http://www.insurancenetworking.com/protected/article.cfm?articleId=3685
http://www.globalchange.com/insurance.htm
Between the two articles that I read, I found that online insurance is not the best idea. The global change article points out the multitude of problems that come along with having online insurance: from not actually having a binding contract to no firm price. The article went into how online insurance could work for people in certain countries, but not other countries. Meaning, if you are an American citizen and you drive into Canada or Mexico and get into an accident, the insurance will not cover you because you are no longer in the United States and the insurance is not valid in any other country.
Even aggregators of insurance companies are not necessarily fair to individual customers. They give the price of only certain insurance companies: those who are willing to give them a commission to advertise their company online.
Another problem with online insurance companies is that they do not necessarily care who you are or if the information that you gave is accurate. They do not have people that could come and check up on you. They do not know if the address or phone number that you gave is necessarily correct unless they check up on you and many online companies think that if the credit card information you gave is correct (meaning that the payment went through), the other information is correct. This can be a big problem when it comes to getting a claim check. If you accidentally switched two numbers in your zip code or something similar, then you may never get the check.
The second article goes into customer satisfaction of online transactions. 49% of customers surveyed had problems with online insurance. Almost half of the people were not happy with their online insurance. While that means that half is happy, there is a very large chance that you will not be happy either.
With all this information, you would think that I have a very pessimistic view of online insurance. I do to an extent. I think that all online companies are risky and probably a bad idea. There is no reassurance that they will be here tomorrow. However, without the costs of a physical location, they most likely have lower rates than traditional insurance companies. Traditional insurance companies who have gone online to streamline their service are a very good thing. There is reassurance that they will be there tomorrow because they have the physical locations. It is also nice to be able to walk into their offices or call the office and speak to a human.
3 comments:
This is very interesting since companies like GEICO or NYC Auto will take a call over the phone to collect the same information from you as would be collected online. I wonder if part of its short-coming is due to the long contract and the general difficulty of comparing insurance products by consumers.
Exactly! Is the insurance process simply to difficult for the average person to understand? does it work for say, auto, but more difficult for homeowners? Just think about how baffled victims of Katrina felt when then did not even really understand what was covered.
GREAT TESTIMONY HOW I GOT MY LOAN I have a very important message to share with everyone that is in need of a loan from a genuine lender. I'm happy to share this note with everyone after what myself and my wife went through in the hands of some pathetic hoodlums claiming to offer some sort of loans. It's very difficult to get a genuine lender and thanks to Best Loan lender who helped me with the loan, Contact them if you are in need of a loan and come back to thank me later. I promise you they will not disappoint you. contact Email:- (pedroloanss@gmail.com Whatsapp +18632310632) Thanks.
Nazgul William.....
Post a Comment