Let’s face it. Times are tough for many people out there. I am beginning to see more people shopping their insurance to save money. With the ease of the Internet many are going online.

There are three basic sources to shop online for car or home insurance. You can go directly to an insurance carrier website, to an online comparison site, or an agency website. Here are a few tips to help protect you in your quest.

Insurance Carrier Websites

When you go to an insurance carrier website you’ll get quotes directly from that carrier. The rates they offer are usually accurate when you completely fill out all the information they need. However, because you’re not dealing with an agent you have no recourse when you buy the wrong coverage. You’re taking full responsibility as the “insurance professional” when you do this. If the term “bodily injury liability limits” scares you, I wouldn’t recommend this method.

Also, you have to be careful what you actually buy. I visited one carrier’s site and clicked the ‘choose lowest price’ quoting option for their car insurance. It gave the state minimum liability limits and eliminated basic coverage options most people currently carry or want to have (glass, towing and rental car coverage). While it potentially saved money in the short term, there would have been more to pay in the event of a claim.

These aren’t bad places to shop around and compare. You can get fast accurate quotes without an obnoxious insurance salesperson. Just make sure you know what you’re doing if you decide to hit the “buy now” button.

Online Comparison Websites

These sites are often a little misleading. They often have the logos of the major insurance companies streaming by or flashing on their pages and give you the impression they represent these companies. Or, when you land on their homepage it might read, “Compare quotes from top rated insurance companies.” These sites generally do not represent any insurance company. What they do is sell your information to 5 or 7 different insurance agents to quote your insurance.

This is a quick way to have 5 or 7 agents shopping for you. However, there are two concerns I have about these sites. You don’t control who is receiving your private information and you will be pestered by 5 to 7 insurance agents desperate to sell you insurance.

After you give these sites your personal information you have no control where it is being sold. One site’s privacy policy reads, “…your information is used to match you with an average of three to four qualified, licensed agents who can best serve your insurance needs.” How do they match the agent to your needs? Do they verify the agent is actually a licensed insurance agent? As someone who has used this company I can tell you the company’s only qualification is the person’s ability to pay them per lead received; the company did not verify I was an actual licensed insurance agent.

After you hit “submit” on their site you give permission to be contacted by the agents. So, now you will begin to receive phone calls and emails from 5 to 7 insurance agents. The information gathered on these sites is never enough to get an accurate quote. Having spent money for your information, these agents are desperate to close the sale. I’ve heard complaints from some buyers about agents calling relentlessly for weeks to try and sell the policy. So, if you’re shopping online to save time, be aware you may spend a lot of time fielding or avoiding phone calls and emails.

If you’re serious about switching, this could be a viable option for you. In reality, the chances are small your information will end up in the wrong hands. But the chances are small you’ll get into a car accident too, right?

Insurance Agent Websites

There are various types of agency websites out there. Some may give you a quote instantly (accuracy varies with the amount of info you submit and the online rater they use). Others will send the information to the agency to rate and return to you. One isn’t better than the other.

You will have more control this way than you will with an online comparison site, because you pick the agent you will work with, you pick who you give your information to, and you pick the carriers you want to work with. You also have to decide if you want to work with an independent broker (someone that represents many insurance companies) or a captive agent (agents that only work with one company). I would also recommend reading their privacy policy to make sure they don’t sell or use your information in ways you don’t want.

The downside here is more work on your end in picking a qualified agent. You could easily Google “Gilbert AZ Car Insurance” and find local agencies, but it’s still up to you to weed through the results and find one that makes you feel comfortable.

What Appeals To You Now?

If you’re going to shop online, I hope this will help you in your quest. There’s obviously a lot more to any policy than just the bottom line. While most people call and say they want an “apples to apples” comparison, but in reality such a comparison is almost impossible because each policy’s language is different and contains its own “bells and whistles”.

So, no matter what you do, take your time when you shop around. And, realize, the true cost of insurance is the actual premium you pay PLUS the amount you have to pay for all claims that aren’t covered.

If you have any questions or concerns and would like a competitive quote on your insurance policies, don’t hesitate to contact me direct at 480.699.7222