Shopping for insurance online used to be a matter of comparing price to price. But these days there are independent insurance professionals who can help just as much as automated websites. The key difference between these two options isn’t price — it’s how your insurance fits your unique needs both now and in the future.
Let’s take a closer look at how independent insurance professionals and online providers work, their individual strengths and weaknesses, and which option might be best for your circumstances.
How Do Independent Insurance Professionals Work?
An independent insurance professional does not work for any one insurance company. Rather, they are licensed to write business with a wide variety of carriers. That allows them to compare pricing, coverage, and service across the marketplace and advise you on coverage options that fit your risks. They are not incentivized to push you toward one company over another.
Independence also allows agents to tailor limits, endorsements, and policy structure to how you live and work. This can be especially beneficial if you have multiple layers of protection to consider, like vehicles, homes, businesses, or liability exposures.
When you work with an independent agent you also have someone you can call for assistance. At Bowthorpe & Associates Insurance Producers our clients receive annual reviews, renewal support, and representation during claims instead of making these decisions by themselves.
Strengths of Independent Insurance
Personalization is a significant benefit of working with an independent insurance agent. Because agents sit down with you to discuss your coverage before writing your policy, gaps that automatic quoting systems might miss are often uncovered. Things like insufficient liability limits, missing endorsements, outdated values, and overlooked assets are all examples of where an agent can add value.
An independent agent also allows you to maintain continuity as pricing, underwriting requirements, and policy language changes over time. This can lead to more predictable pricing year over year because adjustments can be made proactively.
Finally, when you file a claim with insurance placed through an independent professional, you have someone who can help. Whether it’s interpreting policy language, following up with the carrier, or advocating on your behalf, that second opinion often leads to quicker resolutions.
What Do Online Insurance Providers Do?
Online insurance companies sell insurance just like any other insurance company. The difference is they cut down on overhead by allowing you to complete much of the shopping process on a website or mobile app.
Shopping online is typically quick because you are asked standardized underwriting questions. Premiums are often quoted using algorithms that factor in variables you provide. This can be very efficient for simple risks like single vehicles or basic rental insurance. Additionally, some online companies utilize telematics or usage based pricing which can reward safe drivers.
Another benefit of shopping online is instant transparency. You can typically adjust your limits and deductibles to see how your premium would change if you modified your protection.
Limitations of Online Providers
While online providers excel at offering quick quotes and automation, they’re not very personalized. Coverages might be standardized, endorsements may not be offered, and certain risks may not be identified during the quoting process.
Because online companies utilize technology to keep overhead low, claims support is often automated as well. For minor, straightforward claims this can be incredibly convenient. Larger losses or those that require interpretation of policy language may leave you waiting on call centers, chat bots, or escalation queues.
Online applications also rely on you to provide accurate information. Say what you mean, but don’t extrapolate. If a carrier misunderstands your situation based on your answers, you may not discover that until you file a claim and it’s denied.
Personalization vs Automation: Comparing Agents and Online Quotes
Independent agents take time to understand your situation so they can recommend coverage that fits your needs. This often means your policy is customised, but it can take longer to get the quotes you need.
Online providers use algorithms and automation to get you pricing quickly, but may not be able to offer advice. This can work well if your insurance needs are simple and you’re comfortable buying coverage without professional help.
Online Providers vs. Independent Agents: Which Is Best?
Neither online insurance nor independent agents are inherently better than the other. Your choice depends on whether you value having an expert to guide you through your insurance decisions or if you prefer to make those decisions on your own.
Cost and Quotes
It’s true that online companies often have lower overhead, which can lead to lower premiums. But independent agents may also know about discounts, bundling opportunities, or carriers that aren’t visible online.
Long Term Value
The long term value of your insurance isn’t just about how much you pay for coverage. How your insurance company handles claims is a huge part of your policies value. Oftentimes, spending a little more for a policy that behaves during a claim can provide you with more financial protection than letting premiums dictate your coverage decisions.
Which Should You Choose?
If you have simple insurance needs and price is your main motivator, purchasing insurance online might make sense. If you own multiple assets, have liability exposure, own a business, or want guidance year over year, working with an independent agent might be right for you.
In reality many consumers begin with online insurance because it’s convenient, then transition to working with an independent agent to verify their coverage is adequate.
Final Advice
Both independent insurance professionals and online companies have their place in today’s market. When deciding which route is best for you, weigh the benefits of having professional advice against getting coverage instantly. Consider how much time you want to spend understanding your risks and whether your insurance needs are complex.
Making sure you’re comfortable with your insurance coverage will help you sleep better at night no matter which option you choose.
Bowthorpe & Associates Insurance Producers understands that shopping for insurance can be daunting. That’s why we’re here to help with free reviews of your coverage. To learn more, contact us.
FREQUENTLY ASKED QUESTIONS
Q1: Do independent agents cost more than online providers?
A: Not necessarily. Agents have access to many different carriers and discounts.
Q2: Can I trust online providers to handle claims?
A: Simple claims should be handled quickly and easily. Larger or more complex claims might take longer to process.
Q3: Do independent agents have access to online pricing?
A: Absolutely. Most independent agents have access to the same online databases and can provide additional advice.
Q4: Should I work with an agent or buy insurance online for my business?
A: Agents are typically a better fit for complex or higher-risk scenarios.
Q5: Is it too late to switch from online insurance to an independent agent?
Not at all. You are not locked into keeping insurance with one company or another.