by Mona Rigdon

Created on: June 02, 2009

Although those seeking car insurance can find hundreds of articles proclaiming the advantages of online car insurance, there are also disadvantages that should be weighed when making the decision. At first glance, it seems like online car insurance will save drivers pocketfuls of money, but in the long run, unexpected coverage gaps, lost time, unreliable service and payouts, and many other unknowns can end up costing a driver more than they would save over traditionally purchased insurance.

Online Insurance Purchasing May Result in Costly Policy Gaps, Exclusions

Although it is nice to look at the screenshot showing three price comparisons, what those price comparisons don't necessarily inform you of is the difference in policy coverages. Even though these websites claim the comparisons are for "comparable policies", they aren't necessarily identical policies. Even small differences in coverages and deductibles can be costly for drivers. Further, many websites don't offer a full policy for review before purchase, only a policy summary. Exclusions and exceptions are unknown until after the policy has been purchased, possibly even after an accident when it is too late.

Online Insurance Purchasing Offers Less Efficient Customer Service

Although there is usually a twenty-four hour customer service phone number, it is often frustrating to navigate the automated systems and eventually get to a human that can answer questions. In comparison, having a live, local agent allows questions to be answered quickly and effectively, and agents can assist with comparing different policies and discovering gaps in coverage that might affect you later. Filing a claim with a local agent can be more reassuring - and speedy.

Online Insurance Purchasing Offers Less Choice

Online car insurance has become a common offering of many larger insurance companies, but there are still a good many reliable and well-known companies that do not offer an online option. As such, comparisons may not be comprehensive, savings may not be accurate, and drivers may end up paying more for insurance with an online company than with a company that does not offer online quotes.

Online Insurance Companies May Not be Reputable

Many people assume that because an insurance company is online, that they are reputable. Truth be told, the reliability of these companies is not guaranteed simply because they are online and advertise sometimes unenforceable guarantees. Claims may be unfairly denied, underpaid, or companies may simply fold and disappear overnight, leaving drivers minus coverage AND premiums.

The decision to purchase online is entirely personal. Whether a driver chooses to purchase insurance online or through a live and personal agent, it is important to consider all the disadvantages and advantages of both methods of purchase before making that decision. The right insurance policy can save a family thousands of dollars (and tears), but the wrong policy can cost that much and more.

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