Hello! I'm Dan Lyles with Lyles Insurance. And in this video, I'm going to explain why anonymous online auto insurance quotes are useless.
I'm sure you've seen ads from some auto insurance companies using the buzz phrase “get an anonymous online quote” in their commercials. But are those anonymous quotes all that they're cracked up to be?
If you look at how auto insurance companies calculate rates, you're going to find two major problems with anonymous quotes. Number one, they are very inaccurate. Without knowing who you are, the best they can do is a ballpark guess. There's no way to get a quote accurately without knowing your identity. Number two, it's very inefficient. Because by getting an anonymous quote, you're only quoting with one auto insurance company at a time.
There are two major reasons why anonymous quotes are not accurate. Number one being credit. Almost all companies use credit at least to some degree as a rating factor. If they don't know who you are, it's nearly impossible to gauge that score accurately. Even if you monitor your credit closely and know your FICO scores, remember the auto insurance companies weigh credit differently than what a credit card company would or what a loan company would, and they're not really relevant. The second reason is CLUE factor. And CLUE is simply a report of your insurance policy and claims history. Again, if they don't know who you are, that becomes irrelevant as well. So what happens is, you'll get this low rated quote. And then when you go to buy a policy, all of a sudden at the last minute, it'll jump way up. I've seen this happen so often with anonymous quotes.
I quickly want to go over privacy and efficiency concerns because they're both very important also. Privacy concerns: We always hear about companies getting hacked. The good news about auto insurance is, if you avoid a couple things, you're going to avoid the vast majority of your problems. Number one: Stay away from lead generation sites! I'm going to talk more about that on the next slide. And number two, make sure you're getting an online quote from a secured website, which is easy to do now because all browsers show whether or not the website is secure. Efficiency concerns: This helps you with prices. And the best way to do is to get a quote from an independent agent. Because they have more than one company that they can quote you with at once. And this gives you the best chance of getting the best rate.
As far as lead generation sites and why they are so bad, you’ve got to understand how they operate. They look almost exactly like any typical insurance agency website, or any auto insurance company's website. The only difference is they don't sell auto insurance at all. They just take your information and then sell them to other auto insurance agents. And the problem is, a lot of them are shady and sell to dozens of agents at once. And so when this happens, your phone just blows up! And that's where the privacy comes into play. You don't know with that many people who they're selling them to. And the easy way to spot these sites is what I call look for a “NAP”, which is name, address and phone number. That's the easy way to bust these sites out. Any legitimate agency or company is going to have their name, address and phone number displayed prominently on their website. If it's not on their homepage, it'll be on their “About Us” page. But that's a good way to tell the difference between a legit site and one of these phonies!
I hope by now that I've talked you into not getting an anonymous online auto insurance quote for the reasons I've mentioned. But if you'd like some more information about auto insurance, visit my website. I've got an auto insurance page that I've included a link to. And also my blog, which I've included a link to. Which has a couple hundred articles and quite a lot of videos like this one. And also, for anybody living in Ohio, Indiana, Virginia, Michigan, Pennsylvania and West Virginia: If you'd like to have me personally run you a quote, I've also included a link to where you can fill out an online quote. And I'll get back with you with prices. Thanks for watching and have a great day!
Link from video: Auto Insurance Page
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..