Insurance broker or internet?

Question

is it better to use a insurance broker to buy insurance or use the internet. im asking this because im thnking of becoming an insurance broker but im afraid i'll just get replaced by the internet

Answer 1

There are lots of insurance brokers in every community.  And there are also what is called "direct" internet providers such as Geico and Progressive.  Lots of insurance brokers sell Progressive, but its also offered for direct purchase as well.  A broker gets commission to service his clientele.  A direct purchase doesn't include a commission which is why the cost is lower than at a broker.  But, with a broker, clientele get details, get quick service, get claims questions answered, get one-on-one information and the staff goes to bat for you on any issues: payment, changes, etc.

Direct:  you get lower rates; and you go to bat for yourself!  So when you get placed on hold for over 30 minutes searching for a service rep., and then you get an automated service instead, which includes claims problems, payment issues, etc., this is where lots of folks of running into troubles.

Answer 2

Broker!

insurance = protection

you want someone to hold accountable, someone to see and someone with good referrals, a history and a promise to stay there

Answer 3

I'm an insurance broker that sells on the Internet.  EhealthInsurance, SelectQuote, etc...are all just insurance brokers (albeit...much bigger) that sell on the Internet.  They have no advantage on price and consumers that buy through them are not taking advantage of adding a financial resource in their corner for free.

If you could choose between using a good CPA and doing your taxes yourself for the same price it'd be kinda ridiculous to take it on yourself.  In our industry the price is the price.  The consumer has to realize the advantage of dealing with a 'smaller' broker to get that boutique service and expertise that a large, online broker can't deliver.

AND, the car insurance business is MUCH different.  Going direct in the life & health business is the same price as using an agent, broker, etc....  The consumer saves nothing going through the Internet or direct.

Answer 4

Well, I think if you approach being a broker as a business instead of a job, you'll be better prepared for it.  Other businesses have been around and are still around after the internet.  There will always be some new idea or method of doing business, but being prepared for it is what's important.  

What ever business model you choose, you have to figure out what unique value you offer, and who that value is most appealing to.  Or you can figure out who you appeal to, and then find something unique to offer them.

Good luck.

Answer 5

The internet can be nice in some sense however its not the only way to go. I actually use the internet for leads and such but I go and personally meet with clients. I love it. They really enjoy it as well. They all have my personal cell phone number and know that they won't have to go through and automated system. This obviously is not something some of the major companies do but it works for me and my company and is rewarding more than just financially.

Answer 6

I am a broker and get many clients who were clients of online insurers.  The level of service, help, personal attention, level of caring, etc, is lacking at online companies.  It's easy to buy at an online company but if you have a problem it is more difficult to resolve.  

If you deal with a broker you know the person you are buying from.  They know you and your situation.  And you know where to find them!

So there is a place for you if you are good with people.

Regards