For many years, since the concept of insuring a car against road accidents became compulsory as well as common sense, insurance companies have been issuing policies. History shows that the first policy ever written for car insurance was recorded way back in 1895 in the United Kingdom. It would be impossible to trace exactly how many car insurance policies have been written since then.



Probably in the early days, there were so few people running cars that the insurance companies dealt with them directly. However as car ownership became more widespread, the large insurance companies, who were also involved in other insurance coverage such as home, property, life among an endless variety of permutations began to be overwhelmed by applications for car insurance which they found difficult to cope with.

For the car owner, finding an insurance company also was a frustrating experience as the major insurance companies were all situated in the big cities and for someone in the peripheral regions taking out car insurance involved a long and expensive journey in the days before telephones were few and far between never mind faxes and the internet.

So the insurance companies began to appoint brokers to promote their various policies. These brokers eventually begin to spring up in every small town, and the public were happy to welcome them as their presence made the whole concept of taking out insurance policies so much easier and friendlier, not only car insurance but the entire package. Insurance brokers became part of the backdrop of life, along with family doctor, the dentist, the butcher and the bank.

Insurance brokers are business people who earn their profits from commissions from the insurance companies whom they represent. A worthwhile insurance broker will have received some form of formal training as well as being extremely well versed in the policies available not only from their employers but also from the opposition.

A true test of an insurance broker is in times of crisis. A surprisingly large number of people go through life paying their car insurance every year without ever needing to make a claim. However when the time comes for them to make a claim the true test of an insurance broker begins. How quickly and efficiently they handle the claim is the true test of insurance broker's worth.

In most cases the claim is handled to the customer's satisfaction and the relationship between the insurance broker and their client remains sound. Some car owners have been with same insurance broker for years, are personal friends and refuse to even investigate the possibility of going elsewhere to compare prices. For others, their loyalty lies only in their pocket, and are prepared to change insurance brokers to get a better deal.

Checking out the market is totally legitimate, and especially lends itself to the internet age in which we live. Nowadays it is possible to go on line and compare quotes from several companies for car insurance. Certainly more impersonal than working with an insurance broker but usually less expensive. Online insurance brokers have overheads that are a fraction of their land based competitors, and can afford to pass on these savings to their customers. You might not get a card this Christmas, but on the other hand you should be able to save between ten to fifteen percent on your annual insurance premiums. Worth thinking about.

Copyright (c) 2009 Graham McKenzie