The Internet’s development has transformed it into a viable marketplace, and no industry has benefited more than the auto insurance industry. Yahoo received about four million searches for “auto insurance” in May of 2006. Progressive, eSurance, and Geico are three of the country’s most prominent insurance businesses, and they sell primarily through the internet or by phone.
Other popular websites on the internet provide several quotes from regular insurance companies but without the support of an insurance professional. Those sites that offer quotes will often delegate the sales component of the customer interaction to the chosen insurance provider.
Exact figures are difficult to come by, but putting together a number of bits gives us a good picture of the sector. According to Forrester Research, 30% of all Americans used the Internet to research vehicle insurance in 2004. By 2005, 16% of the population was not just conducting online research but also purchasing auto insurance.
The very low proportion of individuals making online purchases in comparison to the amount of Internet research and the success of online businesses highlights a key aspect of the company. It is still difficult to complete and purchase auto insurance online. Many consumers will conduct their research online and then call to finalize the process. Personal experience indicates that the insurance must conduct a fast search on your driving record before locking in prices, which is much more rapidly completed in a live interview.
Every major insurance provider has a website where you can get a quote. Some people, albeit a small percentage, will complete an insurance contract online. And, because of the Internet and the web, firms like Geico have climbed to the top ten auto insurance sales companies. eSurance and others have the particular benefit of limiting their expenses to website upkeep and the operation of a high-quality call centre. They don’t have to pay agent commissions or operate storefronts.
There are also some good websites, such as http://Insurance.com, that can give rates from numerous well-known insurance firms on demand. These sites generate traffic through web searches, the use of a large volume of material to get keyword replies, and the purchase of online advertising. These websites often include libraries of industry knowledge, shopping trends and tactics, and other advice sections. The insurance company sites also provide supporting information, but the multiple bid sites rely significantly on it to drive traffic and bring in inquiries that result in referrals.
Geico and eSurance, on the other hand, actually invest in television advertising. Geico has grown to be so powerful in the sector that its commercials may be seen on prime-time TV shows, which are quite expensive for advertisers to air. eSurance has become a dominant presence with its cartoon character Erin, purchasing TV commercials on less expensive shows in large quantities.
There has been a lot of media coverage recently regarding auto insurance premiums reducing. Much of the blame is attributed to tight competition and inexpensive pricing provided by internet suppliers. Even if the purchases are completed offline in some way, it is reasonable to argue that online auto insurance represents a significant component of the industry. Sales tools will eventually make online purchases as simple as rate research.