Buying Insurance Online is Difficult

Recently an article was published in the San Francisco Business Times (October 2008) eporting that Esurance has purchased an insurance brokerage. This is a tremendous departure from their high tech online insurance business model. It sounds as if they are attempting to accomplish what local agents do everyday; help the insurance buying public make good, important buying decisions about their individual protection.

Here are some of the key points that caught my attention;
- Esurance has spent roughly 10% of their revenue in advertising, or $125 million.
- Only 10% of the people that shop their rates become customers.
- The article goes on to highlight significant financial losses and under performance.

Buying insurance over the Internet is tricky and frustrating. We have found that when individuals purchase insurance online, they tend to tweak the various rating factors (coverage, mileage, usage, etc.) to get the lowest rates available. Only later to learn that they don't have the coverage suitable for their financial protection. Or perhaps they unknowingly misrepresented the application leading to potential claims investigation. What ever the scenario is, one thing is for sure, talking with trained licensed agent that can shop multiple companies will out perform internet insurance company many times over.

Purchasing insurance from your local independent insurance agent, you can expect;
-To get great service from a friendly professional.
-Keep more of your premium dollar in the community and off the TV.
-Trust in a professional to navigate the complicated insurance marketplace, finding you the best rates, and coverages for you and your family.

So next time you see commercial promoting insurance online, remember you have local community members ready, willing, and much more capable to assist you in your insurance buying decision.