Pros and Cons of Online Insurance Platforms

Sherry Lin
April 11, 2019

As we become increasingly reliant on digital technologies, consumer experience will revolve around convenience even more. A McKinsey report predicts that “by 2025, 30% of global GDP will be represented by digital ecosystems.” This includes insurance companies, which are hopping on the train with online platforms, appealing to the convenience factor. You can now access multiple car insurance quotes online! What used to be an arduous and confusing process is now simplified and easily accessible to anyone looking to buy an insurance plan. Of course, there are pros and cons to every situation. Here are some advantages and disadvantages to online insurance platforms to help you get a better idea of what to look for if you’re considering one:


  • Convenience

    Gone are the days of having to call each individual insurance company and repeatedly explaining what you need to get a quote that falls within your budget. With all the robots most companies make you talk to, you would waste so much time trying to get a real person on the phone. And with each call you’ll be wondering if the agent you’re talking to is offering you the best price. With online insurance platforms, you can get pricing for various insurance plans all in one place and a list of insurance agencies to choose from. For example, on SmartFinancial you can get quotes from multiple companies for a personalized insurance package within minutes. All you have to do is fill out one form and you can compare home insurance quotes, health insurance quotes, or whatever you want! For those who like to avoid human interaction, you don’t even have to talk to anyone if you don’t want to. You can find the best coverage at the best price without any hassle.

  • Resources

    Anyone else confused about what all the different types of insurance actually cover? When should I get a life insurance policy? What kind of health insurance should I get? Buying insurance is like being thrown into a pool when you don’t know how to swim: You keep hoping you don’t drown in the bottomless mass of information! It’s hard to pick what you need when you don’t understand what you’re choosing from. Online platforms make insurance less confusing and more digestible for the consumer. Like, do you really need renter’s insurance? What does it actually cover? Many online platforms offer blogs to engage with consumers and hopefully clear up any questions you may have. If the articles aren’t enough or if you just don’t like to read, you can even call customer support for help and have them explain everything to you.

  • Less Work

    Online insurance platforms provide market transparency, which means finding a good price is easier because of increased competition. That’s good news for consumers! You no longer have to bargain with each individual insurance company to get a lower price for good coverage. The market transparency of these online platforms does the work for you. It also helps reduce information discrepancies between you and insurance companies to make sure you both are on the same page with the policy you choose.


  • Scammers

    You always have to be careful about the information you give up to online platforms. Some fake companies may monetise your data to third parties in ways you don’t expect. Privacy is now a controversial topic because of how interconnected people are through social media platforms like Facebook. It’s unavoidable that ads for Sephora will pop up after your google search for “best eyeliners 2019” but you can avoid having your personal information like SSN, credit cards, and contact info from being stolen. Look for a privacy policy, like the one here, to fully understand how your information will be used before releasing any. Make sure the website you’re visiting is safe and secure before inputting any kind of information. Also, always beware of sharing sensitive information to prevent cyber-related threats.

  • Misinformation

    With online insurance platforms, the reader often assumes the information provided is in your their best interest. However, content may be overly simplified to provide biased information to boost sales for a particular carrier. This means the information is only for the average consumer, and may not directly apply to you. It can also cause you to focus too much on prices instead of other product characteristics that may be just as, if not more, important. There are also conflicts of interest where some platforms may reduce transparency to give one sponsored product advantage over the others. Be careful about which platform you use!

  • Customer Service

    As convenient as it is to do everything online, you do lose a bit of a personal touch when interacting with the company, It’s easy to forget that there are real people working on the other side of the screen to fulfill your requests, especially when so many companies actually try to make it hard for you to talk to someone from customer service! Even their contact information is hard to find sometimes. You have to think about the trade-offs with each platform you decide to use. Make sure to find one that provides the convenience you seek in addition to having someone ready to answer any questions you may have.

These disadvantages apply to so much more than just online insurance platforms. Just by going online to any website, you potentially expose yourself to all of the above risks and more if you’re not careful. The digital age of insurance is setting in, and you can use these platforms to find a plan perfect for you. Insurance CAN be easy and hassle free with the right tools. Head over to SmartFinancial to get started!

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