How To Find Out if an Online Insurance Provider is Reliable

It can't be denied that the advent of the internet changed our lives for the better. Whether you want to shop, pay your bills, socialize or find information about the things you’re interested in, the internet makes everything infinitely easier.

How To Find Out if an Online Insurance Provider is Reliable

Most people go online on a daily basis for all sorts of tasks and they feel comfortable and safe while navigating the internet. However, when it comes to purchasing insurance online, a lot of them are reluctant.

The idea of purchasing insurance from a company that operates entirely online and has no physical branches can be somewhat daunting. People find it hard to trust insurers without meeting and having a face to face conversation with them and for good reason. When working with online insurers you’ll have to provide sensitive personal information to a company you don’t know anything about.

Still, those who are on a tight schedule or can’t make a million trips to different providers will jump at the opportunity to buy insurance fast and easy, and working with an online insurance company or InsureTech can offer these benefits and more. Luckily there are a lot of reputable online insurers out there and chances are you’ll find one that will suit your needs. But how do you know that the online insurer you choose is actually reliable and you won’t run any risks by doing business with them? Research is key and knowing what to look for when searching for an online insurance provider can help you stay safe.

Online insurers vs traditional insurers

Before we share our top tips for finding a trustworthy online insurance company, let’s see what differentiates them from traditional insurers. InsureTechs represent an alternative to traditional insurance companies and come with a great deal of benefits to meet consumers’ growing demands. They are fully-digital players in the insurance market that offer great insurance solutions for all budgets. There are several aspects that set them apart from traditional companies that you should know about before going on a quest to find the best online insurance company:

  • They provide a limited range of options. Traditional insurance companies usually offer a broad variety of policies and coverage options for their customers. On the other hand, InsureTechs tend to specialize in certain services and focus on offering policies to clients with less complex insurance needs. It might be because online insurers are still relatively new in the industry and they need time to develop and evolve further. However, given the benefits they offer and their great potential, they’ll undoubtedly become much bigger in the future and expand their product range.
  • Tech-first insurers strive to simplify the shopping process and meet customers where they are. There’s a lot of paperwork involved in working with traditional insurance companies and a customer has to go through various steps to complete the process. Online insurers eliminate these obstacles and provide convenient and hassle-free procedures. This means less time and effort spent on finding the right policy. Customers are able to purchase online insurance in a comfortable and effective manner, without going through a time-consuming and stressful process.
  • Online insurers also cater to customers who are on a tight budget and can’t afford to buy expensive policies. Since they run all their activities online, they have fewer operational costs to cover and that gives them the possibility to provide cheaper insurance policies, making them a cost-effective option.

Ask for referrals

When searching for a trustworthy online insurer, referrals from family, friends or co-workers can point you in the right direction. Even though their circumstances might be different from yours, knowing that someone close to you has had a positive experience with a company can make you feel more confident in working with them. Make sure to ask them how the whole process went to help you get a clear picture of the company’s potential. Obviously, this should be only the start of your investigation as you’ll have to search for further information on the insurer from different sources.

Read reviews

The online provides precious information on every topic of interest. With a quick search on Google you can find out everything you want to know about an online insurer by reading reviews from people who have worked with them. It’s important to take your time and go through as many reviews as possible, both negative and positive. Also, use your analytical skills and try to distinguish between fake reviews and genuine ones. Besides reading customer reviews, you can take your research further and see if the company has been mentioned in the news. If the insurer has been portrayed in the media in a positive light, you can consider it a collective vote of confidence.

Check their accreditation

Trustworthy online insurers follow the standards and the regulations imposed by authoritative bodies in the field. That’s why you should always check if the online insurance provider you’re considering is accredited and runs its activity legally. It shouldn’t be difficult to find out if an insurance company is accredited or not as this is one of the first information they should provide to their customers. If you’re having a hard time finding information about accreditation or licensing, chances are you’ve come across a shady company and you should steer clear from them.

Inspect their website

A website can tell you a lot of things about the insurance company you’re researching. A trustworthy company will provide all the information customers require in a clear and straightforward manner, without hiding or omitting any details. Besides the general look of the site, other aspects you should pay attention to include contact details, accreditation and licensing information, customer reviews and the FAQ section. A professional website is an indicator of a company’s legitimacy and credibility.

Pay attention to red flags

Last but not least, you should keep an eye out for red flags. If you want to avoid falling victim to a scam, you better learn how to spot the warning signs:

  • Finding a lot of complaints or bad reviews about the company.
  • Companies that offer incredibly low insurance rates for high-coverage policies.
  • No address or contact details.
  • Unsecure websites (the ones that start with HTTP instead of HTTPS).
  • The feeling you are being pressured to accept their conditions and proceed to purchasing a policy you’re not comfortable with.
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How To Find Out if an Online Insurance Provider is Reliable