With the advent of technology, one can now even transact auto insurance through the internet.
A 7 percent increase in online car insurance policies purchased through online transaction was noted in US in 2008, despite the apparent decrease in consumer demand brought about by the economic crisis.
In a study released by comScore.com, a leading company in evaluating online transactions, businesses and similar web activities, it revealed that in 2008, there was a remarkable increase in online auto insurance market. Customers requested for 32 million online quotes and bought an enormous 2.4 million auto insurance policies only during the entire 2008. Although there was a slight decline of one percent in the number of requests of quotes online due to the poorer consumer demand in the present economic conditions, there was still a remarkable seven percent increase in the area of auto insurance policies purchased online. This is only one glaring proof of the importance and effectiveness of the internet as a medium for transactions.
In 2007, online auto insurance policies purchases recorded only a number of 2, 145 while a number of 2, 304 was recorded in 2008, thus the seven percent increase. The minimal decrease in online quotes requests, on the other hand, was when the number was pegged at 32, 109 in 2008 from 32, and 353 in 2007.
ComScore Vice-President Kevin Levitt tells that despite the poor conditions of consumer demand in the US and the industry of auto insurance being yet feeble to combat the impact of such phenomenon, the number of online purchases of auto insurance policies is increasing. The negative state of consumer demand has also weakened the business of auto insurance since fewer and fewer people are buying cars. Yet, Levitt assures that the auto insurance industry would still survive because of the presence of internet which is becoming a vital tool in making online transactions for the car insurance industry.
Called as E-servicing, utilizing the internet to do transactions also provides a way to save transactional cost not only for the customer but also for the auto insurer. Since the transaction is done on an online basis, payments and policy arrangements and negotiations are also done online thus shortcutting time and money yet maintaining efficiency.
Indeed, E-servicing has promoted a more convenient way to carry on the auto insurance industry. It pioneered a trend that is beneficial for both the customer and insurer in ways such as it reduces time and eliminates the hassle of discussing face-to-face auto insurance policies. Consequently, this online transaction also reduces paper transactions. Customers, once able to secure their own auto insurance policy, can also directly control their own policy through E-servicing. Their direct control over their policy allows them to view and change insurance coverage, add or remove a driver, change an address and add or remove a car. On the part of the insurer, on the other hand, he is able to maintain a healthy business relationship with his client by reducing the cost of service.
Truly, technology has changed the face of auto insurance industry, making this vital car requisite almost accessible to everybody.