As a business owner, you have a million little things to do every day. From handling invoices to leading marketing initiatives, you’ve got a to-do list that’s a mile long.
So, if a tool or service looks like it can help you quickly and easily knock off a tedious task from your list—something as mundane as purchasing insurance—you'd try it. I mean, what could go wrong with an instantaneous insurance quote? More than you realize. Although we’re used to getting everything at the press of a button, some things are worth waiting for—especially when it comes to protecting your business.
If you’re thinking about using an instant quote, then be aware of the following issues.
New insurtech companies that have popped up know you’re looking for a quick solution for your insurance needs, and are profiting on your desire for a quick fix. In recent years, startups like Cover Wallet, Lemonade, Pie, and Hippo have come of age, promising near-instant insurance quotes for everything from commercial insurance to home insurance in a matter of minutes. In this article, we explore the drawbacks to using the instant-quote services, and why traditional brokers and insurance agencies are the best way forward for your company.
Why You Should be Wary of Companies Promising Automatic Insurance Quotes
Companies promising near-instantaneous insurance quotes don’t want you to be aware of what’s really happening behind the scenes. To safeguard yourself and your business, you need to be aware of the problems surrounding automatic insurance quotes before you move forward.
Online Insurance Quotes Can Be Incredibly Inaccurate
To generate a quote, the online insurance companies are forced to rely only on that information provided by the customer—whether or not that information is actually accurate. For a quote to be truly accurate, the insurance company must verify the information provided by the customer. But with an instantaneous quote, there’s no way to do that. The end result is nothing more than a quote that must be regenerated.
You Typically Won’t Have The Ability To Fine Tune Your Quote
With a quote that’s generated automatically, you have no ability to turn your insurance quote into something that reflects the unique needs of your business. Does your business really need that extra coverage for floods? Are you paying extra to protect your company from a product exploding, even though you have no physical product? With an automatic quote, you receive three to four coverage options that are simply the basic package offered to nearly all of the consumers.
There’s A Lack Of Transparency Into How Quotes Are Calculated
When you speak with a broker, you get a clear understanding of how and why you received a certain quote. Did that claim you submitted last year really affect your coverage price? Is the new car you’re thinking about buying going to triple your car insurance rate? By having a personal relationship with an agent, you can understand how your life choices will affect your insurance premiums. With an online quote, you get nothing more than a preset algorithm that doesn’t understand the details of your life.
You May Not Get The Best Price
With preset algorithms and basic packages, it’s hard to get the best price. Online insurance companies, as opposed to traditional brokers, aren’t going to shop around your insurance needs to multiple companies in the same way that a traditional broker will. With more quotes, you also have more options--options which can save your company money in the long run.
Why You Should Talk to an Independent Insurance Agency
Mike Dwyer is a Commercial Insurance & Risk Advisor, who specializes in Group Captive Insurance, and specialty insurance and risk management solutions for businesses in the construction industry.
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Leap | Carpenter | Kemps Insurance Agency provides Commercial Business Insurance, Employee Benefits, Life and Health Insurance, and Personal Insurance to all of California, including Merced, Atwater, Los Banos, Mariposa, Madera, Fresno, Modesto, Turlock, and Stockton.
CA License Number 0646081 | Licensed to do business in California, Arizona, Hawaii, Idaho, Montana, Nevada, North Carolina, Oklahoma, Oregon, Virginia, West Virginia and Washington.