Internet Effects Car Insurance

| February 13, 2007 | 0 Comments
Internet Effects Car Insurance

Many insurance companies, like Direct Line Car Insurance, have been looking for creative ways to increase their profit margins. One of the directions the situations that these companies are looking at is the cutting of the middleman.

In the past, consumers were forced to work with an insurance agent. For many years, this was a door-to-door sales position. Later, the move was to branch offices. Today, technology has stepped in and consumers can have direct contact with the insurance companies through the internet.

By cutting out the middlemen, the insurance companies save the huge commission fees that were paid out for the policy sales. These savings are being passed on to the consumers.

Direct Line Car Insurance made its mark on the insurance industry in 1985 when it launched its company with only one way for consumers to purchase policies – by telephone. It exists today as an insurance company whose main source of communication with consumers is by the telephone.

Since that day, many companies have either started out as phone sales, or made a move in that direction. The internet has only increased the control that consumers have in their policy decisions.

The internet has also forced insurance companies – Direct Line Car Insurance included – to compete heavily for their consumer base. The ease of comparison on the computer makes it necessity for insurance companies to offer the best rates and the best customer service or else risk losing consumers to the competitors.

Increased competition means even better rates and perks for the consumer.

The competition will only continue to grow as consumers become more educated and shopping savvy. This will force companies to expand their base. Direct Line Car Insurance is already on the move. It is currently doing business in Germany, Italy, and Spain. In 2001, it expanded into the United States with the acquisition of All State insurance company.

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