Online quotes are often quick and help streamline the ability for the everyday person to get an insurance quote. This has been a great tool to help consumers readily gain insurance. There are specific challenges that present themselves that need to be understood to be able to utilize the personal access to rating software.
While this access offers ease of use, it also allows for gaps in knowledge that could have untold consequences for consumers. A problem we are seeing highlighted right now is that many consumers do not understand how limits of liability function. When there is no initial education on lawsuit protection, consumers may choose limits that do not adequately cover them. If they don’t understand what their current limits of liability are, they are much less likely to understand the other coverage within their policy. This leads to gaps in coverage that would otherwise not be present.
The absence of an agent prompting coverage questions adds another layer to this. Consumers could go for years with the wrong coverage because they went onto a website, got a quote, paid for it and then let it automatically renew. This wouldn’t be an issue, but lives change constantly and quickly. Many start with low coverage limits and the more assets they acquire, the more liability insurance they should add onto their policies. If one is not aware that the changes being made in their personal life could affect their insurance, they may become drastically underinsured. This could lead to not having enough coverage in the event of an accident and a subsequent lawsuit.
Depending on how familiar one is with their policy, using online quoting tools can be great! Understand that there are reports that are run before binding a policy. One is the CLUE report, the other is the DMV report. All companies run these and it may alter the premium if they find a ticket or accident that was originally unaccounted for. As a consumer, make sure to supply all pertinent information if using an online rating tool. This will make sure you get the most accurate rate!
