You Don’t Know What You Don’t Know

April 26, 2015


The Hidden Problems With On-Line Insurance

Friday Harbor consumers purchase many goods and services online. Online shopping is great for purchasing certain items.  However, if you are thinking about purchasing something as important as Friday Harbor auto insurance online, think about these issues before you click “BUY NOW”.

Let’s first remember that one of the main reasons you buy insurance is to provide financial resources in the event of a major loss. You do not buy insurance for a flat tire. You can manage that. But you do want protection when a major loss occurs. If you had a major illness, would you go online to self-diagnose and buy self-treatment? Of course not. You would go to a trained and licensed doctor to have him/her treat your illness. Insurance is no different. If you try to determine all your risks, and then select the auto coverage you will fall short.  Then when the loss occurs you could have a serious problem.

Here is an example of the pitfalls of buying insurance online

We recently heard of someone who bought home insurance online. Not really knowing anything about insurance and property valuation, they thought they made a good choice that saved $100 per year. About 3 months into the policy, their home caught fire and they had a loss totaling $180,000. The homeowner needed to move out of the house for 3 months while repairs were completed, however they did not check the right on-line coverage box and therefore did not have coverage for loss of use. This coverage would have provided additional funds for the hotel and related expenses. But in this case, it cost the homeowner over $5,000 in out of pocket expenses, which would have been covered if they had chosen the right insurance coverage.

Concerns with Purchasing Online Insurance

  • Don’t believe the ads, it will take you more than 15 minutes to search, compare and buy insurance online.
  • You will definitely need to have some computer skills to navigate the online application process. If you fill out the application incorrectly, you may purchase the wrong auto coverage and/or pay more than you need to pay.
  • If you have questions, you will need to call an 800 number to actually talk to a real person. Then, you really don’t know that person’s experience, qualifications, or understanding of the laws in our state.
  • If you buy online, you have to become an insurance expert, because you won’t have an advocate to help you. Do you understand what is required in our state? Do you understand what insurance coverage you need for your individual situation? We do.
  • If you have a general question about your insurance or want to make a change, you have to login and go through a lengthy process of updating your information. With an independent agent all you need to do is call; we do all the administration.

We believe that insurance is not something you can effectively buy online. That is why we have a trained, friendly and professional staff ready to provide you with the best possible combination of coverage, price and service. When your home is damaged or destroyed, you need your claim settled by an insurance company that understands this simple fact. Safe Harbor Insurance can help you find the homeowner’s insurance that will best meet your needs and provide the most valuable combination of tailored coverage, quality service and fair pricing.