| Auto insurance agencies are basically the | | | | getting paid for work that you can very easily do |
| middlemen of the car insurance world. Most | | | | for yourself. It is a very simple matter to go |
| agencies do not underwrite the policy you buy | | | | online, answer a few questions, and submit them |
| from them. In most cases they are there to take | | | | to a car insurance company. |
| your money, process your claims, and answer | | | | The car insurance companies will then give you a |
| any questions you may have. The policy is usually | | | | quote and you can purchase your coverage from |
| covered by one of the large insurance companies. | | | | the comfort of your own home without having to |
| For example if you go into The John Doe | | | | pay off the middle man. This can account for |
| Insurance Agency and purchase coverage, you | | | | significant savings on your car insurance |
| may only deal with John Doe, but most of your | | | | premiums. |
| money will be paid to a large carrier that is | | | | The era of the auto insurance agency is quickly |
| responsible for funding any claims you may have. | | | | fading as more and more people are beginning to |
| The reason it is important to know this is that the | | | | realize how much money they can save by |
| agency, in this case John Doe Insurance, needs to | | | | shopping online for a policy. The days when finding |
| keep a percentage of the money you are paying | | | | a good rate for auto insurance could only be done |
| out for your policy to cover the agencies costs. | | | | at a local agency are over. There is no reason not |
| This is the typical way insurance agencies have | | | | to take advantage of the speed, convenience, |
| made money since the first policy was written. | | | | and savings, which online auto insurance has to |
| The problem with this method of purchasing | | | | offer. |
| vehicle insurance is that the agency is basically | | | | |