The battle for market share in the auto insurance industry is heating up, according to A.M. Best. Consumers are comparison shopping and buying direct, by phone or on the Internet. Many consumers obtain multiple quotes rather than just automatically renewing their policies. Companies using direct marketing to sell auto insurance are experiencing sales increases of 10 percent to 12 percent, while those using traditional distribution lines, such as agents, have seen only nominal growth.
Consumers rank price of their auto policy as the most important factor.
The top two private-passenger auto writers are approaching direct selling differently. Allstate has four new call centers in three states, and its redesigned Web site can issue quotes and sell policies 24 hours a day. The call centers help to sell policies, service existing policies and respond to online customers who request more information through the Allstate Web site. State Farm continues to rely on its network of agents. Call centers are available for policyholders to file claims after hours, and consumers in 42 states can receive rate quotes for auto insurance online.