You can choose to purchase insurance based on information alone or you can choose to purchase insurance based on information and advice. There is a difference between obtaining information and obtaining advice.
In the UK, the sales of most insurance is regulated by the Financial Services Authority. All insurance firms is required by the rules of the FSA to provide you with sufficient information about their insurance products and services. However, they are not required to provide you with insurance advice. If you choose to purchase an insurance policy without obtaining insurance advice from a broker, you might end up purchasing an insurance policy that is unsuitable.
When you obtain insurance advice , the insurance broker recommends an insurance policy that is based on your individual circumstances and needs. It is recommended to have a face to face meeting with an insurance broker when seeking insurance advice; however, you can also obtain advice by phone, email or even through the post. The FSA is very strict on insurance advice. If a broker gives you wrong or unsuitable advice, you have the right to place a formal complaint against the broker and in some cases, you can also seek compensation.
When you contact an insurance broker for advice, you should make sure that you obtain all details about the services that he offers. It should be clear to you if he is offering information and advice or if he is only offering information. You should also find out if the broker is offering insurance policies from one company or more than one companies.
Shopping around for an insurance policy can be a bit difficult since that there are so many insurance providers and insurance deals that are available on the market. When comparing insurance policies, there are a number of key factors that you need to focus on. These are: the costs, the flexibility, the terms, and the suitability. You need to know if the policy is suitable for your needs, what will happen if you miss a payment or if you would like to cancel the policy or switch to another policy, and finally what the pay out terms and restrictions are of the policy.
