You've probably seen all the commercials on television for direct auto insurance ranging from talking lizards to being in good hands. They make it sound like the best thing since sliced bread. It may be a no-brainer for the DIY crowd, since, you'll be negotiating the insurance path without an personal agent. But rest assured, as they say, even a caveman can do it!
In direct auto insurance or home insurance, you deal directly with the insurance company without the buffer of an insurance agent. These types of firms have been popping up on the Internet over the past half decade. They offer discount rates and primarily an online presence. 1-800 numbers are provided, and some have actual bricks and mortar locations. Direct General Insurance, for example, has 480 locations over 12 southeastern states in the US.
Many direct auto insurance companies confine their reach to states or localities that mandate some variation on a no-fault insurance system for all drivers. Under no fault programs, the need for insurance agents is greatly reduced. Under no-fault legislation, insurance companies compensate their insured drivers (and the driver's passengers) for their losses in an accident without the need for an assignment of blame.
Which party pays the cost for damages and losses incurred in a traffic accident is determined by a finding of fault provinces and states without no-fault legislation. As of spring, 2009, there are twelve states in the US with some form of no fault auto insurance; Massachusetts, Minnesota, Utah, California, Kentucky, Pennsylvania, North Dakota, New Jersey, Hawaii, Florida, Kansas, New York, and Michigan.
The intention behind no-fault insurance is to ensure people aren't left without recourse after an accident while insurance companies fight over which driver was at fault. In case where criminal charges have been laid, insurance settlements sit on a until the person charged has their day in court. By going no-fault, a jurisdiction attempts to streamline and speed-up the settlement process.
If there is an area in which one is vulnerable under direct auto insurance, it is in claims that are complicated by physical injury. The affects of a physical injury can continue throughout a person's life. With an agent, the consumer has someone who is familiar with their case and can navigate the insurance process on their behalf. And the agent is available to do that at the start of the injury, when the consumer needs the help the most. It simply is not possible for a call center to take the place of face-to-face contact.
All things considered, going with a direct auto insurance firm rather than through an insurance agent is a risk - reward question. If you are adequately covered, are the savings worth having to act as your own agent? That is the question you'll need to ask yourself, but then again, millions of satisfied customers have asked and answered that same question in the affirmative.
In direct auto insurance or home insurance, you deal directly with the insurance company without the buffer of an insurance agent. These types of firms have been popping up on the Internet over the past half decade. They offer discount rates and primarily an online presence. 1-800 numbers are provided, and some have actual bricks and mortar locations. Direct General Insurance, for example, has 480 locations over 12 southeastern states in the US.
Many direct auto insurance companies confine their reach to states or localities that mandate some variation on a no-fault insurance system for all drivers. Under no fault programs, the need for insurance agents is greatly reduced. Under no-fault legislation, insurance companies compensate their insured drivers (and the driver's passengers) for their losses in an accident without the need for an assignment of blame.
Which party pays the cost for damages and losses incurred in a traffic accident is determined by a finding of fault provinces and states without no-fault legislation. As of spring, 2009, there are twelve states in the US with some form of no fault auto insurance; Massachusetts, Minnesota, Utah, California, Kentucky, Pennsylvania, North Dakota, New Jersey, Hawaii, Florida, Kansas, New York, and Michigan.
The intention behind no-fault insurance is to ensure people aren't left without recourse after an accident while insurance companies fight over which driver was at fault. In case where criminal charges have been laid, insurance settlements sit on a until the person charged has their day in court. By going no-fault, a jurisdiction attempts to streamline and speed-up the settlement process.
If there is an area in which one is vulnerable under direct auto insurance, it is in claims that are complicated by physical injury. The affects of a physical injury can continue throughout a person's life. With an agent, the consumer has someone who is familiar with their case and can navigate the insurance process on their behalf. And the agent is available to do that at the start of the injury, when the consumer needs the help the most. It simply is not possible for a call center to take the place of face-to-face contact.
All things considered, going with a direct auto insurance firm rather than through an insurance agent is a risk - reward question. If you are adequately covered, are the savings worth having to act as your own agent? That is the question you'll need to ask yourself, but then again, millions of satisfied customers have asked and answered that same question in the affirmative.
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