In recent years, a number of insurance companies have risen to prominence by marketing their products online rather than through agents. A great number of people seem to be confused about how the online auto insurance offerings differ and are similar to regular insurance policies. Let's take a look at some of these differences and similarities.
The biggest and most noticeable difference between online auto insurance and the policies you buy from a local agent is price. Insurance agents do not receive a fixed salary from the companies they represent. Instead, they receive a percentage of the price of each policy sold as a commission, then a smaller percentage of each renewal premium paid. The net result is that most traditional insurance providers must charge a higher premium to cover the commissions paid to the agents.
Online auto insurance companies, on the other hand, do not generally employ agents to sell their policies.
Their offices are not set up for public visits because they deal with clients directly over the internet. With this reduced overhead, it is almost always less expensive to purchase insurance online than from an agent.Many feel that the customer service offered by online insurance companies is not up to the level of that offered by most insurance agents. In some cases, this is true. However, in most cases, you can reach a representative of the online insurance company by calling a toll free number or by email and get a swift, personal response.
A lot of people question whether online auto insurance provides the same level of coverage as the policies sold by agents. The answer is yes, they have to. Most states have mandated certain minimum insurance coverage that must be maintained on a vehicle in order to operate it legally on the roads.
Online insurance companies are required by law to offer this same level of coverage to meet the state minimums.Most go beyond the minimum coverage limits and allow you to choose the level of coverage you desire, just like an agent would do. Of course you pay extra for the additional coverage, but you would do so with a traditional policy sold by an agent as well.
Claims service is normally at least as good with online companies as with traditional insurance. It would be very unusual for an insurance agent to also be the one to handle a claim. Most companies have regional offices where claims adjusters are stationed and respond to calls on an as needed basis. This is just as true for traditional insurance companies as for online insurers.
Auto insurance is one product that we all have to have, but hope we never need. For this reason, looking for the cheapest insurance rates is often a good way to save money. Many insurance companies have started offering their products online exclusively rather than selling through agents. A comparison of online auto insurance and traditional insurance sold by an agent reveals that the two products are virtually identical in all respects except price. Online insurance is often considerably less expensive because the insurance company has lower overhead to cover with the premiums they charge.
Tips on how to compare online auto insurance and regular insurance, now available with the press of a button on http://www.onlineautoinsurance.com/
No comments:
Post a Comment