Millennials were probably the first generation to sour on the idea that, in order to buy something, you should have to talk to someone. The idea of picking up the phone and getting information from a salesperson was, at best, a time-waster — at worst, a social anxiety-inducing nightmare. To Gen Z and Gen Alpha, the concept of the “salesperson” is almost inconceivable. They expect to buy online, only interacting with another living soul in the event of a life-or-death emergency.
Folks who do still have the social skills it takes to make a call may laugh at the younger generations’ phobias. However, the fact is, they may know something you don’t when it comes to shopping around for a better deal. A salesperson isn’t always the most transparent or trustworthy source of information when it comes to getting a fair price. Here are some reasons shopping for insurance online could save you big bucks and lots of precious time.
Compare Prices in an Instant
There are two types of insurance agents: captive and independent, and they work in two different ways. An independent agent sells policies from a number of different companies, and works to find the best company and plan to meet your needs. A captive agent, on the other hand, can only sell you plans from the specific company they work for. In both cases, you usually end up paying a commission, though an independent agent can often find you the best deal.
The main downside to working with either type of agent is that you won’t necessarily see all the options available to you. Even independent agents still have contracts with the insurers they work for, and they may not have access to the best plan for you. When you shop online, however, you can do your own research and see all the prices right in front of you. You might still have to call for more details, but many companies offer car, flood, and home insurance quote options online.
Customize Your Coverage
Different plans — and different providers — may offer different coverage options depending on your specific needs. When shopping for insurance, you’ll need to consider specific risks like local weather conditions and possible Acts of God. You’ll also need a plan that’s appropriate for the type of dwelling you live in, such as a house, condo, or mobile home. Some policies are also designed to cover specific types of homes, like older homes with different coverage needs.
It’s also important to think about whether you want a higher premium and a lower deductible, or vice versa. Some plans let you pay more up front for more affordable coverage later, while others save you money unless an incident occurs. By comparing different plans and providers online, you can consider the full range of options out there. You may also be able to customize the types of damage covered by your plan, in order to save money on those less likely to impact you.
Shop for Sales and Discounts
When you shop for insurance online, you have the flexibility to make a decision exactly when you want to. You can shop around for seasonal deals or other promotional offerings, and choose to buy when the best price becomes available. Some frugal shoppers make a habit of switching car insurance providers every so often in order to get access to the lowest rates. They’ll compare prices online and switch to a new company every time their contract expires, to get lower rates.
While switching plans every renewal cycle can save you money on car insurance, it’s not always practical for other types of coverage. For homeowners’ insurance, it may be worthwhile to check with your current provider before you switch. You could be eligible for insurer discounts based on a number of different factors. For example, you might qualify for lower rates if you retire, renovate your home, install home safety features, or make fire-safe or eco-friendly updates.
Bundle With Other Policies
One of the easiest ways to save money by buying insurance online is to choose a provider that offers several types of coverage. For example, you can search the web for a company that offers home, car, landlord, and flood insurance. If you have an extra unit in your home that you rent out, for example, you might need coverage for that and your place. Getting coverage for both through the same insurance provider could earn you access to a bundle deal.
Another very common option is to get both home and auto insurance through the same provider. Bundling multiple policy types can save you anywhere between 5% and 30% on your total insurance costs. You may also be able to save money if multiple family members get their policies through the same provider. For example, you may be eligible for a multi-car discount if you and your spouse insure each of your cars through the same company.
Reading the Terms & Conditions
A small handful of customers may be able to save money through an agent — usually those with especially complex insurance needs. Most people, however, can find the best rates by looking online and comparing prices and policy terms. The most important thing to remember is that just because a price looks lower doesn’t mean it’ll actually cost you less. Read the fine print to make sure your specific needs are covered and that you won’t have to cover any hidden costs.
