The Internet changing the way to buy products online instantly!
The Internet today, has changed the way insurance is sold. Whereas in the past, before the Internet became a household feature, life insurance, Auto insurance, travel insurance, home insurance, business insurance or for that matter any type of insurance was sold by real people, Insurance agents.
Insurance agents who you would either meet in their office or in the comfort of your own home and buy insurance coverage as per your requirements. Insurance agents would take the time to explain the various policies and work out your payment schedule for paying your insurance premiums.
With the widespread use of the Internet today, insurance companies have started selling insurance directly to consumers. The insurance companies when selling insurance online save the cost of paying salaries or commissions to insurance agents, however, do you really think they pass these savings on to their customers?
Should you be buying insurance policies online or buy insurance from insurance agents or insurance brokers? Here are some tips and information to help you make your own informed decision. Before going further let me explain that while an insurance agent may represent a particular insurance company he or she has been hired by, an independent insurance broker is free to represent many insurance companies.
Online Insurance Companies Versus Insurance Brokers
- When you buy insurance online the chances are that you do your own research as to the best policy that is suitable for your needs. The onus is on you to read the fine print and with the click of the mouse agree with whatever the insurance companies have written in their policies.
- On the other hand when you buy insurance from an insurance broker, your broker will shop the market for you to get the best rates for your insurance needs. Insurance brokers can give you insurance quotes from several companies and provide a wealth of knowledge when it comes to insurance. While it is always smart to read fine prints in policies personally, brokers have read policies of the companies they deal with and can explain policies to their clients before signing them up.
- When dealing directly with one insurance companies you do not have the advantage of comparing rates of other companies offering the same insurance coverage. You would have to call most companies by yourself to get their rates and then compare.
- Your broker, on the other hand, will readily have quotes for you from several insurance companies. You end up saving time and perhaps even money.
- If God forbid, you have a claim and you are insured directly with an insurance company, you have to file your claim with the company yourself and hope for the best. What I am trying to say is that you represent yourself when you have an insurance claim.
- Your insurance broker who sold you the insurance will on your behalf notify the insurance company usually of any claim you may have. Brokers normally also follow up service and you do have someone representing your interest in the insurance company. As insurance brokers provide business to insurance companies, they believe it or not do have a certain amount of clout when dealing with insurance companies. After all, they always have the option to recommend another insurance company to their clients if a particular company continues to cause problems for their insured clients.
Some people think that they actually save money when buying insurance directly online. They believe they are cutting out the middlemen here and if they went to an insurance broker they would have to pay extra. This is not true as insurance brokers can usually offer you better deals. They have a vast database of rates from various companies and they can shop around on your behalf to find you better rates.
PLEASE NOTE: This website does not represent any insurance company or insurance brokers, Readers are free to make your own decision when shopping for insurance. However, the chances are you will find better service and insurance rates if you opted for a good insurance broker.