Online Buying Increasingly Popular

An increasing number of insurance buyers are purchasing auto insurance online. The J.D. Power and Associates 2008 Insurance New Buyer Study finds that the 44 percent of buyers who bought auto insurance from a new insurer did so via direct channels (including insurer Web sites and call centers), a 3 percent increase on 2007. Among buyers who changed their shopping channel, more buyers also changed to direct purchasing methods (22 percent), compared with those who switched to using an agent (15 percent). However, the study also finds that buyers who purchase their auto insurance via local agents give significantly higher average satisfaction scores, compared to those who buy direct. Despite this, J.D. Powers notes that insurers are enhancing their Web site capabilities and that most prospective buyers cite the ease of shopping via a direct channel. Erie, The Hartford and State Farm are  the top three ranking companies among 18 major auto insurers in satisfying new buyers.  

Leave a Reply

Your email address will not be published. Required fields are marked *