Direct Car Insurance
Direct insurance is insurance without an insurance agent. You purchase insurance directly through the insurance carrier. Direct insurance is also known as online insurance, and it is not new. Millennials, in particular, have taken to direct insurance because of their comfort level with online purchases.
Often, you can also save money by buying car insurance online, because there are fewer people involved — which means fewer people taking a cut of the profit.
How Does It Work?
You might imagine that direct insurance, like some spooky space-age technology, can operate on a single server in a dark warehouse, humming along without any human touch. But actual people do still work behind the scenes at direct insurance carriers — and not just in marketing, sales, advertising, and finance.
You can still speak to a licensed insurance agent. In fact, you’ll have a whole team of qualified insurance agents at your disposal; it will just never be the same one. Getting a car insurance quote from a direct insurance carrier usually takes place online, plus you can get help over the phone or in an online chat. Direct insurance carriers essentially cut out the middleman. They often allow you to write, access and maintain your own car insurance policy.
Who Is Buying It?
Online insurance companies are popular among younger generations of drivers who are not already loyal to an agent and are more comfortable with conducting business online and without speaking with a human. They like purchasing and managing their own policies on their own time. The market is expanding and more people are checking into direct insurance carriers. The convenience is notable. It is going to be tough to call a local insurance agent at midnight and purchase a policy or to inquire about a claim, or report an accident and ask advice.
Some direct insurance carriers target a specific market some of which are an older crowd. Hartford targets senior citizens and USAA targets the military. They give discounts specifically to their target market, which makes them worth checking into if you qualify.
Where Can You Buy It?
Well, you certainly can’t wander into your local insurance office, but you can wander around the internet if you know what to look for. Direct insurance’s most popular method of selling car insurance is online. Log onto the insurance carrier’s website you are interested in, input your information, and receive a quote. The more detailed the information you input, the more accurate your insurance quote will be.
Have a question about your direct insurance policy? Direct insurance carriers offer online chats or phone calls with insurance professionals. It does not hurt to have an expert review your information to make sure to have everything set up properly.
These are some of the most popular direct insurance carriers (in alphabetical order):
Do Your Research
If you find a great quote for online insurance, it pays to do a little bit of research to make sure that the company is one you want to do business with. The first step, according to the Insurance Information Institute, should be ensuring the company is licensed as an insurer in your state. Your state’s insurance division has a list of companies that can legally do business in your state, as well as a list of reviews or any complaints.
Should You Buy It?
Whether or not to buy car insurance direct is a personal decision. Some people love it while others would never even think of it. You should go with a policy and insurance carrier you are comfortable with managing your policies. There is certainly a place for direct car insurance carriers in today’s market, but it is still not beating out agents as the most popular insurance provider. Research is your best option when it comes to deciding on an insurance carrier. Quote, compare, and look into customer service for each insurance carrier you consider.