Car Insurance Market

Monday, July 12th, 2010 at 3:14 pm

Direct Car insurance is the option of buying your car insurance directly from an authorized insurance company instead of going through insurance middlemen and independent agents.

To draw an analogy for the new business model, it is like choosing between a general medical practitioner and a specialist. A general practitioner would have an idea about the actual root cause for a symptom compared to a car insurance specialist, who would be able to diagnose the exact nature of your problem and prescribe a solution that would have a better result.

Something similar happens when you choose a direct car insurance policy over an indirect car insurance policy. One may argue that it is far easier to get quotes and information on car insurance policies from multiple indirect sources, as there are plenty in the car insurance market. It may also be a better idea as these indirect car insurers offer a wide variety of services in order to keep their car insurance policies better than the rest.

But all of these options come with their own prices. Lot of people forget to remember that nobody including middlemen and independent agents and such indirect car insurers are not to help people for charity. They have their own commission out for their work. Even though it may seem that there are multiple services for such a good affordable price, you are still paying a lot. The independent car insurance agents are carving out their margin into the quote. You must remember the bigger these companies are, the bigger their hidden costs.

Direct car insurance agencies, on the other hand offers lot of benefits. Going to them first will enable you to be in touch with them directly. These are generally large companies with value added services list emergency pick up vehicles, partnership with official car service centers, legal advisors and such important services. Direct car insurance providers do not outsource their services to other third party insurance agencies. Even if they do, they do with clear policies and procedures, without compromising on their quality of their service. This ensures efficiency in all their services like emergency car pick up, settling any legal claims and providing interim relief through a rent a car services etc.

When you buy a policy from a direct car insurance agency you also save on costs. You can get cheaper car insurance with some very good facilities. Remember it is not the amount of services that you can get but whether those services can be used when you need them. You may even be able to work out cheaper premiums for flexible periodic payments as well when you go to direct car insurance agencies. And to top it off you may even get some free extra covers along with your standard cover as well. These come in handy and end up saving you some money at a later stage. For example you may get free extended territorial cover or the direct car insurance agency may offer extended legal liability to family members. These would be specific to the district of residence of course.

In case of insuring multiple cars with a direct car insurance agency, they would be able to offer better premium with better value added services.Â This would translate into reduction in your associated costs and this is true if there is one direct car insurance agency that has to be coordinated with at all times. You would need to do due diligence with few car insurance agencies which provide direct car insurance before making a decision. This would give you good idea about the bundle of services provided by different insurance agencies and you would be able to make a comparison between them and take an informed decision. So last but not the least, you would be able to save your pocket by approaching direct car insurance agencies, which would provide end to end solution for your needs!

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