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Researching and
obtaining insurance online is much easier today. Many websites now
offer comparison tools that will provide quotes and coverage information
(some of these sites are listed below). Keep
in mind if you choose a carrier from these searches, you will then be
contracting with that carrier for your insurance, not the original site.
This will either be done by forwarding you to the carrier's website or
the comparison site will forward your information to the insurance
company and they will then contact you. Many insurers still prefer
to have a representative call you and discuss your coverage over the
phone. Although not the same as meeting with a personal insurance agent,
it allows them to make certain you understand the coverage provided.
Also, because buying insurance online is new, many companies believe
that individualized customer care is still the best way to get your
business and a follow up call still provides some of this customer
service.
The Pros
There are many benefits for utilizing online insurance:
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Easy comparison shopping: Using
insurance comparison websites you can compare coverage and prices on
almost any type of insurance. You can also browse the
individual insurance carrier websites once you have narrowed your
search. Almost all companies now have libraries and tools for
you to learn more about their services online.
-
Your time is money: Shopping for
insurance online can be done at any time of day. It is hard to
get time away from your daily schedule to sit down and comparison
shop with insurance brokers, or indeed, individual agents.
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Low pressure: Let's face it,
many people find it easier to stand firm without the
person-to-person contact. Users feel they can be more savvy
and better informed when every option is at their fingertips rather
then relying on an agent's account.
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Save money: Due to the time
needed to comparison shop, the pressure to stay loyal with one
company, and the uncertainty about other companies, some may lose
money by staying blindly loyal to one insurance carrier. The
online market allows for easy comparison shopping, less pressure,
and research tools to learn more about other companies. By
becoming well informed, you can either work out a better rate with
your current provider or move to a new provider who offers better
coverage for your dollar.
 The
Cons
Be aware of these complications when purchasing
insurance online:
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Understanding coverage options:
Without an agent to explain 'insurance speak' you may not know all
the coverage you may need. This is especially the case for
those getting insurance for the first time. However, if you
have discussed options with an agent before and have a generally
good idea of the type of coverage you will need, this may be
something that is manageable with a little extra research.
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Is that quote really a deal: All
quotes may not be equal. Take care to examine all the coverage
included with quotes. The online quotes may help you narrow
your search, but should not be taken at face value as not all
companies offer the same 'comprehensive' coverage.
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Buying insurance coverage in your
state: Not all states will allow you to purchase insurance
online. Some allow you to get quotes but still require you to
meet with an agent before signing any contracts. Also, because
the internet clouds locality, you will need to make sure the
insurance carrier is licensed in your state.
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Individual customer care: Do you
really want to push 1, then 2, then 4 to talk to someone about your
insurance coverage? Working with a local agent still offers
the advantages of individualized customer service. This agent
can offer coverage that speaks to your locality as it is more likely
they live in your community. They will also have a better
knowledge of the coverage their carrier provides and can help you
understand all of your options. They may also be aware of more
discounts available to you that you may not know to ask for online.
In this way they can offer better individualized care.
Whether you choose
to shop for insurance online or not, you should look at your insurance
carrier websites. Insurance carriers now offer detailed
information about coverage online. In fact, once you have settled
on a carrier you can often answer coverage questions, pay bills, get
updates on claims and find useful tip sheets and information on how to
better protect yourself and your property. A primary example of
this is your health coverage. Most health insurance carriers still
prefer you to sign up through your employer or an agent. However,
once you have your coverage, they offer information about doctors,
medical options, prescriptions, and claims. Considering health
care is one of the most complex types of insurance used, their
increasing online presence is an invaluable tool. To explore
online insurance options more, please see the links below. |
When purchasing any product online you always
want to make certain it is an authentic website representing a
verifiable company with a good reputation. Here are some tips
for a safe and rewarding online shopping experience:
- Be assertive in getting answers about
an online company you have not worked with before. Learn
as much as you can about them and ask tough questions.
Check reviews online, in magazines, with your
Secretary of State/Attorney General, the
Better Business Bureau, or by word of mouth.
- Call them up and talk to their
customer service. If they don't list a contact number be
careful.
- Review posted company information,
policies and the privacy policy. If they do not provide
this online, you can move on or call them up to ask why.
- Make sure any payments are made in a
website with https or other secured system.
- Keep a printed copy of every online
transaction.
- Consider using one credit card for
your online purchases/payments. This way you know which to
cancel in case of fraud. Also, make sure the card is not
linked to any bank account. Some prefer getting a pay as
you go credit card for any online transactions. These can
be found at any grocery store and can be refilled as needed.
- Keep your computer updated with
anti-virus software, browser updates and spyware programs.
- NEVER provide personal information
from an email they supposedly sent to you. This is a
common phishing scam. Everything in the email will look
legit but lead to a false site collecting your information.
Instead call the company with the number on your contract - not
the number given to you in that email!
- Initiate contact yourself. Go to
their website yourself from the address they gave you on your
contract. To be on the safe side, never go to their
website from an email.
- Don't give account information to
anyone. Your online providers have this information and if
anything will be emailing you a forgotten password - never vice
versa!
- Change your account passwords often;
every six months to once a year. Use strong passwords with
numbers, symbols, changes in case and at least 6 characters.
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