, you’ll deal with someone who knows your personal circumstances and can provide one-on-one support. Brokers often assist with claims, policy changes and queries.
When going direct, your point of contact will likely be a call centre. While convenient, you may speak to a different consultant each time, requiring you to re-explain your situation.
If you value personalised service, brokers offer a more consistent experience.
Help across different insurance types
Your insurance needs will evolve as life changes; buying a house, starting a family, or expanding a business.
Brokers can assess your needs annually and recommend adjustments as your circumstances change.
When going direct, you’ll need to manage and update your cover on your own with the insurer.
Convenience and speed
A broker may take longer since you’re not transacting directly with the insurer.
Going direct is usually faster, making it convenient if you need a simple product (like basic car insurance) immediately.
Type of insurance needed
Insurance brokers are best for specialist insurance (e.g., tax, art, antique, marine, or engineering cover). Brokers have industry expertise and understand unique risks.
Going direct to an insurer is better for general insurance products like car, home, funeral or life insurance, where the process is simpler and pricing is more standardised.
Which option is best for you?
Choose a broker if you need advice, personalised service or specialist cover.
Go directly to the insurer if you know exactly what you need and are looking for a fast, convenient purchase.
Hollard gives you both options
At Hollard, you don’t have to choose one or the other.
You can buy directly for car, home, life, or funeral insurance or work with a Hollard-accredited broker for advice and tailored solutions.
Get a Hollard insurance quote today, whether directly online or through a trusted broker.
FAQs about insurance brokers vs direct insurance
Is it cheaper to buy insurance directly?
Not always. Sometimes brokers can access better deals due to their relationships with insurers.
Do brokers work for the insurer or the client?
Brokers represent the client. Their role is to act in your best interest when recommending cover.
When should I use a broker?
Use a broker if you’re unsure about what cover you need, or if you require specialised insurance.
Can I switch from a broker to direct, or vice versa?
Yes. You can choose whichever method suits your needs best and even change later if your situation changes.
Disclaimer
This article provides general information only and should not be taken as financial advice. For tailored assistance, please consult a Hollard-accredited financial adviser or a licensed financial professional registered with the Financial Sector Conduct Authority (FSCA).
