Hearken back to the days when “technology” was having an erasable ribbon on a typewriter. Care to go back? Unless you are a nostalgia buff, probably not so much. Now it’s just a “delete” key. In the same way the days of filling out endless forms, driving from company to company, then to the DMV, and playing phone tag with a number agents trying to get the best quote for auto insurance, is a thing of the past.
With the Internet has come incredible ease and efficiency for the auto insurance consumers, agents, and brokers. In today’s world, those forms are now electronic PDF’s and can be sent back and forth over email. Insurance companies can get vehicle information at the entry of a VIN number and the click of a mouse to see if a car really DID belong to a little old lady from Pasadena. Driver’s no longer have to battle the week-long lines at the DMV as in Washington State now, their driving records are made available to insurance companies over the Internet. In addition, given the availability of car photos and information on line, rarely does one have to drive for a visual inspection of the vehicle. All of these things favor the consumer. Why?
Competition.
In addition to the many positive changes listed above, car insurance purchasers can now get multiple quotes at a side by side glance simultaneously. This requires that insurance companies put their best foot forward when it comes to premiums. If they do not compete with others on the list, or refuse to enter the technology world, they will be gathering dust in the closet with the IBM Selectric typewriter. In addition, this competition is no longer just between the two insurance companies on the corner of Anytown, USA. Now customers from Winthrop to Walla Walla, WA can shop for insurance anywhere in the country without ever getting out of their slippers or easy chair. This further forces insurance companies to be accessible on line and stay competitive.
In case you had a slight twinge of sympathy for the insurance company, they do win as well. By being an on line presence, they can recruit policyholders from all locations, which increases their pool of purchasers and lowers rates. We all WIN!
Given the alternatives, it seems clear that unless you drive a Model T Ford, milk cows for your morning cereal, and spin wool into yarn for your clothing, on line car insurance is probably the best option for all, and is here to stay.