Most direct insurance companies have already adopted the internet which allows consumers to obtain insurance rates and even purchase policies online where permitted by state laws. Some direct insurance companies have even evolved from the internet. One example is http://www.Esurance.com Insurance Company which evolved online and compared to the traditional brick and mortar locations, it markets its website for the consumers’ insurance needs.
Insurance Brokerages are following the footsteps of direct insurance companies by expanding their products online. One such brokerage is Auto Solutions Insurance Services in the state of California. In early 2007, the brokerage launched http://www.OnlineAutoInsurance.com which allows consumers to compare rates insurance from several insurance companies such as Progressive, GMAC, AIG, and Infinity among others.
In an interview with Cesar Diaz, the broker of Auto Solutions Insurance Services he states: “We feel that the future of auto insurance will be based 99% online! Consumers are finding the convenience of comparing rates online from multiple insurance companies and the benefits of having unlimited information at their fingertips.”
Statistics show a tremendous growth in consumers obtaining auto insurance quotes online. From 2005 through 2006, an estimated 70 million auto insurance quotes have been given online, and increasingly, people are finding the confidence and security to not only to receive quotes online, but to purchase the auto insurance policy online.
In the first few months of 2007, statistics show a major increase in consumer online shopping. Just in the first quarter, there has been an increase of 27% in the number of auto insurance quotes obtained online; furthermore, since 2006, there has been an estimated 45% increase in online policy purchases. Consumers are increasingly becoming more comfortable making financial purchases online, which indicates a steady growth for the future.
