The Internet and It’s Impact on Car Insurance
Car insurance is now compulsory by law and obviously a good idea if you want to protect yourself in case of an accident. Car insurance amazingly dates back all the way to’95, where the first insurance policy was drafted in the United Kingdom.
The car insurance industry has really expanded since the first policy was drafted. Car insurance has slowly joined other forms of insurance, including property, medical, and life insurance. Today, people are often overwhelmed with all the insurance premiums.
Finding the right car insurance company is a complicated manner. It involves several phone calls and/or visits to the main office. This was especially difficult for rural residents in the old days. It’s obviously easier today, but many people still view the process as a hassle.
In the past, insurance companies answered the growing demand for car insurance by hiring brokers. These people were licensed and rich in knowledge of car insurance. They were also very friendly and open to meet with potential clients to discuss different policies.
Insurance brokers are business people who earn their profits by commissions from the insurance companies whom they represent. Most brokers are professional trained and extremely well versed in the polices currently available.
Save yourself the hassle by lending your vehicle to just anyone. Only hand over your keys to people you really trust and are close friends or family. Accidents take place everyday, so do you want to run the risk of covering somebody else’s mistake?
Usually they do, and consequently the policy holder forms a close bond with the broker. They continue to do business for the rest of their lives. The policy holder usually passes down the broker to his children and recommends the broker to others.
As I mentioned earlier, brokers are slowly losing their jobs to the digital age or are transferring to doing business online. More people are finding online insurance easier to get and compare. The polices are also usually cheaper, because consumers avoid paying broker fees. Statistics show that people save between ten to fifteen percent of their annual insurance premium by doing business online.
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal