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Getting Car Insurance: Brokers vs. The Net

Todays Date: December 10, 2018

Since the concept of insuring a car against road accidents became compulsory as well as common sense, insurance companies have issued policies. History proves that the first policy ever written for car insurance was recorded way back in’95 in the United Kingdom.

The car insurance industry has really expanded since the first policy was drafted. Car insurance has slowly joined other forms of insurance, including property, medical, and life insurance. Today, people are often overwhelmed with all the insurance premiums.

Finding insurance coverage has always been a frustrating manner. In the old days, it often involved a long trip from the rural setting to the large city where insurance offices were located. Today it’s much easier to contact insurance companies.

In the past, insurance companies answered the growing demand for car insurance by hiring brokers. These people were licensed and rich in knowledge of car insurance. They were also very friendly and open to meet with potential clients to discuss different policies.

Like any business, insurance companies only stay in business by making a profit. They are not overjoyed to discover their clients have either missed a payment or two, or are constantly late. So consequentially, they must demand full payment by the due date or an inactive insurance policy will result.

Insurance brokers really mean a lot to policy holders in the time of a crisis. Most people go throughout their life with no major accidents or only one or two. The insurance broker will handle the claim after the accident occurs. Brokers really need to meet the emotional needs of the policy holder during this time.

Usually they do, and consequently the policy holder forms a close bond with the broker. They continue to do business for the rest of their lives. The policy holder usually passes down the broker to his children and recommends the broker to others.

Some people consider it tragic that this type of relationship is dying out. The main reason is the internet. Brokers are making the move to online insurance, where consumers can compare quotes with a click of a mouse. Switching to online insurance often saves consumers between ten and fifteen percent of their annual insurance premium, so the savings are much welcomed.

Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal

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