- Would I pay more as premium for employing the services of a broker
Ordinarily NO, as the remuneration of the broker is already embedded in the premium paid. Transacting insurance through the intermediary of a broker does not necessarily makes the premium payable higher. If anything, it is usually lesser premium as the broker is expected to use his skills to negotiate competitive premium rates, better terms and favorable policy conditions and warrantees.
However, a broker may charge administration fees in addition to its commission if in addition to placing the client's policy, he is engaged in other consulting or other extra risk management and risk control duties as may be agreed with the client.
Why should I use an insurance broker?
An insurance broker's job is to help you to deal with the complex questions which insurance raises. Insurance brokers provide convenience, choice and expertise. Convenience, because one insurance broker can normally handle all the insurance policies you need. Choice, because one insurance broker deals with a range of insurers and will suggest the contract which best fits your particular circumstances. Expertise, because insurance brokers spend their working lives learning about insurance; they know far more than you have time to learn.
I'm concerned I'm being sold policies with high commission
Its not in the insurance broker's interest to do that. He wants to keep you a s a client for many years and he won't if you find out he's sold you an unsuitable policy for the sake of a higher commission. If you're really worried about this, you can ask broker to explain different policies to you.