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so is it cheaper to buy insurance online
or is it cheaper to buy insurance
through an
agent well that's a little complicated
but i've got the direct answer for you
and then
i've kind of got a rebuttal to that
because there's one company that i'm
aware of that actually does the opposite
so let's dive right into it the reason i
say it's a little complicated is because
there's really
three main pieces of ways you can buy
insurance so there's through
online which could be considered the
cheapest route
but then you have to know everything you
have to know exactly what coverages you
want
what you need and the online systems
aren't that intuitive
or at least they're designed to kind of
package things
so that you get the bundles that the
companies want you to get
and it's fairly difficult to break them
apart and then the question at the end
of
the process is if you have to call them
to change the bundle and have them fix
it there's usually someone you can call
but do you lose that discount the second
part is where
the agent is involved where it's an
exclusive agent
and they handle that specific company
and they sell that specific company
and even if you buy it online nowadays
they even give you to that agent
as a customer and then they handle your
book they just get paid on the back end
a little bit differently and less
because they didn't get the lead or your
information
and the third way is through independent
agents where they work with tons of
companies so they have to fight the
companies to get the commissions
at the levels they want so the biggest
question that we're answering is
does that agent if you go through them
and we go through
let's say progressive or aaa or if we go
straight to
aaa.com or progressive.com or any of
these companies
which one is the least expensive do we
pay a fee for going through that agent
that's kind of where there was a little
bit of a insurance joke going around
where
there was a commercial kind of
rebuttaling another commercial about
getting your hands out of my pocket
taking my money essentially what they
were talking about
because they had you in their hands so
to speak so that all spurred around
because
they all know that when you go directly
to an agent
it's usually not less expensive mainly
because what happens is if you go direct
to
com or 1 800 numbers and we're calling
aaa ourselves or calling progressive
ourselves or calling anybody ourselves
or typing them in that there's no
difference in commission
what they've done is the companies
pocket that extra money that extra 100
or whatever the case is and they just
make more money
and that goes towards the build out of
those websites and the hiring the
service people they're essentially
you're technically going through
agents so to speak but they're not
really agents because they're not
trained the same
they don't do it constantly where they
have to focus on
how to get better and build more value
they're more based on
come in clock in do what you do go home
and it doesn't affect you because it's
not their book of business it's the
companies that they're selling
the agents are more involved and more
focused because it's their book
they get paid renewals and renewal
commissions over and over and over
so it makes sense for them to take care
of you but not only that
it makes sense for them to give you the
better coverages without going overboard
because there's a legal aspect
and a code of ethics that they have to
follow and that's where you see some of
the negative reviews where
some of them don't follow that so don't
worry i'm going to go with the last part
and tell you the other company that does
the opposite where you can
buy it online that's cheaper and i've
actually done a few reviews on them so
you'll get to see that as well
but what happens is when the agents get
involved
it can be a really good experience
especially if you're going through
independent
or exclusive they're both fine it's just
that if you're going exclusive which is
your
all states your state farms they only
sell one product
you've got aaa does have exclusive and
independent agents they do both
so some are just aaa and when you go
through those guys
that's all they can offer you what
people got frustrated with is they
didn't want to keep picking up the phone
and spending four hours in a day
doing all that leg work unfortunately if
you're in a state that
state farm is competitive or farmers is
competitive or
those companies are competitive like
geico they're their own company
and so your only option is to call each
one and find out
more often than not as we've gotten a
little bit lazier or
we just don't want to do the extra work
we've got other things that we're
focused on then the exclusive agent
comes into play
where they work with five to six to
seven companies
actually if you look down the link below
there's a quote you could fill out
and that company works with up to 17
companies at the timing of this video
and so you call one agent or you fill
one thing online they just click some
basic data
and then they want to talk to you and
it's like a 10-minute phone call
15-minute phone call max pending what
you actually need as far as coverage if
you're adding a boat and a motorcycle
and a home and all that
that's a half hour phone call right so
just if you give it enough time
or what most people do is the ones that
are busy they'll just call them up
they'll say hey great i'm going to email
you to my deck pages
and then they just send you their deck
pages and let you work on it on the
