Direct Car Agency
Direct Car Insurance is the option of buying your car insurance directly from an authorized insurance company instead of going through insurance middlemen and independent agents.
To draw an analogy for the new business model, it is like choosing between a general medical practitioner and a specialist. A general practitioner would have an idea about the actual root cause for a symptom compared to a specialist, who would be able to diagnose the exact nature of your problem and prescribe a solution that would have a better result.
This is the same thing that happens when you choose to deal with a direct insurance policy over an indirect insurance policy. Some people may argue that it is far easier to deal with the multitudes of indirect sources on car insurance policies. These kinds of sources are out there in plenty. It is also better to approach the indirect car insurers because they offer a wide variety of services so as to keep their policies competitive in the market.
But all of these options come with their own prices. Lot of people forget to remember that nobody including middlemen and independent agents and such indirect car insurers are not to help people for charity. They have their own commission out for their work. Even though it may seem that there are multiple services for such a good affordable price, you are still paying a lot. The independent car insurance agents are carving out their margin into the quote. You must remember the bigger these companies are, the bigger their hidden costs.
The direct car insurance agencies, on the other hand have their benefits. If you go at first to a direct car insurance company, you will directly be in touch with the car insurance provider itself. These direct car insurance providers are usually large companies which have in house services like emergency pick up vehicles, tie ups with official car service centers, legal advisors and such important services. What happens here is that these direct car insurance providers may not have to outsource their services to other car insurance agencies? Even if they do, they have clear and set procedures that are outlined. This removes the reasons for inordinate delays in providing emergency car services, settling claims and providing interim relief through rent a car services etc.
Customers can also enjoy cost savings in going to a direct car insurance agency. One can get cheaper car insurance policy with very good value added services. Direct car insurance agencies talks about quality of services rather than the quantity of services that you get. Customers can also customize their policy with cheaper premiums for flexible periodic payments as well with direct car insurance agencies. You can also get some bonus services along with your standard cover as well. As a package you would be able to save your money at a later stage. For instance, direct car insurance agency may offer free extended territorial cover or extended legal liability to the family members. These are subjected to the district of residence of course.
In case of insuring multiple cars with a direct car insurance agency, they would be able to offer better premium with better value added services. This would translate into reduction in your associated costs and this is true if there is one direct car insurance agency that has to be coordinated with at all times. You would need to do due diligence with few car insurance agencies which provide direct car insurance before making a decision. This would give you good idea about the bundle of services provided by different insurance agencies and you would be able to make a comparison between them and take an informed decision. So last but not the least, you would be able to save your pocket by approaching direct car insurance agencies, who would provide end to end solution for your needs!
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za, a leading South African Car Insurance portal.
