Buying Auto Insurance – Direct vs Brokers

Auto insurance is one of the best selling products and there were many advertisements encouraging people to buy one. Consumers often have doubts in identifying a company whether it is a brokerage or a direct carrier and also in realizing the pros and cons of buying direct versus through a broker.

To avoid such doubts, many states require the companies that sell auto insurance to be properly defined as either a direct carrier or a broker. A good example can be seen in California where the brokers are limited to using the words “insurance company” in their title so that the consumers are not misled. Brokers may suffice with “insurance agency” or “insurance services” or “insurance brokerage”.

To choose the better of the two options, you need to consider many factors. The direct carrier offers the following benefits.

  • Direct claim support from the carrier
  • Instant customer service along with instant changes when needed
  • No setup or approval or renewal fees
  • No chance of the company going bankrupt
  • No intermediaries
  • A brokerage offers the following benefits:
  • Wider variety of carriers – Likely for lower rates
  • More personalized services offered to customers to decide according to customer requirements
  • The ability to switch carriers in the same brokerage if the current carrier is not satisfied
  • Lower waiting times during a call
  • Skilled enough to pay at the office
  • Receive documents instantly with no fax or email requirements
  • May be open on weekends
  • Certain companies can only be accessed through brokers

The truth is that both options have their own pros and cons. So there is no better way out and depends mainly on your wishes and the current situation. Suppose you have already come up with a certain brand and are only willing to pay a higher premium for the brand of your choice, then it is indeed a good idea to go to a direct carrier rather than a middleman. While there are several insurance rates compared, you may even be surprised to know that the company that offers the lowest rates may be one of the recognizable brands.

Another way to get car insurance is through the internet. Online car insurance sites offer their products more easily and quickly. Therefore, this is a good option to buy the policy. In addition, you have full control and access to the policy from your home. Some of the online providers offer 24×7 services that help to file claims at any time and any day.

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The online providers only need you to fill out a simple application on their website. They also provide services like comparing rates from different companies like AIG, Infinity, Progressive, GMAC and many more. In addition, some states offer rate comparison services from companies such as SafeCo, Mutual, Esurance, Liberty, MetLife Auto, The Hartford, and many more. Besides, the purchase of car insurance online has been facilitated by some states.