Shopping for insurance online can often be a dangerous and misleading venture if you aren’t careful and you aren’t aware of potential pitfalls.
While the internet has improved human nature as well as business functioning globally, numerous industries have also mad the shift to digital operations. The insurance sector has kept up with technological advances and has made the insurance-buying process much more convenient.
When searching for insurance, buyers need to beware of the good and the bad that comes with online insurance.
Various online insurance companies have also emerged in recent years – some offering efficient services, while others prey on unwitting customers.
What are the potential dangers of online insurance companies?
Non-personalised policies
Some online insurance companies may provide an automated policy, rather than a customised policy by an insurance professional.
No transparency.
Some online insurance companies may skip the process of explaining terms of coverage clearly. Make sure that you ask about fees involved. This may include origination fees, interest rates, as well as any prepayment penalties that may apply.
Lack of discount information.
Some of these companies may not be clear about how multi-policy discounts work, unless you ask about them. You could miss out on making considerable savings if you don’t ask about discounts.
No broker benefits.
Applying for insurance with online insurance companies can be convenient if you aren’t looking for the hassle of a broker. On the downside, you miss out on potential savings that a broker could have identified on your behalf. It’s important to make sure that you understand the terms of online insurance policies thoroughly.
Unscrupulous insurance companies
When shopping for insurance online, make sure that you check the reputation of the company. You’ll want to make sure that the company is financially stable before you sign any agreements.
