Buy Auto Insurance Online – Direct Auto Insurance

December 20, 2017 · Posted in General Articles on Car Insurance 

You may be wondering if direct auto insurance right for you. Perhaps you’re trying to cut costs these days and are evaluating your expenses for areas where you can trim your outgo and maximize your income. If that’s the case, then shopping for better auto insurance deals is a wise move.

The business model is called ‘direct’ because the customer deals directly with the company without the intervention of an agent. The customer gives up the security of personal, on-going contact with the same human in exchange for lower rates. Like all insurance, the trade-off is a gamble. If your claims are straight forward, you may well be happy to deal with a direct auto insurance firm.

Many direct auto insurance companies confine their reach to states or localities that mandate some variation on a no-fault insurance system for all drivers. Under no fault programs, the need for insurance agents is greatly reduced. Under no-fault legislation, insurance companies compensate their insured drivers (and the driver’s passengers) for their losses in an accident without the need for an assignment of blame.

In no-fault localities, the cost of damages and losses is covered for every driver and the driver’s passengers by the driver’s insurer. If an insurance company wants to claim negligence on the part of the other driver, a civil case must be initiated after the compensation has been dispersed. Insurers know their bottom well and rarely go to court, absent evidence of fraud or other mitigating factors against claim settlement, so civil cases are reduced.

The purpose of going no-fault is to reduce wait times for accident victims. The only kink in the pipeline is at the insurance appraiser stage. No-fault states typically avoid creating a bottleneck in the claims settlement pipeline at the appraiser by instituting state-run or licensed collision centers. For these reasons, insurance companies are willing to run in no fault states exclusively and offer no agents but provide attractive discount rates.

If there is an area in which one is vulnerable under direct auto insurance, it is in claims that are complicated by physical injury. The affects of a physical injury can continue throughout a person’s life. With an agent, the consumer has someone who is familiar with their case and can navigate the insurance process on their behalf. And the agent is available to do that at the start of the injury, when the consumer needs the help the most. It simply is not possible for a call center to take the place of face-to-face contact.

With more and more consumers become aware of options that are available for their insurance dollars, the direct auto insurance is gaining the upper hand. Many such companies now have claim agents that are assigned to the insured and remain on the case until settlement. When considering going with a direct auto insurance firm, check them out carefully – do more than get a rate. You can go to the Insurance Institute of America website and get more info on any direct auto insurance firm.

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