Consumers still prefer purchasing auto insurance with direct help of insurance sdales agents although direct carriers are gaining ground. The results are from a survey by an online auto insurance comparison site, CoverHound.com. The report indicates that car insurance shoppers still prefer to work with a local agent when buying a policy versus going online or via the telephone through a direct carrier.
Results of the survey are as follows:
- 39% of shoppers prefer to deal with a local agent,
- 32% prefer to work with carriers directly, and
- 29% at this point are still indifferent.
Large carriers, icluding the likes of American Family, StateFarm, and Allstate who primarily sell insurance through local agents still dominate US market share. However, national direct insurance carriers such as GEICO and Progressive, who focus heavily on the direct-to-consumer model, continue to capture more of the market, according to CoverHound.
Of course the results indicate a wide age gap in the users of direct insurance carriers versus the tried and true large insurers that have dominated the auto insurance market since its earliest days. As one would expect, younger shoppers in the sample were most likely to prefer to work with carriers directly. On the flip side older shoppers prefer to deal, as they always have, with a local agent.
A full 50% of 18-25 year olds surveyed indicated that they preferred a direct carrier to a local agent, while only 27% of 41-50 year olds held a similar preference. Younger buyers are more comfortable making purchases online and using direct insurer's comparative or informative new-age tools (not unlike About.com). This is just another example of the transformations taking place in the insurance market and the effect of the digital age.
The age gap does perhaps provide a silver lining however to those large insurers. As the younger generation ages there insurance needs will grow. At that point the benefit of a personal relationship with a trusted agent may be the impetus needed to closely review all insurance needs. This trigger point may be in the purchase of a new home as individual's need homeowner's insurance or when they get married and have children and find the need for life insurance.
Agents and carriers with diverse and multiple product offerings may utilize personal, comprehensive service to their advantage. The more insurance coverage individuals need, it makes sense that the greater personal interaction and advice is helpful to consumers.
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