Buying insurance, online, is it reliable or foolish?

Everyone is online these days. Everyone does everything online including emailing, banking, checking the weather, ordering food and buying insurance. However, is buying insurance, for oneself online, a good idea? I understand it might seem easier and many think it is cheaper, but is it actually more advantageous?

I recently spoke with someone who used a popular insurance website to start their own auto insurance policy. As an accomplished insurance agent, with a license I am required to obtain and renew biennially. I have some strong unease with this process.

Did this consumer have any idea what they were purchasing? Did they get the protection that they actually need?

Every state has law requirements when it comes to automobile insurance. I, myself, did run a quote on this popular insurance website, and noticed that they do indeed offer a quote for the Ohio State minimum coverage ($25,000/$50,000/$25,000,). They also offered options for higher coverage, quoting the price for each option. Which option would you chose? Do you even know what these limits mean?

This particular website does give you a brief description of each coverage option, but as we all know, insurance can be a little puzzling at times.

This consumer picked the lowest coverage offered, as it was visibly the cheapest price, and did not chose all the coverage’s offered because they honestly did not think the needed them and are not REQUIRED by the State of Ohio. NOT REQUIRED does not mean NOT IMPORTANT.

I also have some concerns over the legality of this purchase. As I mentioned earlier, I am required to have a license to sell this coverage and training to sell it properly. As a consumer, you have neither. Who is responsible or liable if a consumer chooses inadequate coverage due to incomprehension and a loss occurs? Do we just blame it on consumer lack of education or is this online insurance company partially to blame? As everyone already knows the insurance company will take no blame for this, as they are not required to instruct you on insurance just offer it at a reasonable price. It is my job, as a licensed agent, to educate and advise you.

So again, my question to you — Is buying insurance online, for oneself a good idea or is it just unwise?