background
so those companies don't mind doing that
they actually prefer to see what
coverages you have so they compare and
see if it's competitive
and most of them are going to give you a
really honest answer but those agents
you don't pay anything extra
to have that benefit the reason they're
doing it is because they're gonna get
renewals they're building
a future where if they have a thousand
to two thousand customers
they're set they're in the six figure
income and they're often fined and they
live in their world
where you're only paying a small portion
of it which you would have already paid
to the main company anyways so who's the
one company that i know of
that does this where you can bypass all
of this and get a discount
well it's progressive progressive is
getting ahead of the trend which i'll
actually link a video at the end of this
that goes over that
and one of the things that they do is
they'll give you up to an eight percent
discount if you go online and buy online
and do the whole process on your own
there's an actual discount now that
discount i believe falls off the
following year or at the renewal
so keep in mind you may save a hundred
to two hundred dollars
but what's the given the take having
that advice or that agent not
necessarily just giving you the right
coverages
but when problems arise and you have a
claim that you don't agree with
there's nobody to fight for you who
would you want on your side
you the guy that knows what you're doing
and called progressive or went online
and did progressive save some money got
a great policy and that was it you
didn't need them and now you have a
problem you're fighting for that claim
or the guy or company that has written
10 million dollars worth of business
with them
and now there's a problem with one of
their customers and they don't agree
it's not that they're going to tell them
different answers there's going to be
the same fight either way
but at the end of that process who do
you think
is going to have more leeway in that
conversation and i know some of you are
going to comment below that shady that's
wrong this is the way
it's not even the fact of right and
wrong we're not talking about that
situation
it's the fact that who has the right
phone number to call
who can talk to the district manager who
can talk to the guy above that guy
you can get to the supervisor and that
supervisor supervisor
and maybe there's four other supervisors
that you have to figure out
or just hire a lawyer to do it but at
the end of that process
this guy can bypass all of that and go
right to the right person
so it's a matter of knowing which route
to take not necessarily
having leeway to say well because i have
10 million dollars of business
i think i should get a better claim for
my guy that's not the situation
this guy is built also off of claims so
he's not apt to
falsify anything one you lose your
license it's unethical
and the fact that you're doing that
hurts your reputation with that company
so when you renew your licensing or
renew your book with those companies
they can choose to end that contract so
they have a little bit of an obligation
as well
so long story short sure there's an
online discount shoot there's even a
company called root insurance
the video's up here if you want to learn
about them that goes over that that
actually they only do online now i
actually love progressive and
i will show you a video here where i
ended up doing a quote with them and
saved about 52
just short of on my car insurance it was
crazy because i've shopped multiple
years
and this was the first time i actually
got a really big discount
there was a test drive involved and i
was testing out a program but at the end
of that whole process
with that eight percent discount for the
online quoting and online purchase
i was able to get a really good rate
with them so i'll link that video here
if you guys want to see that
otherwise there's a ton of options if
you like your agent and your that's the
best route
you can ask them straight out what their
commissions are in most states they have
to disclose any earning incomes that
they have
so if you want to see what portion is
going to them and what portion is going
to you
you have that option and most of the
time they're going to tell you that
i can't tell you for sure if some states
don't allow that but i'm pretty sure i
know when
you actually sign paperwork that usually
there's a disclosure
that doesn't tell the exact amount but
it tells how the agent actually gets
paid
so at this point here's where you guys
can help if you stayed i love it let me
know in the comments below
but also tell me of a company that you
know of that may offer an online
discount i can tell you that some of the
companies that i've worked for in the
past that were more
kind of exclusive but they gave an
online discount when you
started the quote online but it carried
over if you called them
so you got the best of both worlds you
could start the quote online
get that six to eight percent off and
then make a phone call to the 800 number
and they'll pull up that quote
and then edit it to make sure all the
coverages are correct you don't lose
that discount when you go that process
would be interesting to find out if you
guys have somebody or know of anyone
definitely put those in the comments
below otherwise i appreciate you guys
stopping by hit the like
thumbs up if you're interested in more
insurance tips to save you time and
money
definitely subscribe otherwise i'm mark
with think insurance
i'll see you in the next one
