The Internet has changed the auto insurance business so extensively that it no longer resembles what it was prior to the creation of the World Wide Web in 1992. Back then, when car insurance renewal time came around, an estimated sixty-three per cent of car owners ended up remaining with their insurer, according to the Insurance Institute of America. Today that figure is down to less than twenty-three per cent due to the abilitiy to obtain auto insurance quotes online.
Many accuse the insurance industry with a litany of failures in responding to customer needs. Loyalty bonuses, common in many businesses, simply are not out there in the car and home insurance field, and they should be. The problem of insurance skimmers, that is, companies that specialize in low rates for older drivers, continues to give actuarial statisticians fits. Given this failing, many insurance companies find themselves needing to adjust to the new mode of delivering auto insurance quotes online.
A consequence of this, however, is that it has meant that certain insurers are skimming off low-risk drivers, leaving those willing to insure the typical new driver, male, with significantly lower ability to allocate risk. This is why insurance rates for new drivers have increased so dramatically that it has increased the number of males under 25 driving illegally, with no insurance at all. There are on-going debates in actuarial theory about the problem.
But higher rates for young drivers aside, shopping for car insurance online is an eye-opening experience. Before the internet, consumers had to spend hours going through the phone book, punching their way through a voice menu only to wind up most times leaving their name and number on some agent or broker's answering machine. And of course there was the time spent handling the call backs, keeping track of the quotes, doing call backs, and on and on and on.
A recent survey by a well known business school asked 400 online insurance shoppers why they chose to look for car insurance online. The number one response was that they wanted a quote and that was it. Car insurance websites know this and make it as fast and easy to use as possible.
An unintended consequence of the ease in obtaining online quotes for car insurance is the transparency of the risk profiling process. When shoppers answer the questions, they see what factor the make of their car plays, or where they live. They understand the financial implications of getting liability only, rather than full coverage.
Perhaps one of the most attractive and informative features of otaining an auto insurance quote online besides shopping for car insurance is when you decide to shop for a new car. Many sites that offer online auto insurance quotes have a feature where people can find out the different rates per vehicle. When evaluating comparable models that vary greatly in dealer invoice prices, the car insurance cost can be a deal breaker or maker.
Many accuse the insurance industry with a litany of failures in responding to customer needs. Loyalty bonuses, common in many businesses, simply are not out there in the car and home insurance field, and they should be. The problem of insurance skimmers, that is, companies that specialize in low rates for older drivers, continues to give actuarial statisticians fits. Given this failing, many insurance companies find themselves needing to adjust to the new mode of delivering auto insurance quotes online.
A consequence of this, however, is that it has meant that certain insurers are skimming off low-risk drivers, leaving those willing to insure the typical new driver, male, with significantly lower ability to allocate risk. This is why insurance rates for new drivers have increased so dramatically that it has increased the number of males under 25 driving illegally, with no insurance at all. There are on-going debates in actuarial theory about the problem.
But higher rates for young drivers aside, shopping for car insurance online is an eye-opening experience. Before the internet, consumers had to spend hours going through the phone book, punching their way through a voice menu only to wind up most times leaving their name and number on some agent or broker's answering machine. And of course there was the time spent handling the call backs, keeping track of the quotes, doing call backs, and on and on and on.
A recent survey by a well known business school asked 400 online insurance shoppers why they chose to look for car insurance online. The number one response was that they wanted a quote and that was it. Car insurance websites know this and make it as fast and easy to use as possible.
An unintended consequence of the ease in obtaining online quotes for car insurance is the transparency of the risk profiling process. When shoppers answer the questions, they see what factor the make of their car plays, or where they live. They understand the financial implications of getting liability only, rather than full coverage.
Perhaps one of the most attractive and informative features of otaining an auto insurance quote online besides shopping for car insurance is when you decide to shop for a new car. Many sites that offer online auto insurance quotes have a feature where people can find out the different rates per vehicle. When evaluating comparable models that vary greatly in dealer invoice prices, the car insurance cost can be a deal breaker or maker.
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