Direct car insurance is a new development in the auto insurance industry. Until recently, car insurance was bought solely from insurance agents. The problem with this form of insurance marketing was that, many a times, people were misled into buying coverage that didn't necessarily meet their insurance needs. Agents were known to gloss over facts and charges of the policy they were selling you, just to earn extra commission.
Direct car insurance has come as a refreshing change in the auto insurance business. It is the alternative of buying insurance for your vehicle directly from authorized insurance companies. Simply put, it eliminates the role of insurance agents in the process of buying coverage. You directly get in touch with the company from whom you intend to buy the insurance. This is mainly done through the internet. Online insurance is nothing but direct insurance. Sites that offer quotes and let you buy policies online are usually the official websites of the insurance companies themselves. After comparing quotes and features, you can buy direct car insurance by simply scanning the required documents and sending it to the insurer of your choice. Once the documents are verified and you make online premium payments, the insurance company will issue your policy through the mail.
The primary reason for the growing popularity of direct car insurance is the value for money that it brings. Direct insurance purchases cut out the middlemen. In effect, what you get is good coverage at cheaper premium rates. Traditionally, the commission that is paid to insurance agents is embedded into your premium. In direct transactions between you and the insurance companies this element of commission is removed. Thus direct car insurance gives you lower premium rates. What adds to its sheen is the fact that you know exactly what you are getting into. All the required literature about the product is provided by the insurance companies. Most companies also have customer care numbers available on their sites to help you with any queries that you may have. In essence, you are not misled about your policy or its benefits and terms by a broker looking to make some extra commission.
Direct car insurance can give you the flexibility that you are looking for in your policy terms. When you buy insurance directly from an insurer you can make payments in the method and mode of your choice. These days, many insurance companies also offer their direct customers some extra cover benefits free of charge. These are over and above the standard coverage that comes with the policy. Many companies also offer their direct customers the freedom to shop for the benefits of their policy. You can choose a combination of paid benefits added to the standard coverage terms. This way you get to tailor your policy to suit your budget with benefits that may come in handy in the future.
Before deciding on a sales channel to buy your policy, remember that direct car insurance customers get the same level of service as customers of agents. Moreover it should be remembered that in case of accidents or claims, an agent has no involvement in the settlements. There are special departments that handle policyholder claims. Direct purchases give all the standard benefits of auto insurance at more economical rates.