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Is buying cheap auto insurance online wise?

Traditionally, those looking for insurance either went directly to the local office of an insurer or the family had established a relationship with an agent who handled all insurance issues. It's only since the arrival of the internet that this business model has been broken. Now all the leading insurers have their own websites and there are large numbers of search sites like this. Why should you seriously consider buying your auto insurance online?

The old argument was that there was a good relationship with a human being and, if something was unclear or there was a need to make a claim, you could rely on the "friend" of the family to answer all questions and see you right. The only problem with this business model is that it employs a vast number of people to befriend the country. Sadly, all these people had to be paid and so a large part of the premium rate was paid to your friendly agent. This gave your agent a direct financial incentive to sell you as much insurance as possible. Now insurers have switched to large office complexes in the major cities, most communication is through call centers which can be anywhere. The idea you will have a personal relationship with your insurer is dead. You will never get the same person twice running at a call center. This would all be a bad thing except, with the reduction in employment has come a big saving in labor costs. That's why the auto insurance quotes you receive online are usually cheaper. The online systems are automated. The insurers are not paying people to deal with you. If you do go talk with an agent, your costs immediately rise because you are now paying that agent's commission.

So this comes to a simple decision on your part. All the basics of getting the auto insurance quotes and dealing with the routine issues can all be dealt with online. All the better sites have good quality explanations of the terms and conditions on offer. You don't need to talk to a human being unless you need more detailed explanations or you think you are entitled to more discounts than have been offered. Now it's worth sitting down with a drink and waiting for a call center person to become free. Until then, buy online and save money.