Auto insurance quotes through websites now more acceptable
For many years, consumers were worried about the possibility of identity theft and fraud if they used the internet for shopping. They were deterred by stories of scams like sites offering fake drugs for sale. Today, the use of mobile technology has grown and people are far more comfortable to shop online and use 3G cell phones to authorize the payment of bills. This does not mean that all attitudes have changed. For decades, people have been used to talking over their insurance decisions with a local agent. Indeed, some auto insurance companies still insist on the final sale of a policy being through an agent. Since buying insurance can involving paying quite large installments, face-to-face contact felt better because people could be reassured they were making the right decision. However, a recent survey has found more people now feel comfortable in asking for their auto insurance quotes online and dealing with the purchase transaction through email, chat sessions, the telephone and other distance shopping methods.
In 2011, the insurance industry reported a 6% increase in the number of policies bought online with almost 70% of those surveyed reporting that they had used sites like this to get online quotes. For the insurers, this saves money. Administration can be through central office facilities and call centers instead of having to rely on people making appointments to meet with clients. These savings can be passed on to keep car insurance rates lower.
There is one significant feature to the survey results. Even though it usually makes economic sense to change the car insurance company you use, the number who actually switch and so save money, remains small. To be clear, even though your current company may give you a loyalty discount, there are almost always competing companies offering better car insurance rates (plus the welcome bonus, of course). This is a real problem. If more people were prepared to switch, this would encourage competition and force an improvement in service standards. By refusing to switch, people are condemning themselves to higher rates.