The ability to buy insurance online has changed the way people shop for insurance, allowing you as a customer to save time and money, and the insurance companies themselves to eliminate much of their huge overhead costs. When shopping and comparing insurance companies and policies online, keep in mind the following:
1. Is your personal data secure?
Find out how long the company you are considering has been in business
and whether state regulators or the Better Business Bureau has registered
any complaints about it. What are security measures like? How will
the company use your information once you enter it on their web
site? Also, make sure that you read the site's privacy policy before
giving up any of your information.
2. Are you confident in this company? Who are you dealing with?
Do your homework! How many carriers does the site represent? In other
words, is does the site represent one insurance carrier, or many
(as an agent/broker typically would)? If you are looking for a quick “in
and out’ quote, fine – the online option can be great
for this since they will usually represent multiple carriers and
can therefore give you multiple quotes all at one time.
3. What will you receive with your quote?
Often, an online quote will really just be a "quote estimate" or "filed
rate", meaning it is a general price that doesn’t take
your unique personal circumstances into account. Filed rates are in
fact general prices that carriers are required to file with each state's
Department of Insurance. Consider this type of quote to be a rough
estimate only. A true online marketplace will offer you "carrier-sponsored
quotes," which are quotes based on your information that a carrier
will gladly honor if you decide to purchase a policy.
4. Garbage in, garbage out…
If you’re only filling out a few general pieces of information,
don’t expect to get multiple, detailed quotes in return. In
other words, the more detail you provide, chances are, the more accurate
the quote. It’s up to you to gauge your comfort level with providing
a little or a lot of information: use your judgment.
5. Can you come back?
Since plain old-fashioned comparison-shopping can literally save you
hundreds of dollars each year in insurance costs, spend some time
looking around. A great benefit of an online insurance site is if
it lets you save your information with a username and password so
that you can come back and retrieve your data.
6. Is help available?
It’s a good sign if a site offers live help by phone or web
chat to help you figure out what you need or answer any questions.