5 Tips On How To Have A Good Negotiation With Your Insurance Broker

Negotiation is one constant and important aspect of life. The relationships we form with other people are also grounded in negotiation. Even though we don’t label relationships as negotiations, the aspects that build a solid and healthy one, are formed via a good agreement.

According to Oxford, a negotiation is a form of discussion that aims to reach an agreement. Every choice, decision, and plan we make with other people is built through negotiation. In business, this is a very important aspect. A lot of partnerships are formed by trusts. If one party betrays or withdraws from a discussed negotiation, things can start to fall apart.

Insurance is one of the fields that not a lot of people are well-versed in. Let’s be honest, insurance can be intimidating and overwhelming when you know nothing about it. Insurance brokers exist to help and guide clients in understanding the right plan that suits their needs.

But, the question is, how do you build a good negotiation with your insurance broker? To ensure that both the client and the broker will have a win-win situation, here are 5 tips on how to have a good negotiation. 


1. Know what you want to achieve from the meeting

As a client, it’s important to know what you want to achieve from the meeting. Of course, at first, you’re still at the scouting and learning the different options that were given to you stage. But, that doesn’t mean you don’t know what you want. It is likely that you already have a ‘goal’ in mind, even though it isn’t solidified yet.

The purpose of you hiring an insurance broker is to help you understand insurance. That means you came into this ‘partnership’ with your broker to be able to get a plan that suits your plans. Your goal is to get a plan that works well with what you want. In short, you know what you want to achieve not only from the meeting but the entire process. 

If you are just scouting, let the insurance broker know. That way, both of you could understand where the process would end. It will also save both of you time instead of going in circles without achieving something.


2. Tell them what you need and be open with your plans

One thing to know is that your broker needs to know what your needs are. For them to provide you with the best options that would align with your plans, they need to know your needs. It’s important to be open with your plans. Let your insurance broker know what you plan to do with your insurance and how you’ll make use of it.

Also, if you have dependents and beneficiaries, let your broker know as well. That way, he’ll understand better why you have the needs and plans that you have. It will also be easier for them to amend and tweak some existing plans to meet your demands.

3. When discussing your budget, give them a concrete amount and not just a range as much as possible

Discussing budgets and prices in range only makes things look vague and unsolidified. It comes out like you’re only testing the waters but don’t have any plans to dive in. Here’s the thing, if you don’t give your broker a concrete amount, likely, they won’t give you one as well. 

If you provide them with a budget in range, the chances that they’ll provide you with plans in estimates are high. Let’s be honest, providing numbers in ranges only makes things complicated. Also, it shows how unsure you are of your decision about the application.

To make things easier not only on your end but also on your insurance broker, give them a concrete budget. That way, once you have the exact amount of your monthly premiums and payouts, it will be easier for you to map out how to allocate your funds to your insurance plan. You’ll also likely gain your broker’s trust by being open and transparent with how much you’re willing to spend.

4. Let them know your expectations

After you let your broker know about your plans, let them know about your expectations as well. Let’s say, you’ve already discussed your desired monthly premium for a certain plan. After your broker gives you a breakdown of how much you’ll be spending monthly, it’s best to let them know your insurance expectations.

It’s absurd to assume that you don’t have any expectations because, let’s be honest, everyone who has insurance expects to get the most out of a plan. If you’re applying for one, you’ll likely have the same expectations. 

Before you seal the deal on a certain plan, let your broker know your expectations. You can simply start by asking questions. Ask about real-life scenarios and how your insurance could help you in those times. Also, ask your broker what would happen if ever you miss out on any monthly premiums and what can you expect if ever that happens. 

Remember, it’s best to know what to expect so you can prepare when an accident or misfortune that you didn’t see coming happens. 

5. Listen to your broker 

Last but not least, listen to your broker. Most probably, throughout your insurance application process, you’d spend more time discussing your needs than digesting what your broker is saying. It’s quite hard to digest too much information all at the same time. Especially when you want to deliver your intentions and wants first. 

Do you know when people say that communication is the key? That’s true. But the real deal that makes a negotiation great is the skill of both parties to listen. Not just hear what the other says, but listen. If you have other opinions or ideas from the ones your broker has, let them know.

Clarify the things that you don’t understand. Listen to their advice and take them seriously. Try not to be stubborn and disregard their advice. Since you already have the privilege to apply the advice that a professional has given you, make the most out of it. Listen to understand so you can make the most out of your insurance plan. 

Good negotiation is the key to a great insurance plan

As you apply for your insurance, practice these tips when you negotiate and discuss with your broker. With these, there’s no doubt that you’ll be able to fully understand and get the best plan that would work well with your budget, plans, and goals. Your broker will surely be able to offer you the right plan that you can utilise when the time comes you’ll need it most. 


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