Chubb’s latest survey has found that more consumers have been shopping for homeowners insurance online the past few months. According to the study, entitled “Winning the New Client Journey,” more than half of respondents said that they shopped online for homeowners insurance in the past 12 months.
Is shopping online for Insurance smart?
“While the option to shop for homeowners insurance online can appear to be a time saver, there is a risk in using the same online shopping strategy for buying a pair of shoes to purchasing homeowners’ insurance,” commented Chubb personal risk services executive vice-president, Mary Parsons. “Insurance can be very complex, especially for those who have a number of valuable assets that are in need of customized strategies to ensure they are properly protected from a range of unanticipated, adverse events,” Parsons explained. “One size does not fit all and independent agents and brokers are uniquely positioned to help clients make sense of all of the information available so that they can choose the right coverage, with peace of mind.”
A quote that combines homeowners insurance, car insurance and umbrella insurance can be very tough to manage correctly without an agents help. As you accumulate assets, it is extremely important to make sure you work with an agent. Don’t have many assets? There are still reasons buying through an agent is smart. You probably are a little fuzzy on insurance terms, or maybe this is your first time buying insurance. With direct-to-consumer insurers, like Geico, you can buy the right coverage online, but the key is knowing how much you need…and that’s what an Agent can help with.
The Dangers of Shopping for Insurance Online
If you know EXACTLY what kind of coverage you need, shopping for insurance online might not too bad. However, you must make sure you are comparing policies in every way, which isn’t always easy…especially online. Most online quoting systems default to the lowest coverage amounts. If you don’t pay attention, you will probably be left with inadequate coverage or less coverage than you had previously. Beware of websites promoting “name your own price” tools. You can name your own price, but 99% of the time to get it you’ll end up with a bare-bones policy. Once you have assets, an accident can wipe it all out if you aren’t adequately covered.
Why an Agency vs. Direct-to-Consumer?
We represent you. Insurance companies will raise and lower rates like the tide in the sea. If your current policy is caught in a high tide and you are with a company such as Allstate, Farmers, State Farm, etc., you will be stuck with that company. Insurance brokers, like Gunn-Mowery, have agreements with multiple insurance carriers and 90% of the time, we can find you the same coverage with an A-rated carrier for a lower premium.
We have access to over 20 companies. If you go to Geico, you will only get Geico coverages. Who wants only one choice? This is America, you deserve the freedom of choice.
We have dedicated claims advocacy experts. If you get in an accident and have issues with your claim, you call us at Gunn-Mowery. You don’t need to call a 1-800 number and sit on hold forever. We will take care of your claim issues and see them through to resolution.
According to the Chubb Survey, respondents believe:
- 67% of respondents said that main advantage of working with agents and brokers as part of the shopping process is that the professionals give advice on how to protect one’s home
- 64% acknowledged the benefits of being able to talk to a real person in the event of a claim
- 54% look at agents and broker’s as more credible when they don’t lead with the lowest cost option first
Buy the wrong sized shoes online, send them back. Buy the wrong policy online? No refunds given and you may suffer consequences for a long time.