Every insurance company has its own business model, each one geared to a specific market. You have two options when looking for auto insurance quotes.
Today, I’ll be talking about call center companies for insurance. These are the easiest way to get an auto insurance quote. Simply dial, enter your information, and you will receive a quote right away. Call center insurance companies tend to be more concerned about price than the quality of their services. We all want the lowest rates possible.
Call centers target young drivers who are looking for affordable car insurance. Call centers are often the best place to find the lowest rates for a 16-year-old who has just obtained their driver’s license and wants to drive their Chevy cavalier. Call centers can offer competitive rates to 16-year-olds, but here’s a hint: If your parents live with you, you can get a quote through their insurance company. There is a good chance that your parents have multiple car and multi-policy insurance discounts. You will still be eligible for discounts even if your car is on a separate policy from your parents’ cars. After adding our multi-car or multi-policy discounts, young drivers can save over $1000 on car insurance. Call centers are often able to offer very competitive rates for young drivers who don’t have this option.
Group discounts are another hallmark of call centers. While captive agents/brokers may offer group discounts, the majority of call centers have monopolized this market. You may be eligible for a group discount if you are a corporate employee, a student, or an alumni of a college. You’ll be amazed at how much you can save by finding out which insurance company it is.
Call centers offer superior online services than independent agents and brokers. They can provide everything you need, from quotes to policy information and even printing your liability cards (pink sheets) right from your computer. This service is not available through a broker or captive agent.
You may be wondering what the downside of call centers is. We all know the answer. Personal attention is lacking. Imagine that you have a claim. You call the 1-800 number. After you have spent thirty minutes explaining the situation, they will process your claim for you. Then you hang up. You can call them again the next day to inquire about rental cars, accident benefits coverage, or any other questions that kept you up at night. How likely is it that you’ll get the same person on the phone every time you call? You will have to introduce yourself to the customer service representative every time you call. This usually leads to the “well, that’s not what they told me yesterday” headache.
One downside to call centers is their lack of sales experience. Let me start by saying that I believe a call center is an excellent place for brokers and insurance agents to begin their careers. However, I am looking at it from the customer’s perspective. Most call center agents are hired young and it is often their first job within the insurance industry. After a few years of experience, most call center agents will decide that selling insurance is the right career.
Call centers are the right choice for young drivers looking for the best rates or someone who prefers to do business online. Call center insurance companies may not be right for you if you don’t want to deal with multiple people trying to solve the same problem, or if you prefer an experienced representative.