Direct Car Insurance allows you to purchase your insurance directly from the company, rather than through independent agents or insurance brokers.
Let’s take an example to illustrate. There are two options available to you if you have pain in your joints. Either you go to a general physician who will recommend medications that will ease your pain. You can also go to an orthopedic specialist who is trained in treating diseases related to bones. The bone specialist will likely be able to determine the exact cause of your problem and recommend some exercises or medicines that can immediately improve your condition. Although the general practitioner may have an idea of your condition, they might not be able to treat it.
It is similar to what happens when you choose direct car insurance over an indirect policy.
It may be easier to obtain quotes and information about car insurance policies from several indirect sources than there are in the market. This may be a good idea, as indirect car insurers offer many services to make their car insurance policies more affordable.
However, this comes with its costs. Remember that intermediaries, independent agents, and other indirect car insurance companies are not charitable organizations. They are clearly looking to make a profit. Although you might be offered multiple services at attractive prices, it is important to remember that you will pay a higher rate for them. Independent car insurance agents make a profit by charging more for the quote. Hidden costs are more expensive when these independent car insurance agencies are larger.
Direct car insurance agencies have their advantages. Direct car insurance companies will put you in touch directly with the provider. These companies are often large and have in-house services such as emergency pick up, tie ups to official car service centers, legal advisers, and other important services. These direct car insurance providers might not need to outsource their services for other car insurance agencies. They have clearly defined procedures, even if they do. This eliminates the potential for delays in emergency car services, claims settlement, and interim relief via rent-a-car services.
You can also save money by purchasing a policy directly from an insurance agency. Some of the best features can be combined with cheaper car insurance. It is not about the number of services you can access, but how easily they can be used.
Direct car insurance agencies may be able offer lower premiums and flexible periodic payments. You may also get additional coverage free of charge in addition to your standard insurance. These extra covers can save you money later on. You may be eligible for extended territorial coverage or extended legal liability through a direct car insurance agency. These would only be applicable to your district of residence.
Direct car insurance agencies may offer a lower premium if you have more than one vehicle. This will help you save money and make it easier to have only one direct car insurance company that you need to coordinate with at all times.
Direct car insurance is offered by a number of car insurance companies. You may need to compare prices before making your final decision. You will be able to compare the offerings of the various direct car insurance companies in the market. Remember, direct car insurance is more profitable for your pocket than the bigger picture.