September 2, 2010

How Insurance Agents Advertise Services Through Auto Insurance Quotes

In order to find a good auto insurance policy, many drivers decide to use the wealth of resources on the Internet to drive down policy prices and increase coverage limits. There are hundreds of specialized websites set up to offer free auto insurance quotes from multiple insurance providers while requiring very minimal information from drivers. This can make it easy to quickly compare the advantages and disadvantages of different insurance policies, providers and coverage levels. However, drivers aren’t the only ones profiting from the explosion in online car insurance aggregate websites. Insurance agents use Internet quote websites to their advantage, and often treat these websites as an opportunity to promote their services.

In order to promote their services to drivers, insurance agents allow aggregate websites a direct line to their quote generation tools and algorithms, sometimes offering a special quote generation tool or web page designed specifically for each aggregate website that requests help. In other words, insurance providers make it very easy for an aggregate website to find out exactly what a driver will need to pay for a certain auto insurance policy and offer streamlined access to other information about each policy (coverage limits, etc). Most auto insurance companies even provide a commission for every new application that is received through the aggregate website. For insurance providers, this can be an obvious step, as it gives the insurance aggregates an incentive to find new business and new auto insurance policy holders.

For drivers, the special relationship between auto insurance companies and insurance quote websites is very beneficial and improves competition. Insurance providers want to get new drivers, so they’ll often offer special discounts and preferential rates to shoppers who use aggregate websites. This can help push down the cost of auto insurance. However, it’s still important to read every quote carefully and learn to recognize the differences between a good car insurance policy and a bad one. It’s also important to realize that some aggregate websites are set up as scams and always list certain insurance companies as the best possible options for a driver—even when another insurer would be a far better choice. Drivers can avoid these pitfalls by reading policies carefully and making smart decisions about coverage limits and other aspects of a car insurance policy.

Insurance agents promote their services through online auto insurance quotes, and for drivers, this is mainly a good thing. Aggregate websites make the auto insurance buying process much easier. However, there’s still no substitute for knowledge, and learning about your auto insurance policy is the best way to find solid coverage and affordable premiums.