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Why is insurance cheaper through a broker?

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Old Oct 27, 2012 | 08:44 AM
  #1  
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dojj
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From: Little India
Default Why is insurance cheaper through a broker?

My insurance renewal came through on the fiesta do, as normal, I rang around

I also used the price comparison sites

It's only a fiesta so I wasn't expecting the cheapest online quite to be virtually double the renewal

What's more confusing is that the price I'm paying via the broker, if you take the fees out of the equation, is nearly 1/3rd of the price I've been quoted by the same insurer online

How is this possible? Do they roll a dice? Same thing happened last year on the Mondeo. But in that case the broker originally said the best price from that company was the one given, and then phones back and said there was another company who would do it £100 cheaper, the kicker was that it was the same company I was already with

Are they on some sort of commission? Or is it magic?

I'm chuffed that I've saved more than £250 on last years price though
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Old Oct 27, 2012 | 10:16 AM
  #2  
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From: ayrshire
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all the brokers will have differing levels of discount, depending on how well they promote the insurance company and how much money they bring in.

its like phones, going to your network provider is not always the best deal, places like carphone warehouse and phones 4 u, can sometimes get the same tariff and phone cheaper
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Old Oct 27, 2012 | 11:43 AM
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From: Stockport
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Deffinately magic dojj, it's the only reasonable explanation.
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