A growing amount of consumers shop, bank and even buy their vehicle policies online.
Internet insurance companies are a relatively new feature, appearing in the last ten years.
Buying auto coverage through an internet company can be quick and convenient, but it is important to understand the pros and cons.
The theory behind online vehicle policies has to do with price and convenience.
Being able to go to the computer, log in and pay the bill or print id cards is very attractive to most busy consumers.
Also, the billing is almost always paperless, sent directly to the customers email, saving time and money.
In general, web insurance companies are able to charge a lower premium for the coverage because they have a lower overhead.
They are not paying commissions to a field agent and have less general and less staffing overhead which allows them to charge a more competitive price.
The downside to internet policies stems from the lack of a field agent presence.
A large number of people appreciate and prefer having a local agent with whom they can speak to face to face and who is very accessible.
In many cases, cheaper car coverage is not the best auto coverage.
A local agent is able to take the time to understand the individual needs of the customer and to offer the appropriate coverage, not just the cheapest coverage.
Also, online companies almost always specialize in exclusively auto policies.
A local agent will be able to offer package deals which include car, home, boat, life and medical coverage.
In many cases, the discounted package price will be very competitive if not cheaper than the internet price.
Lastly, the manner in which claims are handled can underline the difference between internet insurance and local insurance.
Internet auto insurance companies will generally not have a large pool of claims adjusters to use.
This is a double edged sword.
On the positive side, they are able to offer lower prices because they are not paying out a lot in adjusters salaries.
The downside is slow and sometimes poor service when a customer has a claim.
This will by no means be the case for every claim with an online company, but it is a legitimate concern.
A local agent will usually have access to a large and prompt pool of claims adjusters than can in some cases provide same day service and payment.
Internet insurance companies are a relatively new feature, appearing in the last ten years.
Buying auto coverage through an internet company can be quick and convenient, but it is important to understand the pros and cons.
The theory behind online vehicle policies has to do with price and convenience.
Being able to go to the computer, log in and pay the bill or print id cards is very attractive to most busy consumers.
Also, the billing is almost always paperless, sent directly to the customers email, saving time and money.
In general, web insurance companies are able to charge a lower premium for the coverage because they have a lower overhead.
They are not paying commissions to a field agent and have less general and less staffing overhead which allows them to charge a more competitive price.
The downside to internet policies stems from the lack of a field agent presence.
A large number of people appreciate and prefer having a local agent with whom they can speak to face to face and who is very accessible.
In many cases, cheaper car coverage is not the best auto coverage.
A local agent is able to take the time to understand the individual needs of the customer and to offer the appropriate coverage, not just the cheapest coverage.
Also, online companies almost always specialize in exclusively auto policies.
A local agent will be able to offer package deals which include car, home, boat, life and medical coverage.
In many cases, the discounted package price will be very competitive if not cheaper than the internet price.
Lastly, the manner in which claims are handled can underline the difference between internet insurance and local insurance.
Internet auto insurance companies will generally not have a large pool of claims adjusters to use.
This is a double edged sword.
On the positive side, they are able to offer lower prices because they are not paying out a lot in adjusters salaries.
The downside is slow and sometimes poor service when a customer has a claim.
This will by no means be the case for every claim with an online company, but it is a legitimate concern.
A local agent will usually have access to a large and prompt pool of claims adjusters than can in some cases provide same day service and payment.
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