Shopping for insurance online? Here’s what you need to know.
If one thing about dealing with the Covid-19 pandemic has shown, it’s that people will quickly gravitate to online shopping when it makes sense to do so. But is insurance necessarily the kind of product you want to buy online?
A recent article in Canadian Underwriter article suggests while there has been growth in online insurance purchases, there are pros and cons to consider before committing to that approach.
Lots of people shop online but tend to be most comfortable doing so with brands and products they are familiar with. While most are familiar with the general concept of “insurance”, the specifics of different policies, especially for younger, first-time insurance buyers, might prove too complex for the online approach. First-time insurance buyers especially may not have the experience or familiarity to make sure they are getting adequate protection for their needs.
The professional advice provided by the brokers at DPM Insurance Group can be an important step to complement the online research process and ensure your needs are being met. According the article “Insurance is intangible and contractual. Penalty-free refunds are usually unavailable and most markets practice short-rating, front-loading policy fees into cancellations.”
Writer Lisa Smith went on to explain that insurance is often complex and customized to consumer’s needs, and insurers use different strategies to protect customers from diverse events. Average consumers do not fully understand their risks, assets, liabilities and ability to self-insure.
The Brokers at DPM Insurance Group are trained to work with you to understand your coverage needs and explain the implications of different policy limits, exclusions and available.
“Brokers liaise between insurance carriers and clients, properly assessing the client’s risk tolerance and helping select the best options,” the author explained.” Consumers looking to save on premiums, may not understand the impact of options on their financial security during a loss. Digital options often don’t replace the value of broker support.”
That’s not to say there aren’t benefits to the online experience. DPM Insurance Group offers online quotes through our website, which can be a good place to start. “According to Smith’s article, 61% of boomers, 58% of millennials and 54% of Gen X participants make insurance purchasing decisions using online research regardless of the final purchase method (online, call center or broker).
“Online packages are effective when client needs are easily identifiable. Consider professional errors and omissions or pet insurance,” Smith points out. “The online questions become: Can we identify and match consumer needs and product options? Can we instill confidence in online consumers that their financial future is secure with their selections? How do we ensure clients get the right policies if they buy online?”