Homeowners Insurance Customers Moving Online

Posted December 16th, 2009
by HomeownersInsurance.org Staff (no comments)

OnlineShoppingWhen you think about buying insurance online, you probably think about the Geico Gekko, or you might think about the bubbly Progressive cashier. These companies focus on auto insurance, and they tout the online aspect of their product offerings. More and more, people are turning to the Internet for their auto insurance.

Now, the same phenomenon is catching up with homeowners. An increasing number of customers are turning to the Internet to find their homeowners insurance. It is estimated that around 30 percent or more of new customers find their homeowners insurance provider through the web.

This is a major change. Insurance companies have long relied on their agents to sell their policies. The agents are usually neighborhood agents, local people who have their friends and neighbors as clients. Many companies still have policies that prefer customers work directly with a local agent, and may only provide an agent search on their website rather than a full discussion of their policies and premiums.

Homeowners insurance companies who want to keep up with the market, however, need to adjust their strategy. They need to do with homeowners insurance what Allstate has done with car insurance. In all of 2008, Allstate brought in about half a billion dollars of premiums through its web site and its toll free phone lines, bypassing local agents altogether. Add to that the fact that a significant portion of their clients who wind up working through an agent are referred via the web site, and you can see the effectiveness of this trend.

If you’re interested in buying your homeowners insurance online, there are some specific steps you should take:

  • First, identify some possible providers. Take a look at consumer review websites, and see how satisified current customers are with their policies and with the customer service they received.
  • Next, you need to get quotes. Many companies will provide you with quotes directly from their website. In some other cases, they may refer you to a local agent.
  • You’ll need to answer questions about the property, including things like how many rooms are in the home, how it’s constructed, how old it is and what kinds of safety features you might have in the home.
  • Now, you’ll be able to evaluate the quotes. Make sure you’re comparing like coverage when you look at multiple companies so that you know you’re really dealing with similar products.
Categories: Online Quotes

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