Buy Auto Insurance by Going Direct
People used to turn back, and then they realized the best way is to Go direct to get insured for their home, house, life, and car. One of the oldest and tradition-laden businesses in the United States is Insurance. Many large insurance companies date back to the mid-1800s. Met Life, for example, has been selling life insurance products before the automobile and even the telephone was invented.
In some areas of the country, select insurance carriers had a near-monopoly on insurance policies for decades. The insurance industry sold insurance the same way decade after decade, and that was through sales agents. If a consumer wanted auto or home coverage, there weren’t any options other than the local insurance company.
Internet Open the Possibility for Millions of People for Going Directly with the Insurers
In the mid-1990s, one of humankind’s significant technological transformational changes occurred, the internet. The internet has given the power to the consumer once they go directly to buy insurance online while choosing the price and service desired. In less than twenty years, nearly 75% of Americans are now online; this has caused a tidal wave of disruptions throughout numerous industries, insurance notwithstanding.
This power shift back to the consumer has forced the old insurance companies to rethink how they do business. The result is insurance prices have come down significantly. The insurance shopper can now get the best rate for their desired coverage.
Go Direct Insurance Versus Agents
There are two basic options you have when buying insurance. The first is to contact a large insurance company and have one of their agents sell you a policy. The second option is to go direct to buying insurance and bypass the agent, which often results in a lower price. Some people, particularly older senior consumers, still prefer the standard way of purchasing insurance. Older adults prefer face-to-face with an agent.
However, the new generations go direct; they prefer to get nearly everything directly online, including insurance. Most of these young consumers do not want to talk to some experienced 45-year-old insurance agent. They want several quotes online and to buy their insurance directly and at the price they want.
Let’s look a little deeper at the good points along with the bad points of each option. First, let’s look at what I refer to as the agent experience. The main advantage of going through an agent is getting qualified advice from an expert. A good agent will assess your insurance needs. A good agent comes up with a policy that should protect you adequately, all the while at a fair price. Often, an agent will visit you personally at your home and review the options that fit your budget. Many people are just merely bewildered by insurance terminology. People prefer to have an experienced professional guide them through the process.
Ensuring Multiple Things
Also, suppose you have many assets that need to be insured, such as multiple properties, several cars, and even a business that needs to be covered. In that case, it might make sense to go direct and talk with a pro who can bundle your coverage under one company and find your savings simultaneously. You might be able to save money with an agent as opposed to buying direct by bundling all your coverage together and smartly asking your agent for a discounted price in the process.
Another primary benefit of an agent is if a crisis occurs, such as an automobile accident or flood; your agent can provide immediate assistance. In a situation, people find reassurance in a helpful agent who can assist them in the claim process and help expedite the money.
Agent Negative Aspects
The negative aspects of going through an agent are they usually have their interest in mind and want to generate the maximum commission from you. Many agents will try to add expensive overlapping coverage that might be coverage that you do not even need. This is an inherent conflict as you want to save as much money as possible.
For example, let’s say you have a current covers membership with an automobile club that towing costs. An insurance agent will almost certainly try and add this to your policy because it is a money maker for them, so beware of overlapping coverage. What is the best advice? Just inform yourself of doing business directly with an agent. As they say, knowledge is power.
Car Insurance Companies in the USA (Infographic Video)
When purchasing car insurance, it is wise to get a list of car insurance companies first.
Go Direct Insurance Pros and Cons
The main advantage of buying insurance direct is pricing. The ability to review and compare multiple insurance quotes gives you: your best options and a front-row seat to the lowest insurance prices available nationally. People like buying online for some reason: privacy, cost, control, and also because it is just so much faster than through an agent.
Several new car insurance providers, such as Esurance, do not have any agents and only sell their insurance products online. You can get a direct auto insurance quote online without ever talking to anyone. This streamlined approach to coverage has brought costs down dramatically, and these online insurance carriers are experiencing tremendous growth.
If you have a car but not insurance, and if you still prefer to talk to an agent, try getting an online quote first, so go direct. They have all the old companies, such as State Farm, nervous and rethinking their business model. After you get quoted, speak to your agent and see if they will match the online quote. If they cannot, you may cut ties with the officer.
The primary con of getting direct car insurance is the service
If you have any questions about insurance or don’t understand the billing issue or claim, you will not get that one-on-one agent relationship. You also might not get that Christmas card in the mail every year from your agent, but saving money is more important than a generic card.
So, what do you think about direct insurance coverage versus the old agent way? As suggested, get an online quote now and compare rates for yourself. The savings can be as much as 40%, so if you are into saving money, get your quote now and see how much you can save if you go direct.