Insurance

Insurance Broker vs. Buying a Policy Online: Which option is best?

Are you in need of a new insurance policy? No matter if you are buying for the first time or simply making a change, you need to consider your options. Most importantly, you cannot afford to overlook the way you are going to buy coverage.

Two of your best options include: buying through a broker and buying online without any outside help. The question is: which one of these is best for you?

Benefits of a Broker

The main benefit of buying insurance through a broker is that they will do most of the work for you. You tell your broker what you want, and from there they will go out and find it. Does it get any easier than that? While you have to do a little bit of work, for the most part you will be sitting back and letting the broker take charge.

Another benefit is that most insurance brokers are well connected. This means that they may be able to find you a provider and/or policy that you would never locate on your own. Simply put, an insurance broker brings a lot of industry expertise to the table.

Downsides of a Broker

The main issue with hiring an insurance broker is that they get paid when you buy a policy. For this reason, you may run into a situation in which you are being pressured to make a decision. It is important to choose a broker that is willing to help you get the best deal – even if it means they are going to earn less money.

Also, some brokers do not have as many connections as others. With this in mind, you could miss out on a great policy if you don’t have the right broker on your side. Be very selective.

Benefits of Buying Online

Above all else, when you buy online you are the person calling all the shots. Rather than speaking with a broker or agent, the entire process is yours to complete from start to finish. While this may sound like a lot of work, there are many service based websites that can help you along the way. You can opt to work directly with insurance providers by visiting sites such as: StateFarm.com, Geico.com, and Esurance among others. That being said, if you don’t know which company you want to buy from you can use a third party site that can provide you with multiple quotes. To get started, check out InsuranceQuotes.com, AutoInsuranceLocations.com, 2insure4less.com, and InsureMe.com.

Downsides of Buying Online

Are you the type of person who needs help making big decisions? If so, you may not want to buy your policy entirely online. When you decide to shop via the internet, you are in charge of every last detail. While beneficial to some, this is scary to others. There is nothing wrong with wanting to work directly with a broker or agent. It is a matter of preference.

Tip: just because you start out shopping online does not mean that you have to finish in the same place. For instance, you can receive several quotes online from different providers and then contact an agent direct for more information.

What do you think? The next time you are in the market for insurance you will have to consider if buying online or through a broker makes the most sense.

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