Should you buy insurance directly or through a broker?

Choosing the right insurance has become more complex than it used to be. With an increasing number of providers and more detailed terms, it’s important to look beyond just the price. Raivo Piibor, Head of Insurance Business Line at Coop Pank, explains when it’s worth dealing with an insurer directly and when turning to a broker may be the better choice.

Every year in Estonia, thousands of home and traffic accidents occur, along with unexpected health issues. These can impact not only your finances but also your overall quality of life. That’s why it makes sense to think about how to protect yourself against unforeseen risks.

Price isn’t everything, terms matter as well

Many people start searching for insurance online, where the lowest price often becomes the deciding factor. However, the cheapest policy may come with a high deductible, limited coverage, or multiple exclusions – all of which can lead to high costs in the event of a claim.

“Many clients don’t understand the fine print of insurance contracts or know what to compare,” explains Raivo Piibor. “A broker doesn’t just sell a policy – they go through all the terms and make sure the client gets exactly the coverage they need. If a claim arises, the broker also advocates for the client’s rights,” he adds.

One crucial but often overlooked detail is the deductible. For example, while the typical deductible for home insurance used to be €100, many insurers have now raised it to €300. However, there are ways to reduce this amount – such as by combining policies for multiple products or properties.

A broker can save you time and effort

Insurance companies sell their own products directly and are responsible for handling claims. Brokers, however, represent the client’s interests and provide offers from several insurers – usually at least three – to ensure an objective comparison and the best possible terms.

“Often, a broker can offer a more favorable deal than the insurer directly, thanks to access to exclusive pricing and discounts. And this service is free for the client – brokers are compensated by the insurer, not the customer,” says Piibor.

Price differences in the market can be significant. For example, comprehensive insurance for a 5–6-year-old Kia Proceed might vary threefold between the cheapest and most expensive offer.For third-party liability insurance on the same vehicle, the difference can be as much as sixfold – ranging from a few hundred euros up to €1,500 per year.

In addition to the vehicle’s make and engine size, insurance premiums are also influenced by the client’s profile – including age, driving experience, and accident history.

A broker can provide a free overview of the current market and help identify the insurance solution that best fits your needs, both in terms of coverage and cost.

When to choose a broker – and when to go direct

Using a broker is especially useful when your insurance needs are more complex or you’re uncertain about the type of coverage you require. For standard and straightforward insurance products, where terms are generally similar and don’t require in-depth comparison, it may be perfectly suitable to deal directly with an insurer. Going direct may also appeal to those who value personal contact with the insurer, know exactly what they need, and are willing to compare terms and offers independently.

Ultimately, the decision between using a broker or going direct depends on your personal preferences and circumstances. If your needs are simple and the terms are clear, an insurer may be the right choice. But if you’d like a broader view of the market or additional confidence in choosing the right coverage, working with a broker can be especially helpful.

Make an informed decision — and if you're considering your insurance options, take a look at the solutions available through Coop Kindlustusmaakler.