Are you looking for Auto Insurance? Many consumers think going direct online to an insurance company is going to save money and streamline the process. This could not be further from the truth, costs, customer service and overall experience is compromised when dealing directly with the insurance company.
Studies done by Risk heads states that many of the consumers that went direct to search for a policy online found that going to a broker to get a policy was much easier. What is interesting almost everyone thought direct was the best bet!
Studies show that consumers were really frustrated with direct online quotes. The insurance companies they were submitting their online quotes to were not as responsive and were very difficult to deal with when changes needed to be made. Brokers were far more responsive, pro active and eager to answer questions via personal email or a phone call. Problem solving via brokers was quicker and proficient while direct online quotes from large carriers were slower and less effective. Not to mention many of the prices received by direct online quotes were not accurate. When drivers received their first bill there was a price discrepancy. Especially, when the driver needed and SR-22 filing or had tickets on their record. Brokers were far more careful to get the correct information in order to give an accurate quote.
The consumer study also found that Broker’s pricing were around 10% lower than direct insurance pricing. This fact is quit contrary to popular belief. The inception of the study found that most consumers thought that going direct would save them money, after speaking with a broker or going to a broker website to complete a form on line they were quit shocked to see the insurance savings.
Many of the consumers were confused why it would be cheaper via a brokerage. “They are a middle man,” many of them thought. However, most brokers have relationships and contracts with insurance a carrier that allows them to charge lower premiums on policies. Why would a large insurance carrier give a broker the ability to charge more competitive prices? The answer is simple-when a broker signs up a client through a particular carrier that broker assumes all the 1risk. Plus, brokers are trained and typically do not under insure a client which will not allow a large loss ratio. The middle man, which is the broker, seems to be the best beat when it comes to cost!
The aspect of speed studies found that both brokers and direct online large carriers were very close in how fast the processed the initial quote. There were some differences though. Brokers seemed to follow up with a personal phone call to be more exact on the quote. Direct insurance companies typically followed up via email.
What really separated the two was during mid-term policy changes and renewals. Many or the large insurance companies have inexperienced call centers handle most of the mid policy changes. This bogged the process down. While brokers handle the policy from the start to the finish, they were available to answer questions and give suggestions on a daily basis.
In essence customer satisfaction seemed to be far greater when a broker was involved; it seemed to streamline the process when the client was already on the books.
Remember a broker respects and values your business. A large insurance carrier sees you as another number after you are already on the books.
You know you are covered and data is safe
A broker’s job is to educate the customer, they are not just trying to sell you a policy and move to the next paying customer. Brokers seem to educate and were explaining what the customer was buying and why they needed to buy it to cover their assets.
Large direct insurance carriers leave most of the work to the consumer; they expect you to do the foot work regarding your policy. The really high end direct companies only deal with low risk standard policies. A broker has more experience dealing with diverse policies. Such as multiple filing policies, DUI insurance programs, SR-22 filings and unique vehicle filings.