Just as one might use a CPA to prepare their income taxes or an attorney to help with estate planning, many choose to use an insurance agency to write their insurance policies. This choice is mainly made because a person feels they need professional advice during the process. Everyone will have different needs and circumstances surrounding their purchase, and an insurance professional’s advice can be an invaluable asset.
Questions to consider before buying online
- Do I know for certain what specific coverage(s) I need?
- Do I know all the questions I should be asking before making an insurance purchase?
- Will the online purchase truly result in both time and money savings?
- Can I obtain all my insurance policies through a single online insurance provider?
- Can I call the online insurance provider and receive insurance advice when needed?
- Is the personal information I’ll be providing kept secure?
You want to know exactly what coverage you need and that the insurance you’re purchasing meets those needs adequately. Insurance can vary greatly from state to state, meaning it’s equally important for your insurance source to be knowledgeable. You certainly don’t want to purchase a policy and discover down the road that it doesn’t protect you during a claim. Making a purchase with an online company that fails to connect professional advice to your personal needs can leave you at risk of being without the coverage you need. You shouldn’t be the only one taking time to ask questions; the online company must ask you questions to ensure they’re recommending the appropriate coverage(s).
One of the best ways to determine if you’re really saving money by purchasing online is to get a quote for your policy online. Do keep in mind that most online companies don’t offer multi-policy discounts, such as for home and auto, because many offer homeowner’s insurance through a different company, if at all. On the other hand, an insurance agency typically allows you to select coverage from several different insurance companies and can help determine which company will offer the most favorable rates for your particular risk type. For guidance on selecting an agent, consider reviewing Choosing the Right Insurance Agency.
Another consideration is that insurance agencies typically have a much more stringent screening process in relation to carrier options. Unlike many online companies, agencies will often have the services you need readily available and can assist without requiring you to learn a new portal or system. For example, obtaining insurance documents such as a certificate of insurance is usually quick through an agent.
Imagine you’re using your vehicle to take your child and some classmates on a field trip and learn the day of the trip that you must have evidence of insurance. If you use an insurance agency, the documentation can be faxed or emailed to the school or to your smartphone with a quick call. An agency can also help meet challenging needs associated with hard-to-place policies. Despite the trend for online shopping, insurance agencies continue to thrive because of the solid reputations they build from customer satisfaction.
Insurance is often required — auto insurance by your employer, homeowner’s insurance by your mortgage lender, or specific coverages required by the owner of a rented space for an event. Such requirements can be complex. If you use an insurance agency, you can email or fax any insurance requirements to your agent for quick and efficient resolution. For help understanding different coverages and inspections, see Understanding Insurance Choices and Inspections.
Carefully consider how you purchase your insurance. Surprises are the last things you want when it comes to vital protection. If you have any uncertainty about what you’re getting with online insurance, you might want to rethink the decision. If you’d like to avoid the one-size-fits-all approach of online insurance and receive the knowledge and expertise of an agent, consider opting for a professional, independent agent to prepare your policy.
Frequently Asked Questions
Is buying insurance online always cheaper?
Not always — online quotes can be lower for simple risks, but agencies may find better multi-policy discounts or more appropriate carriers for complex situations.
Can an online insurer provide proof of insurance quickly?
Some can, but agents typically provide certificates and other documents faster and can troubleshoot delivery issues directly.
How do I know which coverages I actually need?
An agent can review your situation and recommend coverages; if you’re uncertain, seeking professional advice helps avoid coverage gaps.
Will an agent help if I have a hard-to-place risk?
Yes — agents often have access to multiple carriers and specialized markets for higher-risk or unusual coverages.