When faced with the need to make an insurance claim, you have two main options: work with your insurance broker or deal directly with the insurer. This choice can significantly impact both your experience and outcome. In this guide, we'll explore both options to help you understand which approach might be best for your situation.
The Emotional Impact of Insurance Claims
Insurance claims typically follow stressful events like:
During these already difficult times, the claims process itself can become another source of stress:
"Dealing with an insurance claim while already managing the aftermath of a disaster can feel overwhelming. Many claimants report increased anxiety and frustration throughout the process."
Option 1: Lodging a Claim Through Your Insurance Broker
The Process:
Step 1: Contact your broker
Call or email your broker to notify them of the incident as soon as possible.
Step 2: Document the damage
Your broker will advise on what evidence to collect (photos, videos, descriptions).
Step 3: Claim submission
Your broker prepares and submits all necessary documentation to the insurer.
Step 4: Claim management
Your broker handles all communication with the insurer and keeps you updated.
Step 5: Settlement review
Your broker reviews the proposed settlement and advises if it's fair.
Key Benefits:
Single point of contact throughout the entire process
Expert guidance on policy coverage and documentation requirements
Time savings as your broker handles insurer communications
Stress reduction during an already difficult period
Advocacy from someone who understands policy terms and your rights
Option 2: Dealing Directly with the Insurer
The Process:
Step 1: Contact the insurer
Call the claims hotline or use the online portal to report the incident.
Step 2: Document the damage
Gather evidence according to the insurer's requirements.
Step 3: Submit your claim
Complete all necessary forms and provide supporting documentation.
Step 4: Follow-up management
Monitor the claim's progress and respond to any requests for additional information.
Step 5: Settlement assessment
Review the proposed settlement independently.
Common Challenges:
Multiple contacts – dealing with different representatives at each touchpoint
Repetitive explanations – retelling your story with each new contact
Time constraints – managing communications during business hours
Self-advocacy pressure – navigating technical policy terms while under stress
What Happens When Claims Are Disputed?
With Direct Insurers:
If your claim is denied or the settlement is unsatisfactory:
You'll need to navigate the Internal Dispute Resolution (IDR) process yourself
If IDR is unsuccessful, you must prepare and lodge an AFCA complaint
You might need to consider legal action at your own expense
With a Broker:
If problems arise with your claim:
Your broker can immediately challenge decisions based on policy knowledge
They have established relationships with senior claims managers
They can represent your interests through formal dispute processes
You remain shielded from much of the conflict and stress
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Making Your Decision
While managing claims directly might initially seem simpler, consider:
Your available time to manage the process
Your knowledge of insurance policy terms
Your emotional capacity to handle potential disputes
The complexity of your particular claim
For most people, especially during significant claims, having a professional broker advocating for your interests provides valuable peace of mind when you need it most.
From finding the right cover to managing your claims, we’re with you, at every step.  Contact Gardian Insurance Brokers in Mackay today to learn more about our brokerage and claims support services.
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