| Online car insurance |
| Written by Henry Johnson | |
|
Purchasing an online car insurance is becoming an increasingly popular option for savvy consumers looking for convenience and economy when buying coverage for their automobiles. In the past, most customers purchased automobile insurance through local agents. These business arrangements were largely built on personal relationships built between the agent and the insured, and the insured often purchased other coverage such as home and life policies from that insurer. Recently, consumers are increasingly turning to the World Wide Web to simplify a wide variety of life tasks such as banking, paying bills, and even Christmas shopping. The Internet age has made the world smaller and more mercenary, and more customers today are shopping online for policies, eschewing brick and mortar local agencies for the convenience of shopping and comparing rates online. According to a study done by J.D. Power and Associates last year, about one-fifth of new customer insurance sales were processed entirely on the Internet. This trend is expected to increase as Internet access becomes nigh ubiquitous in the near future and customers increasingly see the ease and availability of purchasing auto insurance online. Time-saving Web sites such as OnlineAutoInsurance.com can help insurance shoppers with just about every aspect of their coverage needs. Such sites can quickly and easily provide a variety of quotes from solid insurers which shoppers can peruse and compare. Many of these sites allow shoppers to compare rates for free and don't require membership fees. Major insurers such as GEICO and Progressive are no slouches when it comes to their online business either. A variety of insurers provide quick and easy online shopping to allow consumers to determine their insurance needs and purchase a policy. Some even allow potential clients to compare quotes against competing insurers. The one major drawback of purchasing insurance online is that the client is completely on his own. There's no agent to recommend policy amounts or deductible limits, and some customers may make a mistake in choosing a policy that does not best meet his or her insurance needs. Just because the monthly payment on a high deductible policy may be low, that doesn't make it the best policy, as many customers have unfortunately discovered after getting into an accident. Also, not having enough coverage may expose insureds to lawsuits if they have substantial assets but little coverage. Under the old system, insurance agents, professionals with many years experience in the field, made policy recommendations that best fit their clients' income and needs. In the new Internet economy, where insureds make these decisions themselves, an old adage may have new credence: caveat emptor, let the buyer beware. Another potential drawback of purchasing insurance online is identity theft. Luckily, many insurance Web sites only require very basic information to get premium quotes, excluding sensitive personal information such as driver's license numbers and Social Security numbers. One of the key benefits to consumers from the increasing trend of online shopping is lower prices. As insurers are forced to compete more directly with one another because of consumers new ability to quickly compare prices and shop around, market forces will require them to lower their prices to secure a larger share of business. Current economic conditions are also adding to this trend. The recession is cutting into insurer profits, forcing them to be more clever and creative in what incentives they offer consumers. In summary, purchasing car insurance online is a growing trend that offers customers greater choice and greater savings, but clients should be cautious in choosing policies and make sure they purchase sufficient coverage for their insurance needs. |
| < Prev | Next > |
|---|
