Auto Insurance

Faster, Cheaper, Simpler

Why Go for Online vs. Offline Insurance Quotes

With the country-wide availability of broadband Internet, more and more companies in all fields and industries are building a strong online presence. We are living in the digital era and no insurance carrier can remain competitive without offering a wide range of online services. This article will discuss the benefits of shopping online versus the old fashioned way of buying insurance in an offline office.

Online quotes

The Internet means so much more than Facebook and chatting with your friends. We are living in the online shopping age, and we can buy everything from pizza to real estate without leaving the bedroom. But shopping online for auto insurance means a lot more than comfort and time saved:

  • You get to compare offerings head to head. If you are to query each insurance company individually, you will have to fill out one form for each, and, since no two companies sell the exact same package, comparing quotes may be tricky. You could be lead into believing that a certain company is cheaper than the rest when, in fact, they don’t offer the exact same coverage.
  • You can get quotations from more companies. If you live in a large metro area then you probably have access to all major players on the market. However, not everybody lives in downtown LA, and rural zones or suburbs leave you with a narrower range of choices. Did you know that GEICO only has a few hundred offline agencies across the country?
  • You have access to better discounts. The competition is harsh in the online world, since all players are literally at a few mouse clicks away. All insurers strive to acquire a larger market share and steal others’ customers, so they have to offer good rates. In the offline world, however, some companies or offices may have a monopoly over a geographic area and set their own prices.

All these will lead to better rates and might save you a small fortune over the lifetime of a policy.

Offline quotes

If you would rather talk to a live person, most car insurance companies have offline agencies. It’s recommended, however, that you try to get a deal from an independent insurance broker who represents many insurance carriers. This would ensure that you get a fairly accurate view of the market and what a wider range of companies have to offer, rather than narrowing down your scope to products promoted by one single insurer.

Keep in mind, however, that offline brokers may be biased towards promoting packages from the insurer who pays the best. If, for instance, that office gets a 3% commission from Allstate and 5% from GEICO, they will do the best to sell you insurance from GEICO because it puts more money into their pockets and more food on the table, even though an Allstate policy might suit you better. If you insist on shopping offline, make sure you get quotes from a handful of brokers.

Further Reading