Choosing the right insurance partner is more than just comparing premiums. Whether you’re insuring a business, commercial property, or personal assets, the choice between an insurance broker and an insurance company can impact the value, flexibility, and level of support you receive.
In this guide, we break down the pros and cons of each to help you make an informed decision.
What Is the Role of an Insurance Broker?
An insurance broker is an independent professional who works on your behalf to find the most suitable insurance policies. Rather than being tied to a single insurer, brokers compare multiple providers to get the best coverage at the best price.
At Auswide Insurance Brokers, we act as your trusted advisor—understanding your needs and navigating the insurance market for you.
What Does an Insurance Company Offer?
An insurance company (also known as a direct insurer) sells its own policies directly to customers. You deal with their internal representatives or online systems to choose and manage your cover.
While this approach may seem simpler, it limits your choices to that one provider’s range of products.
Key Differences: Broker vs Company
| Feature | Insurance Broker | Insurance Company |
| Choice of Policies | Access to multiple insurers | Limited to own products |
| Advice & Customisation | Personalised advice | Generic options |
| Claims Support | Assists you through claims process | Must manage claims yourself |
| Cost | Often more competitive due to comparisons | May offer discounts but fewer options |
| Fiduciary Duty | Works for you | Works for the company |
Pros of Using an Insurance Broker
- Unbiased Advice: Brokers represent your interests, not the insurer’s.
- More Options: Access to a wide range of policies from multiple insurers.
- Time-Saving: Brokers compare, negotiate, and set up your cover.
- Claims Assistance: A broker helps guide you through the claims process.
- Tailored Solutions: Especially helpful for complex needs (like commercial, property, or business insurance).
Pros of Going Direct to an Insurance Company
- Quick Setup: You can buy a policy online or over the phone directly.
- Fewer Fees: No broker commission (though premiums may still be higher).
- Brand Recognition: Some prefer well-known names they’ve seen advertised.
So, Which One Should You Choose?
If you value expert guidance, customised coverage, and claims support, an insurance broker is the smarter option—especially for complex or business-related policies.
At Auswide Insurance Brokers, we specialise in commercial, motor, business, motel, construction, and landlord insurance—providing tailored advice that insurance companies can’t offer directly.
Final Verdict:
Insurance brokers offer more flexibility, better advice, and real value—especially for businesses or anyone needing more than just a standard policy.
FAQs
1. Do insurance brokers charge a fee?
Sometimes, brokers may charge a service fee or earn commission from the insurer. At Auswide Insurance Brokers, we are upfront and transparent about any costs.
2. Will I pay more using a broker?
Not necessarily. Brokers often negotiate better premiums and broader cover than going direct.
3. Can brokers help with claims?
Yes. This is one of the biggest advantages of using a broker—they act as your advocate during claims.
4. Are brokers regulated in Australia?
Yes, insurance brokers are licensed under ASIC and must follow strict codes of conduct.
5. What if I already have insurance?
A broker can review your current policy and advise if it’s still the best option or if better coverage exists elsewhere.
Need Help Choosing the Right Cover?
Auswide Insurance Brokers can help you compare multiple insurers and tailor a policy that suits your personal or business needs.
Get a Free Quote Today
Or call us on 1300 354 477