If you’re like millions of other people across the country these days, you may be looking for ways to economize and stretch your dollars. If so, you may want to take a look at direct auto insurance as an alternative to using the traditional insurance agency for insuring your car.
Would you trade lower rates for dealing with a website rather than a human being? If you are considering direct auto insurance, that’s the question you have to ask yourself. Two factors have combined to create direct auto insurance: no-fault insurance and the Internet. With direct insurance, you deal directly with the insurer rather than through an independent agent. Cutting out the middleman allows direct insurers to offer lower rate. Some provide offices; some are strictly available over the phone or across the Internet.
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.
With more and more consumers become aware of options that are available for their insurance dollars, the direct auto insurance is gaining the upper hand. Many such companies now have claim agents that are assigned to the insured and remain on the case until settlement. When considering going with a direct auto insurance firm, check them out carefully - do more than get a rate. You can go to the Insurance Institute of America website and get more info on any direct auto insurance firm.
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