Broker, insurer, bank or comparison site: where to buy

Key rules

• Independence: Only a broker is independent and acts for you; agents, banks and direct sellers represent one insurer or a limited group.
• Price: The premium is normally the same whichever channel you use, because sellers are paid commission by the insurer.
• Bank bundling: A bank cannot force you to take its insurer, and health insurance is not generally required for a loan.
• Cancelling: Closing a bank account does not cancel a policy bought through the bank.

The short answer

A broker is the only seller that is truly independent and acts for you. Agents, banks and direct online sellers each represent one insurer or a limited group. The premium is normally the same whichever channel you use, so the real difference is who advises you and how many insurers they compare.

Broker (corredor de seguros)

A corredor de seguros works for you, not for an insurer. A broker must analyse the market, or tell you what it does analyse, and must advise you based on your needs. Brokers must carry professional liability insurance.

Brokers do not usually charge you a fee for health insurance. They are paid a commission by the insurer, built into the premium. A broker may charge for advisory services only if you agree it in writing beforehand, and it must be shown separately.

Exclusive or linked agent

An exclusive agent sells for one insurer. A linked agent sells for several, but not the whole market. The insurer is responsible for what its agents do. Expect a useful explanation of that insurer's products, not a comparison of the whole market.

Your bank

Banks sell health insurance as agents, usually for an insurer in the same group. The bank is not the insurer, so check who the actual insurer is, then read the cover, waiting periods and exclusions.

Watch for bundling. A bank may offer a cheaper loan or mortgage if you take its insurance. That is allowed only if the link is disclosed and the discount is real. The bank cannot force a particular insurer, and health insurance is not generally required for a loan. Ask whether you can choose a policy from another insurer and keep the discount.

Closing your bank account does not cancel the policy. Premiums are paid by direct debit, so tell the insurer in writing that you are cancelling and stop the debit at your bank.

Direct from the insurer online

Direct sellers offer only that insurer's products, with no personal advice. They must still give you the pre-contract information and the Insurance Product Information Document (IPID). Some insurers give online-only discounts, such as reduced premiums for the first months, so this channel can sometimes be cheaper. Compare the online price with a broker's quote for the same cover.

If you buy remotely, you can usually withdraw within 14 days of buying an individual health policy. The timeline below shows the steps.

Comparison sites

Comparison sites are usually free to use. Many are registered brokers or agents. They show only the insurers they have commercial agreements with, so they may not show every insurer or product. Check the site's registration with the DGSFP before you use it.

Which one to pick

• Want independent advice and a market comparison: use a broker.
• Know the insurer you want: buy direct or through its agent.
• Already bank with a group that sells insurance: compare its offer with others before accepting, especially if a loan discount is attached.

Whichever you choose, ask how the seller is paid and ask for the IPID before you decide. Use the checklist and the side-by-side comparison below.

Choosing between options

Which channel should you buy your health insurance from?

• A broker (corredor de seguros): You want independent advice across several insurers. A broker acts for you and is the only channel with broad independence, usually at no extra cost to you.

• An exclusive or linked agent: You already know the insurer you want. An agent represents one insurer, or several but not the whole market.

• Your bank: You want to deal with one office you know. The policy comes from a group insurer, so check the insurer and cover, and do not accept it as a condition for a loan.

• Direct online from the insurer: You know what cover you need and want to compare prices. You get no personal advice, but online-only discounts can make it cheaper.

Choose a broker if you want independent advice, buy direct if you already know the cover and want the lowest price, and treat a bank offer as one quote among others.

Compare buying channels side by side

The channel changes who is on your side, who pays, and how much help you get. None of them replaces your own lawyer and a check of the property.

How to use this

• Start online, then pick a route. Listings show you what exists. The channel you then use decides who you deal with.
• Ask who the agent works for. An agent paid by the seller is not neutral on price. If you want someone on your side, hire an agent or adviser who acts for buyers.
• Ask about fees at the start. Whichever channel you use, get the amount, who pays and when in writing before you sign anything.
• Use your own lawyer in every case. In direct and bank sales, nobody on the other side advises you. A lawyer who works only for you is your protection.

Fee rules and practice differ by region and by seller, so confirm the details for the property you are looking at.

Timeline and deadlines

• Tell the insurer in writing that you are cancelling the policy: at least 1 month before the annual renewal

• Stop the direct debit for the premiums at your bank: at the same time as you cancel, since closing your account does not end the policy

Checklist

• Ask the seller whether it is a broker, an exclusive agent, a linked agent, a bank or a direct insurer seller.

• Ask which insurers the seller compares, and whether that covers the whole market.

• Ask how the seller is paid and whether it charges you any fee.

• Ask for the Insurance Product Information Document (IPID) before you decide.

• Ask a bank whether any loan or mortgage discount depends on taking the insurance, and whether you can choose another insurer.

• Check a comparison site's registration with the DGSFP, the official insurance regulator, before you use it.

• Compare the price from the direct insurer's website with the broker's quote for the same cover.

Frequently asked questions

Does a broker charge me extra compared with buying directly?

No, a broker does not usually charge you a fee for health insurance, because the insurer pays the broker a commission that is already built into the premium. A broker may charge for separate advice only if you agree it in writing beforehand, and it must be shown separately.

Can buying directly online be cheaper than using a broker?

Yes, buying directly online can sometimes be cheaper, because some insurers offer online-only discounts, such as reduced premiums for the first months. Otherwise the premium is normally the same through a broker, agent or comparison site, and comparison sites are usually free to use.

Do comparison sites show every insurer?

No, a comparison site does not always show every insurer or every product, because what it lists depends on its own commercial agreements. Many are registered brokers or agents, so you can check their registration with the DGSFP, the official insurance regulator.

Does closing my bank account cancel a health policy I bought through the bank?

No, closing your bank account does not cancel the policy, because the policy is with the insurer, not the bank. Notify the insurer in writing at least one month before the annual renewal, and also stop the direct debit for the premiums.