Understanding price comparison websites for insurance products

Understanding price comparison websites for insurance products

Suppose your auto and home insurance policies are up for renewal. Maybe, with your first baby on the way, you’re thinking about life insurance? Perhaps you are looking for civil liability insurance for your business?

Your initial reflex might be to shop around on the Internet for these kinds of financial products.

And you’ll certainly find a number of sites that compare the various products of several insurance companies.

How do they work?

Whether you’re looking for life, auto, home or business insurance, the website will start by asking you several questions to help define your needs and guide you to the best product.

Each shopping bot asks different questions about your vehicle, home or your health.

These are examples of the kind of information you might be asked:

Auto insurance

Home insurance

Life insurance

Business insurance

  • Make and model of your vehicle
  • Your postal code
  • Your driving record
  • Type of property and other features
  • The year you moved in
  • Whether used for business purposes
  • Type of heating
  • Claims history
  • Value of home contents
  • Your age
  • Your sex
  • Whether you are a smoker
  • Your health
  • Your alcohol and drug consumption
  • Your job
  • Whether you take part in any dangerous sports
  • Your role in the company
  • Your sales figures
  • Your sector of activity
  • Number of years in business

The shopping bot will compare similar insurance offers from the insurance companies it partners with.

It goes without saying that you should carefully research the insurance product you are interested in before buying.

Click for a quote!

The resulting quotes can vary in format.

Some comparison sites produce a turnkey offer where the price is displayed and you complete the purchase online.

Others finalize the purchase by having an advisor call you to make sure your needs are covered and to discuss the payment method.

Why shop for insurance online?

Anyone who has ever purchased insurance knows that it can take several hours to obtain just one quote.

This is where comparing websites can really improve efficiency. You just enter your information once to generate a comparison of prices across various companies.

It is important to understand that only the insurance quotes from the shopping bot’s partners, and not from all the insurance companies, will be shown.

To make the online comparison experience simple and user-friendly, specific questions that might affect the premium rate will be referred to the insurance company. For example, if you run a business from home, some insurers might charge an additional premium or might not insure you at all.

Are online quotes the way to go?

This really is a question of personal preference.

Even though shopping bots do not provide quotes from all insurers, they allow you to compare prices more easily and choose the product that is best for you and your budget.

If your goal is to save time, then insurance shopping bots can be very useful.

If you prefer to discuss a customized insurance need, then consider calling an agent or advisor on the phone or arranging a meeting with them.