In light of last week's Competition Authority report into insurance brokers' charges, Wesley Boyd advises motorists to be wary of what they're paying for
Do we need motor insurance brokers anymore? They are a comfort and a convenience to many motorists who do not want the hassle of arranging their own cover, but if my experience is typical they need to sharpen their performance if they wish to survive.
For years I have used a broker. All I had to do was wait for the letter to arrive on the due date and send off a cheque, in the belief that the most reasonable cover had been sought on my behalf.
This year the letter arrived as usual. The quotation was a few euro down on last year, €876 against €892. In addition there was the usual broker's fee of €40 and a recommendation to subscribe to the RAC Motor Assist scheme for an additional €35.35, a grand total of €951.35.
As my old policy had included free Breakdown Assist and my new policy was with the same company, I rang the broker to see if the cover had been discontinued. I was told the Assist cover applied only in the event of an accident. Checking the small print of my old policy I discovered the cover applied to roadside and driveway assistance.
Back on to the broker. Sorry, said the girl, we made a mistake, the cover continues as before. Then why, I asked, are you recommending duplicate cover with the RAC at additional expense?
Just routine, I was informed. Not wishing to waste the cost of the phone call, I took the opportunity of inquiring if a cheaper overall quotation could not be obtained, given the general downward trend in the market. She rattled off a list of quotations, including one for a particular company at €890.
I rang this company directly and got a quotation for €750 plus one week's free cover.
Fired by my competitive zeal I rang another broker. This time the quotation was for €691, including the broker's fee of €25. And this policy was with the same company that had quoted me €750 half-an-hour earlier.
Third time lucky, I decided, and made no more calls. So in the space of an hour or so I had obtained like-for-like cover with a large and reputable company for €260.35 less than the original quotation from the broker with whom I had done business for years.
When I taxed the old broker with the fruits of my own endeavours, I was limply told that sometimes it was possible to get a cheaper quotation by going directly to the market.
With growing competition for motorists' custom and the facility of getting a quote literally within minutes on the telephone or online, it would appear brokers need to pull their socks up and their prices down.