FAQs

Buying insurance has always been a tricky situation, with limited options due to a small number of agents in your area and various other obstacles. The massive growth on the Internet has seen a proliferation on online agencies that offer more choice to the consumer and faster support. Even with these considerations in place, many people are still wary of buying such an important product online.

Some people don't understand the advantages

As difficult as it is to comprehend, some people are still not aware that online insurance quotes are much more likely to find a cheaper solution for you. Sure, software can be skewed towards certain suppliers of insurance, and paid results are common - but with an insurance search engine, you will find the best price for your money's worth.

The simple fact of the matter is that you are shown all available carriers and their prices relative to your situation. There is no agent trying to make you buy from a specific vendor because they get larger bonuses - you are given more choice. It's a decision based on your criteria, and not someone else's - someone who is well paid to tell you who to buy from.

But is it faster?

Sure! Online insurance sellers will be able to generate a policy quote much faster than your local agent. Just think of the online merchant as an agent that does not get busy, has no need to schedule an appointment and does not take vacations. They are always there to help you - no matter what you need! The online insurance salesman will also have an automated system that will get your cover up and running faster.

OK... so when will my coverage start if I purchase a policy online?

This will all depend on the seller, the type of policy and the insurance company you choose.  All policies have a "beginning of coverage" date, so make sure you online insurance seller provides this. It is possible to print out proof of the coverage start date on most online insurance selling sites.

Fine, but I still want to speak to a human being!

No problem! All insurance sellers - whether they be online or offline - are required by law to use registered insurance agents to sell you insurance. The difference is that when you are online, you will most probably be contacted via email or a chat system. The agent is "hidden" behind the website - but they do still exist.

With technologies such as VOIP and video-conferencing, you can have as personal a relationship with your online merchant as you had with your offline one. The only difference need be that you can get the quotes quicker and easier than by going somewhere physically.

So how do I know what is covered and what isn't when purchasing insurance online?

Good question! The reason its a good question is because the merchant you are considering buying from might not list what is covered and what is not. If this is the case - simply email them or phone them. If they are still reluctant to provide you with that information, simply find another merchant. The Internet is full of companies that want your business and will bend over backward to receive it! Do not let yourself become a victim - find another merchant.

What about the safety of my confidential information?

This is where you should make sure you use a reputable online insurance company. They will store your information securely and wont let it out of their databases. However, you should always read the privacy policy of the site you are suing, just to make sure that your information stays with you - and never goes to a miscellaneous third party.

So do I have to file claims over the Internet as well?

Another good question! Many people are put off the idea of getting insurance online because they think that filing insurance claims over the Internet could pose a risk - the system might be down or might just get lost on the way to the server. Thankfully, once you have signed up for insurance, you will get a telephone number where you can process your claims. Most companies only use the telephone to process claims, so you can put your mind at ease.

So I will be able to get signed up immediately?

Well, not really. It would depend on the company and type of insurance you are looking for. The Internet side of insurance is mainly used to save money on generating quotes and finding clients. This cost saving is then passed to you. However, some type types of insurance require certified documents before the rate can be assessed (such as certified medical documents for life insurance) and your quote will only then become a policy.

Factors that need to be ironed out, such whether you can use your doctor in a particular health insurance policy can also lead to a gap between your application and signing up. Auto insurance is the quickest of the three from quote generation to policy sign up. Remember, shopping for insurance online cuts the legwork you have to do to find a better service provider. It does not cut out what has to be done physically.

So how do I check if an online insurance company is legitimate?

Always, always check to see if they give their phone number and physical address. If they don't then go to someone else. It's that simple. Don't be fooled by companies that try to hide behind the internet - you will regret it later.

Also, if you find a company that offers discounted life insurance, go with the motto "things that look too good to be true - usually are". These are certainly scam sites, due to the fact that life insurance is heavily regulated and only the policy carrier sets rates. All in all, the Internet gives you the freedom of research - do your homework!

Super, I'm feeling a lot better about this now. Any other tips you could give me?

Of course, quite few actually.

Remember to always provide the exact same information for every carrier you are requesting a quote from. They all base their rates on the same criteria, so if you change your details, then you will get a lopsided view of the rate quotes.

If you know what is needed for typical insurance, make sure you have it handy when applying over the Internet. Sending you medical records the following day (even the same day) could save you a lot of time in getting signed up and avoiding any unforeseen circumstances.

Remember that online insurance does not work differently than offline insurance - except to give oyu a larger choice.

Also, always make sure that the insurance agent/website is registered in your state. This way you can avoid any future pitfalls that come from not doing due diligence when researching. All the information needed is on the ends of your fingertips.

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