Buying Insurance Directly Via Internet Becoming More Popular
With more consumers becoming more confident in using the Internet for online shopping needs, more and more insurance companies are choosing to bypass traditional agency structures in favor of direct insurance sales, especially auto insurers. And Cheap Direct Insurance is one of your best tools for buy insurance directly and saving lots of money.
A 2008 study by J.D. Powers and Associates indicates some 44 percent of people buying insurance directly from a new insurer bought it directly through a company Web site or call center. And as people become more accustomed to the Internet, using sites like Direct Cheap Insurance is growing in popularity. Some 41 percent of insurance consumers purchased insurance coverage directly in 2007, and insurance transactions conducted via the Internet account for 21 percent of all new customer sales, according the J.D. Powers and Associates.
A 2009 study by Internet marketing research company, comScore, indicates consumers requested more than 32 million auto insurance quotes via Internet sites, like Cheap Direct Insurance, and bought about 2.4 million auto insurance policies in 2008. A similar study conducted last year by the Insurance Research Council shows about 52 percent of consumers visited an insurance company Web site when shopping for new auto insurance, and 18 percent bought their auto insurance coverage online.
Although the J.D. Powers and Associates’ study suggests more people are shopping online via Cheap Direct Insurance and other sites and cutting out insurance agents to save more money, it also indicates consumers who purchase their insurance through an insurance agent or broker generally are more satisfied with their buying experience.
Many large auto and home insurance companies offer significant discounts of 10 percent or more for consumers choosing to purchase their auto insurance, home insurance, life insurance and health insurance directly from the insurance companies. And many auto insurance companies have embraced direct sales, giving significant discounts of $300 or more when you buy online. GEICO aggressively markets its direct auto insurance sales by claiming consumers save an average 15 percent on their auto insurance premiums by purchasing directly. Progressive Insurance also claims to offer an about 10 percent discount for consumers purchasing their auto insurance coverage directly rather than using a Progressive agent.
While some consumers prefer cutting out the middleman and buying their car and other insurance coverage directly through Cheap Direct Insurance and other sites, doing so means consumers have to know exactly the kind of coverage they need and which options are available. Unless using an affiliate Web site offering numerous insurance quotes from several insurance companies and their agents, consumers must make several inquiries and ensure they are getting quotes for the same levels of coverage and based on the same criteria, which can take some time to do.
And people with special situations, such as recent drunk-driving convictions, might find it extremely difficult to purchase car insurance directly online without submitting additional information or having premium amounts adjusted – or, in extreme cases, policies canceled and premiums refunded for being a substandard risk.
