The internet has made it easy to get auto insurance quotes. Most insurers allow you to get quotes for car insurance directly from their websites. Chances are you may get different rates from different carriers even with the same coverage. If you want to save your time and get some side-by-side comparison, insurance comparison websites can come in handy. A lot goes into car insurance quotes. And the more information you provide, the more accurate the quotes will be. Is it safe to get auto insurance quotes online?
If you are getting quotes directly from websites of legitimate insurers, your information should be safe and won’t be sold to a third party. They do not share clients’ information to solicit new business – although they do share some information on claims or insurance being declined.
But when you go to insurance comparison websites, your information may be sold as a lead. Do your due diligence work. Avoid them if you do not want to receive phone calls from pushy agents.
How to Tell the if a Insurance Comparison Site is Legitimate?
You may notice that quotes from different carriers may vary from one another – even for the same person with the same coverage. If you want to get the best deal, it is crucial to compare quotes from at least two to three companies. Insurance comparison websites are designed for helping you do this job with the least amount of time.
There are two types of insurance comparison websites: quote comparison sites and lead generation sites.
Quote comparison sites provide users with rates based on information submitted. These sites do not sell your information. The data you entered is transferred to the provider’s website to facilitate the purchasing process if needed be.
Lead generation sites, on the other hand, sell your information to their advertising partners – usually insurance companies or agencies. These sites lure you with seemingly competitive quotes and are not much help when trying to compare car insurance rates.
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Where Will My Data Go?
Apart from the information related to your car, such as vehicle make, year and model, claims record, driving history, these comparison sites will also ask you for personal information such as your ZIP code, age, occupation. In most states, your gender and credit history are also used to determine rates.
Quote comparison sites present users with rates – based on the information you provide. The data you entered is transferred to the insurance companies for the purpose of quotation only.
Most of these sites give you quotes on the spot. Some even allow you to customize the coverage from the search results and prices will change in real-time.
Some are not that straight forward, you may need to provide your email address and phone number to receive the quotes.
Lead generation sites, on the other hand, would collect and sell your information to their advertising partners – typically more than one insurance company at a time.
They may attract your interest with competitive rates. Some do not even give you car insurance quotes after you enter all the requested information. Instead, they provide you with links to access the insurers website where you can get actual quotes.
But it does not stop here – even if you do not click anything. If you leave your contact information, your data may be captured by the sites. And you are likely to receive a lot of follow-up calls.
Why Do They Ask For My Credit Score?
Some insurance companies may check your credit score in order to gauge the risk they’ll take to insure you. Your credit score may affect your insurance premium.
After all, insurance companies calculate premium based on data. Studies have found that people with lower credit scores are likely to file more claims or have more expensive insurance claims, while those with higher credit scores are less likely to do so.If you have a low credit score, you’ll often pay a higher premium than if you had a high credit score.
Insurance companies are only using credit score as one of the factors to generate the quotes. And credit score is not the only thing that affects your insurance premium – your claim history, driving history, location, car model, can all affect your premium.
This type of inquiry will not alter your credit score. And you’ll be able to check these inquiries on your personal credit reports if you request it.
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How Do Insurance Comparison Websites Make Money?
Most insurance comparison websites don’t sell insurance products themselves. Instead, they provide quotation service or useful blog content to their users for free in exchange for the traffic. They can monetize their sites with these income stream:
- Ads: By putting ads on their websites, they get paid when people click on the ads
- Affiliate marketing program: When the sites send people to an insurer and complete a purchase, it will receive a share of the commission
- Sponsored listing: they earn money from sponsored insurers who pay to have their products appear at the top of the comparison results
- Lead generation: They sell leads to third parties – mostly insurance agencies or broker
We are so used to getting “freebies” online. The truth is, if you are getting something for nothing, they need to make money from somewhere else. This is how their business model works and there is nothing wrong with making money by providing valuable service or content to their target users.
Who Should Get Auto Insurance Quotes Online?
Getting auto insurance quotes online is convenient and time-efficient. It is especially helpful when it comes to products like insurance where the quotes may vary from one carrier to another.
The good thing is that you can decide when and how you would do it. When you get an auto insurance quote online, you can see policy options laid out and are able to pause and resume the quoting process at your own pace.
If you don’t want to deal with agents, this is the option for you. But if you are a newbie and may get perplexed with insurance jargons, it would be a good idea to get some advice from an insurance agent or broker. But some may charge a service fee for doing so.
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How To Protect Yourself?
It all boils down to the general issue of privacy. And whether or not you are comfortable risking your data floating around the internet even if companies are using it or not. Getting car insurance quotes online, or even any of types of insurance, is quick and easy. But you may take the following steps to protect yourself:
- Do your due diligence work and visit reputable websites only
- Read the site’s policies on privacy and security
- Read Cookie Policy to check how your data will be used for
- Never give out your social security number
- Do not proceed if you are in doubt.
Final Thought: Is Price the Only Factor For Consideration?
If you decide to get car insurance quotes online, keep in mind that saving on premium isn’t always the only goal. You may also need to consider other factors like service quality, claim procedures, online and offline support, etc.
Admit it. Buying insurance is sometimes not the most enjoyable purchase in your life. There’s no doubt that getting quotes online will make your buying experience a lot easier. It is most important to get sufficient insurance that is based on your need. Talk to people with the experience, read reviews or even consulting an insurance agent may save you even more time and money. Good luck!
