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The Web is making the insurance industry more efficient by providing more information to brokers and consumers. It's also resulting in cheaper rates and customized policies for buyers. Many observers believe that big companies yield most of the advantage in this highly competitive industry. Organizations with large resources can bundle policy packages, offer volume discounts, do cross-promotions, and re-package risk in ways that small companies can't. Bundling Policies For example, U.K.-based Plan Insurance offers insurance coverage in motor trade, commercial, personal, and taxi. A consumer can purchase more than one policy from the same company and take advantage of special discounts. Insurers can offer such discounts because it generally takes less overhead to service the same individual for different policies. The transaction becomes efficient when a universal database is used. Given record fuel prices at the pump, special discounts can be more than enough to steal business away from a competitor. As such, many insurers now offer discounts if you buy at least two policies from them. A typical combination is car and home insurance policies. Some consumers can receive as much as 25 percent discount for bundling their insurance policies. Verticals In the case of Plan Insurance, they can provide coverage for a fleet of cars owned by a company. This particular insurer also offers commercial insurance, which means Plan Insurance can provide building coverage or employer liability insurance to the same company. Consumers looking for cheaper rates may be eligible for discounts based on age, driving record, memberships, military service, or other considerations. Some insurers offer discounts to senior citizens. Defensive driving courses can also reduce premiums. Best Deals Because of the Internet, people can now shop around for the best deal. You can quickly obtain quotes online. When shopping around for car insurance, it's important to make sure that you are comparing similar coverage. Some policies may seem cheaper, but it may offer much less coverage than what you actually need. Thus, you'll need to make sure the insurance terms are the same, and find out what the rates are for various insurers. There are several websites that provide an online comparison service. You'll have to provide coverage details and check the rates that come up. Some of the variables include rates you're willing to pay, estimates on mileage, type of car, and driving history. Still, most comparison websites don't offer a full picture, and you may still have to call insurers individually to see what kind of discounts you can get based on your consumer profile. For re-prints permission, contact Marv Dumon at marvin.dumon@gmail.com
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