The oft-cited reason for not using a broker when buying PMI is price—the belief that a cost saving can be achieved by going direct to the insurer. This is a misconception that is easily dispelled: the price is the same whether you buy direct or through a broker. In fact, most brokers have access to preferential rates that are not available direct from the insurers.

Whatever its faults, the UK medical insurance market is very consumer friendly: it is set up in such a way that consumers can access independent advice, nearly always without charge. This applies to both new and existing policies, so those who have previously bought direct and want to improve their terms can approach a specialist broker for free advice.

Some consumers are concerned about brokers receiving commission, but these reservations tend to be expressed in uncertain terms. The influence of commission is a separate issue, so I’ll deal with that in a separate post. In the meantime, I’ll outline four reasons why you should use a broker when buying health insurance:

1. No two PMI products are the same. Comparing five ‘budget’ plans on a price-comparison website and choosing the cheapest isn’t the way to go. For a few extra pounds a month, you might get better cancer cover and more out-patient cover, for example. A good broker will be looking for the best-value policy, not necessarily the cheapest policy.

2. Your medical circumstances are unique and may well determine the most suitable insurer. If you’re switching from one insurer to another on a ‘no worse terms’ basis, it is vital that you understand and meet the transfer criteria. A competent broker will ensure that you don’t unwittingly make a false declaration.

3. The broker can act as a buffer between you and your insurer if you ever run into problems and should advocate for you if you enter into a dispute.

4. As mentioned above, some of the most competitive products on the market are only available through brokers. This may sound counter-intuitive, but I can assure you that it’s true. Buying direct denies you access to these products.

Private medical insurance is a complex product and this is reflected in the number of specialist brokers that have grown up around the industry.

Related post: The influence of commission on PMI brokers